Morgan Stanley report on Wall Street sustainability, millennials

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Morgan Stanley report on Wall Street sustainability, millennials

Millennials aren’t just eating avocado toast and snapchatting, they’re also driving the growth of a $9 trillion market on Wall Street: sustainable investing.

Sustainable investment products, which aim to deliver outsize returns and remedy societal and environmental ills, have grown at a rate of more than 33% between 2014 and 2016 in the US, according to a newly released report by Morgan Stanley. The market for such products, as a result, has grown from $6.57 trillion to $8.72 trillion.

Morgan Stanley’s “Sustainable Signals” report, a sequel to a 2015 report on the subject conducted by the bank’s Institute for Sustainable Investing, examines the findings of an impact-investing-focused survey of 1,000 active investors across the age spectrum. It found that millennials have underpinned the growth of the market for impact investing and the adoption of sustainable portfolio options and other products such as green bonds and green ETFs.

Millennials “are twice as likely as the overall pool to invest in companies or funds that target social or environmental outcomes,” the report said.  Millennial interest has grown since 2015. From 2015 to 2017, interest in sustainable investing grew from 84% to 86%, while those who said they were very interested in impact investing grew by 10 percentage points, to 38%.

According to the report, the rise of interest in sustainable investing stems from sustainable behavior in the consumer space. According to the report, millennials are twice as likely to buy goods from sustainable companies than the total population. This behavior has been bleeding into financial services, according to Audrey Choi, chief sustainability officer and chief marketing officer at Morgan Stanley.

“As widespread attention to sustainability continues to increase, consumers and investors alike are now more than ever factoring sustainability issues into their investment decisions,” she said in a press release emailed to Business Insider.

“What we are seeing right now is just the tip of the iceberg,” Amit Bouri, cofounder and chief executive officer of the Global Impact Investing Network, told Business Insider. “In the coming years, budding interest will translate into more and more concrete action on the part of financial-services firms.”

This, according to Bouri, will pour unprecedented amounts of capital into funds focusing on environmental and socially beneficial objectives. Already, money managers such as UBS have taken key steps to provide clients more impact-investing offerings.

Read more: Morgan Stanley report on Wall Street sustainability, millennials – Business Insider