ESG trend is gaining momentum in P2P investing
According to the latest Robo.cash platform survey, a quarter of P2P investors are actively involved in the ESG trend. At the same time, most respondents take this criterion into account when choosing a P2P platform.
More than half of the P2P investors surveyed are familiar with the concept of ESG investing (a form of sustainable investing that considers environmental, social and governance factors to judge an investment’s financial returns and its overall impact). 24% actively implement these practices in their investment experience, and almost one in three of them is German.
As the main incentives for ESG investing, respondents choose aligning investment strategies with personal values (32%) and striving to make the world a better place (26%). Diversification of investments and the search for new sources of income score much lower. 3 respondents noted that ESG is just a marketing ploy.
Resource efficiency and climate change are the top areas for ESG investing (28%). In second place are social equity and inclusion (16%). Personal investor preferences in this sense are consistent with general principles. 30% of respondents would prefer to invest in environmentally significant projects, another 25% - in socially significant ones. 16% indicate the importance of a transparent company image that an ESG strategy can provide.
There is also potential for further development of ESG in the P2P industry. Only 10% consider this criterion among the top 3 factors when choosing a P2P platform, but at the same time, another 42% still take it into account. When asked if the platform ESG initiatives can motivate them to invest more in it, 18% of respondents reply positively. The close answer “rather yes” (36%) also opens up the possibility for much more ESG adoption among European P2P investors in the future.