While Millennials seem to be the generation most interested in applying their ideals on environmental, social and governance (ESG) issues to their finances, Gen Xers and Baby Boomers also want in, according to the ESG Investor Sentiment Study from Allianz Life.
It found that although Millennials are more likely to make investment and purchasing decisions based on issues that are important to them, Gen Xers and boomers are also putting their values into action.
Nearly two-thirds of Millennials said ESG issues are important in their investing decisions with Gen Xers not far behind at 54% and boomers at 42%.
In addition, majorities across all generations say ESG is a key factor in which companies they choose to do business with (77% of Millennials/64% of Gen Xers/61% of boomers).
Driving action
“Millennials get a lot of attention for driving ESG investing,” Todd Hedtke, chief investment officer for Allianz, said in a statement. “But when it comes to investing in and doing business with good corporate citizens, there is interest across the board and it’s only going to grow.”
Currently, only 17% of Millennials are participating in ESG investing (compared with Gen Xers at 7% and boomers at 3%), yet nearly half of Gen Xers and boomers say they are interested in having some money in ESG investments at 49% and 47%, respectively.
In fact, Baby Boomers are more likely than Millennials and Gen Xers to say that the reason they want to participate in ESG investing is to encourage companies to be good corporate citizens (61% of boomers, compared with 51% of Millennials and 48% of Gen Xers).
Asked about the single most important issue when it comes to doing business with a company, all generations agree social issues such as diversity in the workforce and consumer protection are most important, followed by corporate governance issues and environmental topics.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.