There is growing emphasis for companies to clean up their operations, with ESG (environment, social and governance) investing being a key factor for investor analysis. We conducted a survey into how many people in the UK invest, how ethical their portfolios are and if current non-investors would be swayed to invest into ethically run companies.
ESG statistics: Highlights
1 in 10 UK investors have taken part in ESG investing.
76% of consumers will stop buying from companies that treat the environment poorly.
88% of consumers will be more loyal to companies that support social and environmental initiatives.
88% of publicly traded companies had an ESG initiative as of 2020.
However, 58% of executives admitted to instances of greenwashing within their organization.
80% of the world’s largest companies are reporting significant exposure to climate change risks according to external research.
Millennials are the most likely to invest ethically, as 14% of millennial investors have been involved in ESG investing.
Does the UK invest ethically?
Our recent survey found that, while over half of UK adults have invested as of 2024, just 1 in 10 of those investors (11%) had ESG investments as part of their portfolio. While a previous Finder survey revealed that 77% of investors would consider investing ethically, it seems this has not yet translated into reality.
Ethical investing varies among the generations. Millennials are the most likely to have an ESG investment, with 14% having done so. They are followed by generation Z, with 9% having invested in ESG.
Meanwhile, just 7% of generation X, 5% of baby boomers and 4% of the silent generation have made an ESG investment.
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ESG is key for companies today, since consumers are more conscious of the environmental impact of their consumption. Research shows that 88% of consumers will be more loyal to companies that support social and environmental initiatives. There is a lot of opportunity for companies to improve on ESG, only 50% of companies believe they measure up well against environmental metrics, according to a recent global survey.
Committing to ESG can be costly, but the upside of the initial investment is reflected in the stock market. According to a recent metastudy, the majority of ESG investment funds perform better than the overall market.
Companies that believe they meet environmental metrics
50%
Consumers that are more loyal to ESG friendly companies
88%
What is greenwashing?
Greenwashing occurs when companies focus more on marketing themselves as environmentally friendly than on limiting their negative environmental impact. A recent global survey found that around 80% of executives believe their organization is meeting ESG metrics, but 58% of the same executives admitted to instances of greenwashing within their organization.
Greenwashing can backfire, if consumers find out about it. Recent research shows that around 76% of consumers will stop buying from companies that treat the environment poorly.
Importance and adoption of ESG
Aside from attracting interest from consumers and investors, many companies around the world are directly affected by their ESG effort. 4 in 5 (80%) of the world’s largest companies are reporting significant exposure to climate change risks according to external research. In light of this, more than three-quarters (77%) of small and mid-sized companies in the UK formally stated their ESG goals, according to recent research.
How many ESG funds are there?
As of 2021, there were 167 ESG funds in the UK for investors to choose from. According to external research, 88% of publicly traded companies had some ESG initiative in place, as of 2020. By comparison, only around 2 in 3 (67%) private companies had ESG initiatives in place at the same time.
Danny is a publisher at Finder specialising in insurance and investing. He previously worked at the global insurer Aon and has appeared in national media giving advice on insurance. Danny holds a BA in International Business from the University of Plymouth and has undying loyalty to his average-poor football team, Portsmouth FC. See full bio
Danny's expertise
Danny has written 347 Finder guides across topics including:
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