CREATING A STRONG ECONOMY
Millennials and Gen Z Are Giving up on One of Their Core Values and Investing More Like Boomers Jan 11, 2024 | Cork Gaines , Business Insider T he turbulence of the economy over the last two years has many people rethinking how they invest their money and now environmental and social issues are In the survey, preference for ESG investing among millennials and Gen Z — aged between 18 and 41 — plummeted significantly compared to the year before. People who responded that they were “very concerned about environmental issues” dropped from 70% in 2022 to 49% in 2023.
paying the price. Millennials and Gen Zers have traditionally been more supportive of socially responsible investing, but many are now echoing the cautious approach traditionally associated with baby boomers . With inflation still high and ESG investing becoming a political target, fewer young investors are expressing strong concern about things like the environment and social issues, and they are also less willing to sacrifice investment gains in support of these initiatives. These findings are the result of a survey by Stanford University, the Hoover Institution, and the Rock Center for Corporate Governance, which polled 993 investors across the United States during the fall of 2023, and published results in December. The survey examined the support for environmental, social, and governance (ESG) issues and investing across different age groups. Investments receive an ESG rating, and ESG investors pick assets that align with their views on these subjects.
Similar drops were also seen for social and governance issues. Younger investors who were “very concerned about social issues” dropped from 65% in 2022 to 53% in 2023. Governance issues fell from 64% to 47%. Millennial and Gen Z investors’ preferences in 2023 were much closer to those of baby boomers compared to 2022. While a gap still exists between the younger and older investing groups, many more millennial and Gen Z investors now align with the more common responses among boomers of being “somewhat concerned” or “not concerned” about these issues. These findings come against a backdrop of a political backlash against ESG investing that could be influencing
investors of all ages. Read more here. n
18
The Business Review | February 2024
Made with FlippingBook - professional solution for displaying marketing and sales documents online