New research from Thrive Renewables has found that retail investors could free £214.4bn worth of investments needed to fund UK net zero infrastructure ambitions.
The research, which was published on Monday by Thrive Renewables – a renewable investment company – revealed that more than two thirds (67%) of investors would put £8,228.41 into opportunities that align better with their environmental values.
Experts claim this funding would form a significant part of the £330bn needed in the next six years to deliver the required energy infrastructure for a just transition to net zero. However, concerns over greenwashing and a lack of available information on impact investments, which are financial investments that generate measurable, positive environmental impacts, are holding back this crucial expenditure.
From the research, which was conducted by Opinium Research on behalf of Thrive Renewables and included a sample size of 3,000 adults, it has become clear that younger people are more willing to invest in such an opportunity. 18% of people who were surveyed say they will start or increase impact investments within the next year, however 33% of younger investors, which have become known as Changevestores and are aged between 18-34, have already included bigger investments in their portfolios.
As well as this, a third of this group (33%) say they have plans to increase this in the next year. This reflects their wider choices with more than two thirds (73%) saying they have made some or significant lifestyle changes.
In contrast, the research reported that over 55’s are the least likely to invest in pact focused investments, despite being the group most likely to have investments and prioritising longer-term returns and mitigating against financial risk.
However, despite Changevestors looking to meet infrastructure sustainability goals, some are leading calls for more sustainable investment options. 63% of 18–34-year-olds want to see more investment options that would help prevent climate change and 55% were frustrated by a lack of mainstream options for more sustainable investing.
‘Greenwashing and a lack of information around impact investments are knocking the confidence of would be impact investors,’ Matthew Clayton, managing director of Thrive Renewables said. ‘This is subsequently holding back billions of pounds from being invested in the projects that are vitally needed if we want to see a just transition to hit our legally binding net zero goals.’
Matthew added: ‘We in the industry need to do better at charactering what we’re delivering – long-term investment opportunities that also answer a societal need – to better attract a more diverse investor audience. After all, there are few better wats individuals can support the environment than funding impact-driven projects: research has shown this makes 21 times more of a difference than any other lifestyle change.’
News of the research from Thrive Renewables has come amidst a vast amount of new realisations being made in regards to the current climate crisis at COP28. On the evening before the global climate change conference began in Dubai, research from the British Chambers of Commerce revealed that 40% of UK companies don’t understand climate change targets, suggesting that it is more important than ever for retail investors to supply funds to help meet infrastructure net zero targets.
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