Research from wealth management company Quilter has found that more than four in ten (42 per cent) investors want the option to invest in companies enabling the green transition.

The survey of Quilter’s customer panel found less than a quarter (24 per cent) did not want the option to invest in this way, while a third (34 per cent) were unsure. Of the investors that did want to invest in companies enabling the green transition, close to one in three (29 per cent) believe at least half of their portfolio should be invested in such a way, with more than half (54 per cent) wanting a minimum exposure of a quarter of funds.

Furthermore, a similar proportion (44 per cent) want their investments to play a role in achieving net-zero. For those investors 41 per cent believe their portfolio should exclude companies not meaningfully transitioning to net-zero, although responses suggested a need for balance and understanding that for some companies there will be a more gradual change.

Ido Eisenberg, head of responsible investment at Quilter, commented: “Recent years have brought an increasingly challenging backdrop for the green transition, with a rise in populist rhetoric pushing back against renewable energy and policies. Despite this, consumers clearly recognise that climate change is real, happening now, and already influencing their daily lives. They understand that these impacts extend to their portfolios, regardless of who holds political power. The recent weeks have clearly demonstrated how reliance on fossil fuels can drive market volatility.”

For those who want to see exclusion, a large majority (60 per cent) want to see investments avoided in high emitting sectors such as oil, gas and aviation. Coal is overwhelmingly the sector people most want to see excluded, closely followed by the worst oil and gas emitters, highlighting pragmatism from investors by wanting to understand emissions and exclude the worst offenders, but not to have a portfolio that has blanket exclusions that may hamper the transition.

The survey has previously revealed that three-quarters of investors are concerned about climate change, with two-thirds taking action themselves by reducing home energy usage, and a six in ten) reducing food waste.

Eisenberg added: “At the same time, the results show a marked disconnect between the high level of climate concern among investors and the relatively low adoption of investment products that integrate climate considerations or support the transition.”

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