The world is suffering from climate change caused by increasing human consumption of natural resources and irresponsible waste disposal. We’ve been saying that for decades, but millennials are trying to effect a real change through the decisions they make.
When searching for a job, a company’s corporate social responsibility (CSR) program is not an option but a must-have. At the supermarket, more millennials are checking labels to see if the ingredients are sustainably and ethically sourced.
In other purchases, Millennials positively perceive and are inclined to support brands that are ‘green’ (e.g. use recyclable material), or have charitable causes, or both. This has and will continue to impact business models as more companies seek to work with charity partners or communities from less developed countries.
Millennials’ interest in making a social impact extends beyond the brands they look at or the products they buy; it also influences the investments that they make.
According to a study1 by Morgan Stanley, millennial investors are nearly twice as likely to invest in companies or funds that target specific social or environmental outcomes.
In fact, TD Ameritrade reports2 that 51 percent of millennials in the US have at least 21 percent of their money in ESG investments — investments that promote environmental, social or governance goals — compared to 49 percent of Generation X and 45 percent of Baby boomers.
Millennials are prioritising social responsibility in every sector. For all businesses and institutions, that seems to be the only way into a millennial’s heart.
With millennials growing their marginal share of the investor wallet, investing based on socially responsible principles will become increasingly important. At Eastspring Investments, we integrate environmental, social and governance (ESG) considerations in our investment processes. Find out more about Eastspring Investments.