Tuesday, January 18

Ninety One Survey Finds Investors More Opposed to Sin Industries Than Big Carbon Emitters

A Ninety One survey of more than 6,000 investors found they were more averse to investing in sin industries than in large carbon emitters.

On Tuesday, the fund manager released the second edition of its Planetary Pulse survey, Investing for a Carbon-Free World: What Investors Want. Planetary Pulse surveyed investors in the United Kingdom, the United States, Canada, Italy, South Africa, Hong Kong, Germany, Denmark, Sweden, and Singapore.

Approximately 59% of those investors opposed investments in pornography-related companies, sectors or businesses, 57% opposed investments in the arms trade or arms trafficking, and 43% opposed investments in tobacco.

However, opposition to investments in the world’s major carbon polluters was low. Only 19% opposed investments in oil companies and 16% opposed investments in mining companies.

Source: Ninety One

Almost half of the people surveyed were between the ages of 31 and 50. Approximately 54% identified as male and 45% as female. 69% of those surveyed worked full time and 16% had their own businesses.

The survey found that nine out of 10 respondents think reducing carbon emissions should be encouraged and indicated that they were happy that their money played a role in achieving that goal.

Almost a third of respondents (32%) believed this so strongly that they are happy that their money is being used to reduce carbon emissions, regardless of financial performance.

About 45% of investors indicated that the reduction of carbon emissions should be encouraged. They were happy that their money was influencing this and expected a competitive financial return.

About 32% of respondents want investment managers and asset owners to phase out all current investments in high-carbon companies and never invest in higher emitters again. Fifty-two percent of respondents asked investment managers and asset owners to use their influence as shareholders to help companies, including high-carbon emitters, reduce their use or production of carbon.

Types of investors

The compilers of the survey results identified four types of investors based on how they thought about global investing and sustainable investing specifically:

These types of investors were:

  • Silently cautious (28%). These investors are very risk averse and are less interested in questioning company ethics and practices. They are not convinced that net zero affects climate change and have little or no knowledge of net zero.
  • Whatever works (21%). These investors have a carefree attitude and go with the flow. However, they are interested in following investment trends and are increasingly aware of net zero.
  • The attentive (24%). These investors plan carefully, do their research, and pay close attention to where their money ends up. They are willing to pay for ethical and environmentally friendly things to do their part. They believe in net zero, including building a financial and planetary legacy.
  • Confident enthusiasts (27%). These investors focus on generating income and wealth. They are hungry for search, data, and ideas. They are net zero enthusiasts, and they will divest themselves if there is no adequate action from the big economies and polluting sectors.

Ninety One defined net zero as a balance between the amount of greenhouse gas emissions the planet emits into the atmosphere and the amount removed from the atmosphere.

“This would stabilize global temperatures and address climate change,” the fund manager said.

Ninety One CEO Hendrik du Toit (pictured above) said in a statement that a sobering fact about the drive toward net zero is that it should work for the world’s 7.9 billion people, or it will fail everywhere.

“To save the planet, we must help emerging markets go green. This means strong carbon markets, climate debt agreements and financing options to accelerate the transition, ”he added.

Justin Brown is a reporter for Citywire, providing insights and information for professional investors around the world.

This article was first published on Citywire South Africa hereand republished with permission.


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