Retail Investors Want Funds and Pension Plans to Take an Active Role in Addressing Climate Change
New global public opinion research by GlobeScan, in collaboration with InfluenceMap, shows that retail investors support investment funds being more involved in addressing climate change, as well as in the protection of nature and wildlife and resolving economic inequality. Public support is particularly strong for investment funds encouraging governments to act on climate change, followed by financing companies advancing cleaner energy.
The survey of nearly 5,000 retail investors (defined as those who own and invest in stocks, bonds, funds, or who participate in company or government pension or retirement schemes) in ten countries and territories (Australia, Canada, France, Germany, Hong Kong, Italy, Japan, Singapore, UK, and the USA) was conducted in July and August of 2023 and shows that retail investors in the ten markets surveyed express similarly high levels of support for investment funds becoming more active in the climate space.
Investors in Germany are particularly prone to strongly support investment funds taking an active role in addressing climate change, while support is somewhat weaker in the Asian markets surveyed (Hong Kong, Japan, and Singapore).
- Forty-four percent of retail investors strongly support investment funds advocating for governments to act on climate change, with another 43 percent somewhat supporting it.
- More than four in ten retail investors (42%) also strongly support investment funds in financing companies advancing cleaner energy, with another 47 percent somewhat supporting it.
- Almost four in ten (39%) also strongly support investment funds proactively encouraging companies they are investing in to act on climate change, with another 48 percent somewhat supporting it.
- In addition, 38 percent of retail investors also strongly support investment funds in avoiding investing in companies that contribute significantly to climate change, with another 43 percent somewhat supporting it.
- There is also relatively strong support among retail investors for investment funds to provide information on the impact of investments on nature and wildlife (38% strongly support, 49% somewhat support), on economic inequality (37% strongly support, 50% somewhat support), and on climate change (30% strongly support, 56% somewhat support).
GlobeScan’s research shows the extent of retail investors’ demand for ambitious climate action by their fund and pension managers. This stands in stark contrast to InfluenceMap’s findings that the world’s 45 largest asset managers are investing almost three times more assets in fossil fuel companies than green ones, while the proportion of managers with ambitious investee company stewardship has almost halved since 2021.
These asset managers, while holding significant influence over sustainable finance policy, are not engaging to support it, either in the US or the EU. In fact, 86% of the fund management firms we assessed are members of industry associations that are strategically opposing sustainable finance policy globally.
If these fund managers are to meet expectations of their retail investor clients, it’s time for them to match their top-line statements with ambitious action on climate.
Daan Van Acker, Program Manager at InfluenceMap
Not nearly enough attention is being paid to the hopes, values and expectations of retail investors, the owners of so many assets across the world. This research showcases the opportunity for asset managers to be much more responsive to their investor base and shift their investment strategies towards more low carbon, nature positive and inclusive investments.
Chris Coulter, CEO of GlobeScan
1. How important is it that your investments consider each of the following issues?
01 Very important
02 Somewhat important
03 Not very important
04 Not at all important
- Addressing climate change
- Protecting nature and wildlife
- Reducing economic inequality
2. How much do you support or oppose your fund or pension plan to do each of the following?
01 Strongly support
02 Somewhat support
03 Somewhat oppose
04 Strongly oppose
- Provide you with information on the impact of your investments on climate change
- Invest more in companies that advance clean, low-carbon, and renewable energy
- Avoid investments in companies that contribute significantly to climate change
- Proactively encourage companies they are investing in to act on climate change
- Support governments to act on climate change
- Provide you with information on the impact of your investments on nature and wildlife
- Provide you with information on the impact of your investments on economic inequality
GlobeScan administered an online survey to approximately 1,000 adults in each of 31 countries and territories except Hong Kong, Kenya, Nigeria, and Singapore where it was administered to 500 adults, and the USA where it was administered to 1,500 adults.
The questions included in this release were only asked in Australia, Canada, France, Germany, Hong Kong, Italy, Japan, Singapore, UK, and the USA and asked only to those who said they own shares (“Own and invest in stocks/bonds directly,” “Own and invest in ETFs (exchange-traded funds) or mutual funds directly,” and/or “Participate in a company or government pension or retirement scheme”). The total sample was 4,988 adults.
Data collection took place in July and August 2023.
- Kitty Hatchley, Press Officer, InfluenceMap
kitty.hatchley@influencemap.org - Stacy Rowland, Director of PR & Communications, GlobeScan
+1 416 992 2705
stacy.rowland@globescan.com
About InfluenceMap
InfluenceMap is a London-based think tank with offices in Canberra, New York, Seoul, and Tokyo. We provide data-driven analysis to investors, corporations, and the media on issues related to energy and climate change. Our metrics for measuring corporate influence over climate policy are used by investors globally, including the Climate Action 100+ investor engagement process.
