Big money investors want to go green
Over 90% of institutional investors want green investments in their portfolio, according to a new study.
Research commissioned by the New Energy World Network (NEWN) found more than nine in ten private equity, pension, insurance and venture capital funds would like to have some exposure to renewable energy, clean technology, and sustainability-related investments.
Two thirds (69%) said they have already made green investments or are planning to do so in the next three years.
The main motive for investing in green funds is the potential to generate high financial returns.
However, 64% also cited environmental responsibility as a reason for making eco-friendly investments.
A mere 6% said they do not want any exposure to the green sector.
“There is strong expectation in the private equity industry that the performance of green investments will improve over the next few years,” NEWN said in a statement.
“The challenge for green private equity and venture capital managers is to accelerate the current levels of interest and future expectations into actual commitments into their funds sooner rather than later.”
The study was conducted by AltAssets, who surveyed 110 institutional investors.