More than half of consumers in the US and the UK say they find the concept of impact investing somewhat or very appealing.
Impact investing means taking a business’s impact on society into account along with potential financial returns. Impact is typically measured in terms of “socially responsible” enterprises and to those that support environment, social, and governance causes.
Consumer support for impact investing was revealed in an annual study conducted by American Century Investments, which surveyed 1,003 participants from the US and 1,004 UK citizens. The parallel results show that 56% of US respondents and 59% of British citizens find the concept of impact investments somewhat or very appealing.
That’s a big increase over 2018, when 49% of respondents showed an affirmative attitude toward socially aware investing. IN 2016, the figure was just 39%. Clearly, the idea is gaining momentum.
Millennials are the driving force behind this increase, showing the most interest at 65% (US) and 72% (UK). The findings suggest that nearly two in five US millennials plan to make an impact investment of their own within five years. One in three of their UK counterparts have similar plans.
Although GenXers are showing less interest, they still rank high with 55% of US respondents and 64% of UK respondents supporting impact investing.
Baby boomers lag behind. Only 49% of US respondents and 46% of UK respondents born between 1946 and 1964 showed support toward the concept.
Asked which field would attract their impact investments, respondents from both countries identified healthcare as a prime concern. The environment and sustainability ranked second, followed by improved education, mitigating poverty, gender equality, and alignment with religious principles.