While millennials may be the generation most associated with social impact investing, other groups are showing strong interest, according to a new study from Allianz Life Insurance.
Sure, it’s still millennials who are participating in ESG investing at a higher rate of 17% compared with Generation Xers at 7% and boomers at 3%. But more Generation Xers and boomers say they are interested in investing money in ESG investments, an Allianz Life Insurance ESG Investor Sentiment study found.
“When it comes to investing in and doing business with good corporate citizens, there is interest across the board and it’s only going to grow,” said Todd Hedtke, chief investment officer for Allianz Investment Management, said in a statement.
The study also shows growing interest and demand to learn more from different age groups, both older and younger than millennials.All generations are equally unsure as how to evaluate if a company cares about causes they support, such as diversity in the workforce and consumer protection.
“These stats show us that people from all generations are looking to learn more about ESG and want to put their values into action,” said Kelly LaVigne, vice president of Consumer Insights, Allianz Life.
Almost two-thirds of millennials said ESG issues are important in their investing decisions, with Gen Xers not far behind at 54% and boomers at 42%.
- Among the three generations, more baby boomers are motivated to participate in ESG investing to encourage companies to be good corporate citizens.
- Majorities across all three generations say ESG is a key factor in which companies they choose to do business at 77% for millennials, 64% for Gen Xers and 61% for boomers.