Responsible Investing: What UK investors really think

New research from Scottish Widows explores how more than 2,000 UK investors and people considering investing view responsible investing – and what they expect from investment providers.

Responsible investing matters

For many people, investing is no longer just about financial returns. Increasingly, investors want to know that their money is being managed in a way that considers environmental, social and governance factors alongside financial performance. Our latest research suggests this trend is particularly strong among younger generations, who are more likely to consider responsible investing when making investment decisions.

The research found that 63% of retail investors consider environmental, social and governance factors when choosing investments, rising to 83% among investors aged 18-34. Meanwhile, 74% of investors overall believe responsible investing can help support stable long-term returns.

What issues do investors care about?

We asked respondents about a number of societal issues they care about most. The cost-of-living crisis came top of the list. Climate change was the second biggest concern, followed by energy security, job creation and water pollution. 

The findings suggest that investors are thinking about both their personal finances and the wider challenges facing society. Rather than viewing responsible investing as separate from financial wellbeing, many see these issues as closely connected.

Younger and older investors have different priorities

The research revealed a clear generational divide. Younger investors are generally more supportive of responsible investing, more likely to research environmental, social and governance issues, and more interested in receiving information about the responsible investment credentials of companies and funds. 75% of investors under 35 would like responsible investing to be built into investments as standard, compared with 39% of investors aged 55 and over.

Younger investors are also more likely to make lifestyle and purchasing choices based on environmental or social concerns, including choosing where they invest their money. Older investors, meanwhile, are more inclined to focus on actions such as improving energy efficiency at home or reducing household waste. 

Investors want responsible investing without sacrificing performance

Our research found that investors don’t necessarily see responsible investing as a trade-off.

Nearly eight in ten investors said they would prioritise responsible investments if performance were comparable with other options. At the same time, 68% assume that some degree of responsible investing is already built into the funds available to them. 

Many investors also expect investment providers to take responsibility for integrating responsible investment principles. Sixty-three per cent believe it’s the provider’s responsibility to ensure responsible investment standards are upheld. 

Choice and transparency matter

While support for responsible investing is strong, investors still want flexibility.

The research found that 62% would like the option to choose specific environmental or social themes that matter to them, while 69% would be more likely to invest responsibly if investments were clearly labelled.

Investors also value active engagement from investment providers. More than three-quarters said they appreciate providers engaging with companies to encourage better behaviour and stronger risk management practices.

Clear communication is essential

A recurring theme throughout the research was the need for simple, easy-to-understand information.

More than 40% of investors said they don’t have enough information to properly assess responsibly invested funds, while 43% want clearer and simpler explanations. Investors said they prefer concise facts, clear labelling and straightforward summaries rather than technical jargon or overly complex reports. 

Email and mobile apps emerged as the most popular communication channels, although preferences vary by age group. Younger investors tend to favour digital channels, while older investors often prefer simpler summaries and labels. 

What does this mean for investors and investment providers?

The research suggests that responsible investing is moving from a niche interest to a mainstream expectation. Investors increasingly want their money to support companies that manage risks well and take environmental and social issues seriously, while still delivering long-term financial returns.

At the same time, investors are looking for clear information, meaningful choice and greater transparency. For investment providers, the challenge is to make responsible investing easier to understand and more accessible. For investors, it highlights the importance of asking questions, understanding how funds are managed, and ensuring investments align with both their financial goals and personal values.

Key takeaways 

• 63% of retail investors consider environmental, social and governance factors when investing.
• 78% would favour responsible investments when performance is comparable.
• Climate change, energy security and the cost-of-living crisis are among the issues investors care about most.
• Younger investors show the strongest interest in responsible investing.
• Investors want clearer, simpler information and more transparency.

This article is based on Scottish Widows research involving more than 2,000 UK investors and people considering investing, conducted to understand attitudes towards responsible investing. View the full report (PDF, 330KB).