January 29, 2008

Most Investors Say Companies Focus On Green For PR Value

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Investors view the environment as a major long-term investing opportunity, according to the results of a survey of investors released by Allianz Global Investors.Of the 1,003 investors surveyed, 49 percent said that over the next 12 months they were likely to invest in a company or mutual fund looking to provide solutions for environmental problems; 17 percent reported having already made such an investment.

Investors expressed strong familiarity with environmental issues. Seventy-three percent said they knew at least a fair amount about the greenhouse effect and 73 percent said they knew at least a fair amount about the Energy Star energy efficiency rating. That compares with 77 percent who said they knew at least a fair amount about mutual funds.The survey found that while the environment represents a major financial opportunity for some companies, it should be an essential operating consideration for most.Eighty-four percent of the investors surveyed believe a business’s profitability will be increasing linked to its ability to address resource sustainability issues. More than two-thirds (67%) of the investors surveyed strongly or somewhat agreed with the statement that “global warming is a serious threat that businesses need to address in order to be successful.”

While investors believe the environment is a serious business issue, they also believe that many companies have yet to view it that way. Nearly eight in 10 investors (78%) say most companies today focus on environmental issues for public relations value rather than financial value.

Seventy-three percent of investors said they would need to consult a financial advisor for help investing in the environment. Interestingly, among investors with a financial advisor, 83 percent said their advisor had yet to recommend an environment-related investing opportunity.

The poll was conducted via the Internet between December 14 and December 20, 2007, by GfK Roper Public Affairs & Media, a division of GfK Custom Research North America. Participants had to be age 25 or older and have primary or shared responsibility for investment decisions in households with financial assets of at least $100,000. The sample was weighted to match the characteristics of the total online population in terms of gender, age and region, according to the U.S. Census.

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