These days, many people want to use their money to do good in the world. And they’re seeking out investment opportunities that are in line with their social and environmental values.
“That can be, you know, health and wellness, it could be around climate and environment altogether. It could be around sustainable infrastructure,” says Lazaro Tiant of Schroder’s Investment Management, North America.
He says that the sustainable investment market has skyrocketed over the past few years.
In 2020, contributions to sustainable funds totaled more than $50 billion. That’s more than 10 times the total just five years earlier.
And while investors of all ages are taking part in the trend, Americans in their 20s and 30s play an outsized role.
Tiant says for many young adults, investing in clean energy and climate solutions – and avoiding polluting industries – is more than a financial decision.
“This is also personal because we’re talking about major issues that have been passed on to them before they can even consider a life path to take,” he says.
In the coming years, people under 40 will inherit tens of trillions of dollars from older generations, so their influence in shaping financial markets will continue to grow.
Reporting credit: Sarah Kennedy/ChavoBart Digital Media