This is among the sustainability-focused findings of Schroders’ Global Investor Study 2022, which have been revealed today.

“Expert” investors are more likely to believe that investing sustainably is key to driving long-term returns compared with their peers who rate themselves as less knowledgeable, research by Schroders has found.

The finding is from Schroders’ Global Investor Study 2022, the bellwether annual survey which highlights trends based on the answers and opinions of more than 23,000 investors in 33 locations. Data was gathered between February and April.

How important is a sustainable approach to long-term returns?
More than two-thirds (68%) of people who class themselves as having “expert/advanced” investment knowledge believe sustainable investment is the only way to ensure profitability in the long term.

This compares with 52% of ‘”intermediate” investors and 43% of those who believe they have “beginner/rudimentary” investment knowledge.

Hannah Simon, Head of Sustainability Strategy, says: “The interaction between sustainability and returns has seen some polarising results this year. While self-professed beginner investors appear more sceptical, the majority of people believe sustainability is crucial to delivering long-term returns.”

What draws people to sustainable investments?
Similarly, 69% of “expert” investors share the view that investing sustainably can support positive change when it comes to challenges such as climate change.

“This is encouraging to see and further emphasises the crucial role asset managers and advisers have to play in helping investors better understand how investing sustainably can not only help overcome challenges such as climate change, but also support their long-term returns,” Hannah says.

She continues: “Indeed, we see an intrinsic link between long-term sustainable investment returns and solutions to some of the world’s social and environmental challenges.”

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