NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, May 21, 2015

Investors who wish to promote social responsibility are most focused on the environment and invest accordingly, according to a new Spectrem Group study.

The highest percentage (44 percent) are interested in investing in organizations, companies or charities that deal with water conservation, while 41 percent said they are most interested investments that promote the development of solar energy. More than one-third (36 percent) want their investment to develop wind as an energy source, with 33 percent are looking to promote forest management.

Four-in-ten investors said they are primarily interested in investing in organizations, companies or charities that promote exercise and good health.

Overall, social responsibility is not a high priority for affluent investors when selecting an investment, according to recent wealth level studies of affluent households conducted by Spectrem Group. At least three-fourths of Millionaires with a net worth of to $4.9 million (not including primary residence), for example, consider an investment’s level of risk, track record, tax implications and diversification. Only 29 percent weigh whether the investment is socially responsible.

But affluent investors who do engage in socially responsible investing are passionate about it.