Australian men are more interested in impact investing than Australian women, with 69 per cent of men finding it appealing in 2022, compared to 57 per cent of women, according to the impact investing study released by the $218 billion* global asset manager American Century Investments.
The sixth impact investing survey surveyed retail investors across the US, UK, Germany, Australia and, for the first time, Singapore. Respondents were weighted according to age, sex, country, race, and education, with the results showing both Australian men and women find impact investing more appealing than they did just a year ago.
According to American Century Investments’ head of sustainable investing, Sarah Bratton Hughes, unfortunately that also means the gender gap in Australia has grown over the past year from five per cent in 2021 to 12 per cent in 2022.
“This result may be a factor of men’s overall familiarity with investments and their propensity to invest. Our survey found over half of Australian men surveyed (51 per cent) already invest in stocks, bonds, or managed funds, compared to just 28 per cent of women, which is quite a disparity.
“We believe closing the gender-related investing education gap will lead to more women finding impact investing to be increasingly appealing as they understand it can lead to more informed decision-making and better long-term risk-adjusted returns,” she said.
The study also revealed younger generations find the concept of impact investing more appealing, with almost three quarters of Australian Gen Zs and millennials (74 per cent) indicating this style of investing is of interest. That compared to 63 per cent of Gen Xers and 48 per cent of Baby Boomers who consider impact investing appealing.
In total, 63 per cent of Australians found the concept of impact investing appealing, which was an increase on the 57 per cent recorded the year prior.
“While our impact investing surveys show the appeal has increased over the years across all age groups, perhaps it should come as no surprise that the younger generations – those who stand to lose most from investments that do not consider a wider impact on society and the environment - find impact investing more appealing,” said Bratton Hughes.
Gen Z is also more willing to sacrifice returns in order to create a positive impact (56 per cent), compared to just 17 per cent for Baby Boomers.
Health care, disease prevention and cures top causes for Australian investors
The study also found that healthcare/ disease prevention was the cause that mattered most to Australians at 33 per cent, closely followed by environment/ climate change at 30 per cent.
When split by gender, Australian men were more likely to choose improved education (13 per cent), mitigating poverty (11 per cent), or racial equity and social justice (seven per cent) as their top cause, while women were more likely to pick healthcare/ disease prevention and cures as their top cause at 39 per cent.
Geographic rankings shift with addition of Singapore and declining interest in US
Australia now ranks third in terms of interest in impact investing, after overall interest rose six points over the past year. Singapore, a new addition to the survey, took the top spot in global rankings (69 per cent), displacing the UK (65 per cent) to number two, while Australia (63 per cent) displaced the US (56 per cent) from the next spot. German investors were the least interested in the concept of impact investing, with just over half of respondents - 51 per cent – indicating they find it of interest.
“Despite a challenging global economy, an evolving regulatory environment, and political pushback over the last year, interest in sustainable investing not only endures but has grown in most jurisdictions,” said Bratton Hughes.
