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Report
en_GB
There is significant consumer interest in investing sustainably. Most UK investors have good intentions in this area, with 64% keen to invest in ways that have a positive social or…
UK
Sustainability
Savings and Investments
simple
UK Sustainable Investing Market Report 2025
"Make sustainable investments more visible and accessible to capitalise on a high level of investor interest and boost capital flows into the sector."
Sarah Hitchcock, Associate Consultant – Financial Services
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EXECUTIVE SUMMARY
What you need to know
Outlook for sustainable investing
Opportunities
Address visibility and accessibility to boost uptake
A sustainability specialist would flourish in the platform space
SDR presents numerous opportunities
Potential to gain over 2 million new female investors within the next year
THE MARKET
Snapshot – market size
Value of responsible investments stagnates, as confidence weakens
Graph 1: value of responsible investments, by funds under management and share of total industry, 2020-25
Reducing barriers to access will switch the direction of flow
Graph 2: net sales of total retail funds versus responsible investments, 2020-24
Higher inflation and cuts to savings rates prompt more people to consider investing
AI boom raises bubble concerns
New SDR labels will make it easier to identify and select sustainable funds
Fairly limited uptake so far, but many positive signs for future growth
If used widely, SDR labels will raise the profile of sustainability
Environmental concerns are widespread among UK consumers
Graph 3: agreement with the statement “I worry for the future of the environment in the UK, % of adults, 2025
Consumers expect brands to give greater priority to sustainability over the next few years
THE CONSUMER
Importance of sustainability
The market for sustainable investments offers good growth potential
Graph 4: ownership of investments and interest in investing, 2025
Under-45s are particularly keen on making a positive impact
Sustainability is important, but only after other considerations are taken care of
Graph 5: ranking of factors, by importance to investors, 2025
Enhance navigation tools to engender greater customisation
Investor familiarity with sustainable strategies
Most investors are aware of at least one sustainable investment approach
Graph 6: familiarity with one or more sustainability approaches, % of investors/prospective investors, 2025
Nearly half of investors have used a sustainable approach
Assessing the effectiveness of SDR labels
Impact labels are the most persuasive
Impact and Focus labels attract the greatest interest
SDR labels will have a positive impact on future behaviour
Key limitations of the labels: indistinct and unclear
More could be done to raise awareness among the wider public
Interest and confidence in sustainable investing
Many investors want guidance and better information
Opportunity for a digital advice or guidance service to specialise in sustainable investments
Platforms must provide clear and accessible info on sustainable funds
Provide regular updates via succinct and personalised communications
Room in the market to specialise
Younger, wealthier investors are strongly in favour of using a specialist platform
Most under-45s have faith in the long-term performance of sustainable funds
INNOVATION AND MARKETING
The Big Exchange stands out as a specialist sustainability platform
Information and access to sustainable investments vary by platform
A variety of approaches used
Opportunity for Willis Owen to grow its presence in the sustainable investing market
Triodos Bank’s Impact Investment range
APPENDIX
Report scope and market definition
Product definitions
The market
The Investment Association data on responsible investments
Market size: funds under management
Market size: net sales
The consumer
Consumer research questions
Consumer research methodology
CHAID analysis methodology
CHAID analysis: table output
UK generation groups
Abbreviations and terms
Abbreviations
UK Sustainable Investing – Trends and Insights
There is significant consumer interest in investing sustainably. Most UK investors have good intentions in this area, with 64% keen to invest in ways that have a positive social or environmental impact. However, issues around transparency and firms making misleading claims have undermined trust in the market and held back its growth.
New rules to tackle greenwashing, and a standardised labelling system introduced in 2025, go some way to restoring confidence. It also provides an opportunity for sustainable investments to grow their share of retail funds, as asset managers and platforms and other distributors improve visibility, searchability and access.
Prospects for the market are generally positive. However, a potential threat to expansion is a seismic shock to the stock market, such as that caused by COVID-19 in 2020, the financial crisis in 2008-09 and over-valued internet companies in 2000.
Falling savings rates over the past year have increased interest in alternative asset classes, such as equity, and sustainable investments in particular.
This Report Looks at the Following Areas:
Growing awareness of the social and environmental impact of companies underpins strong consumer interest in sustainability, while new rules to tackle greenwashing aim to improve trust
The value of responsible funds under management (FUM) has grown since 2000 but remain small as a proportion of total retail FUM
New Sustainability Disclosure Requirements (SDR) provide expansion potential, but success depends on the visibility and effectiveness of new sustainability labels, as well as improvements to platform search functionality
Consumer analysis of investor familiarity with, and usage of, sustainable investing strategies, as well as where sustainability ranks in their overall investment approach
Gaps in understanding, and issues around trust and accessibility, create opportunities for both traditional advisers and digital advice/guidance services to help investors build and maintain sustainable portfolios.
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