Over three-quarters of Millennial investors are currently choosing to or are interested in investing their finances in socially responsible and impacting investment options that aim to create positive change in the world, according to a new report published by investing platform Swell Investing.
Swell Investing — “an impact investing platform that aims to deliver profit as well as purpose” — tasked Harris Poll with surveying 2,207 US adults aged 18 and over, made up of 436 Millennials aged 18-36, among whom 235 have investments — which I would not suggest is highly representative, but is nevertheless still statistically significant. The survey found that 78% of these millennial investors are currently invested in socially responsible and impact investing options — defined in the survey as “investing in companies that are creating positive change in the world and have strong environmental and workforce policies” — or plan to in the future.
More specifically, 54% of Millennials responded, “I don’t currently invest in socially responsible or impact investing options, but I plan to invest in the future” while 24% confirmed they “currently invest in socially responsible or impact investing options.”
“We find that younger generations have a strong desire to use their dollars to improve the world as well as gain a financial return when it comes to investing,” said Dave Fanger, CEO of Swell Investing. “For some, transparency is a barrier. This is a generation that is deeply curious. They’re highly interested in socially responsible and impact investing, but education around the companies they are invested in is key.”
Swell Investing’s report, Money Meets Morals Study, also found that 49% of Millennials who have investments are not able to name the top three companies in their investment portfolios — which, in my opinion, probably has more to do with the current style of investing than any increase in inattention. Further, Millennial investors were more likely than Gen X investors to be skeptical of socially responsible and impact investments, with 27% saying that they were concerned their money wasn’t being used to back positive companies, compared to only 18% of Gen X investors.