Investors favour green and community schemes

Investors favour green and community schemes

The popularity of green energy and projects that benefit communities has emerged as the most popular in a survey of UK adults.

Of the 1,627 people asked where they would like to see their funds invested, 19 per cent responded by targeting green and community projects.

This category of investment was more popular than investments in either large private businesses, which attracted 18 per cent of respondents, or small and medium-size business funds, at 16 per cent. 

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Oaksmore Isa, which undertook the research, believes the appeal of green energy and projects that deliver tangible benefits to communities is a great pull, encouraging people who might otherwise not be inclined to invest to speculate.

The survey’s authors believe Innovative Finance Isas (IFISAs) are the ideal vehicle for would-be investors with an interest in green and community projects.

Reuben Skelton from Oaksmore Isa said: “The IFISA model gives providers the flexibility to find schemes that deliver on these needs expressed by potential investors.

“For example, our own scheme allows people to invest in the renovation of heritage property, bringing beautiful old buildings back to use.

“This not only supports the country’s national heritage, but also delivers value back into communities by creating places to live and work. At the same time, investors appreciate the tangible nature of property investment and feel comfortable with the level of risk and security that property provides.”

Mr Skelton added that investors are likely to be particularly keen on projects that would benefit where they live or know. He said: “It’s easier to visualise the impact, and assess the risk, in an area we know well.

"This underlines the true motivations of such investors who want to feel more personally connected to their investments.”

Ben Sherwood, a director at Satis Asset Management, is seeing more interest from investors in green and sustainable schemes from investors.

He said: “We’re seeing a lot of interest in ethical, sustainable and governance funds from all investors, but particularly from younger clients.

“Interestingly, smaller investors seem less interested in so-called local projects than particularly wealthy investors, being keen on the concept of helping the environment and society.”