Retail investors around the world are significantly more likely to ignore ESG (environmental, social & governance) factors than consider them before they invest, according to data from the latest Retail Investor Beat (RIB) from online broker eToro.
In the study of 10,000 retail investors across 12 countries, just 22% stated that they always consider ESG before investing in an asset. More than double this number (46%) said the opposite, with a significant proportion (14%) of this camp having turned their back on ESG after previously prioritising it. A further 22% said that they only think about ESG when their investments are performing well.
When those who do not consider ESG when investing were asked why, the second and third most common responses were that ESG is confusing (25%) and that there has been too much greenwashing (24%).
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