SmartCompany: Alternative Energy Investments - Wealthy investors turn to sustainable investments - by Madeleine Heffernan

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Alternative Energy Investments - Wealthy investors turn to sustainable investments - by Madeleine Heffernan

Speaking at the International Responsible Investment Conference in Melbourne this week, Christensen says high net worth individuals tend to display “toe-dip” behaviour in relation to sustainable investments: once in, they tend to increase their allocations over time. Sixty-one per cent of high net worth individuals in the European Union have allocated up to 5% of their portfolios to sustainable investments; more than a quarter have 10% to 50%. Younger generations with more than $1 million in disposable assets (excluding their primary residence) are more likely than their parents to adopt sustainable investment, Christensen says. Older generations tend to take a more conservative approach, but younger people are more willing to seek market rate returns while engaging in sustainability issues. For the Asia-Pacific, Eurosif research shows 13% of high net worth individuals have allocated part of their portfolio to green technologies and alternative energy sources. The research shows high net worth individuals in the European Union have shown the greatest enthusiasm for thematic investment, particularly in clean technology and water; while those in North America have shown the least.