A study commissioned by Delta Lloyd Asset Management has shown that 88% of Germans, 81% of Belgians and 71% of the Dutch are interested in the topics of climate change, the environment and sustainability, but investment funds investing in these areas are still pretty much unheard of.
A study commissioned by Delta Lloyd Asset Management and carried out by TNS NIPO has shown that 88% of Germans, 81% of Belgians and 71% of the Dutch are interested in the subjects of climate change, the environment and sustainability. In line with this, 85% of Germans worry about the environment (Belgians 82%, Dutch 78%). At the same time, most of the respondents in all three countries see themselves as environmentally aware (Germany 92%, Netherlands 86%, Belgium 93%).
Green investments not on the agenda
Despite this major interest in climate change, the environment and sustainability, investment funds investing in these areas are still pretty much unheard of: 96% of Germans, 94% of Belgians and 88% of the Dutch are completely unfamiliar with funds with these as a focus. Only 14% of Germans who already invest in funds have any experience, or have in the past had any experience, of green investments.
Germans have the most experience of green investments, but invest less
In Germany, 8% of respondents had some experience of green investments, followed closely by the Dutch with 7% and the Belgians with 5%. However, looking at the portfolios of private investors in these individual countries, it can be seen from those which currently include ecological investments, or which have used this option in the past, that the proportion of green investments is actually lowest in Germany, with an average of 11% of invested assets. This figure rises to 13% in Belgium and to an average of 27% in the Netherlands. The greatest incentive to invest in this segment is concern for the environment (Germany 61%, Netherlands 61%, Belgium 72%), followed by the view that this is a good long-term investment (Germany 55%, Netherlands 40%, Belgium 41%) and the prospect of good returns (Germany 34%, Netherlands 29%, Belgium 16%). It is interesting to note that with figures of 10%, German investment consultants are considerably less likely to recommend green investments than their Belgian (23%) and Dutch (20%) counterparts.
"Despite the shift in values towards greater environmental awareness that has been observed throughout the world, and particularly in the West, it has to be said that the issue has yet to reach the portfolios of private investors- possibly due to a lack of awareness or the impression that the risk is too great and potential returns too low", comments Ad Schellen, fund manager for the Delta Lloyd L Water & Climate Fund.
Christof W Göldi, chief executive of Delta Lloyd Deutschland AG, adds: "Companies which offer funds concerning climate change, the environment and sustainability clearly have a great deal of additional work to do to explain their products, particularly if they are to reach potential clients who do not invest at all as yet. We believe that this is an extremely important subject for the future and plan to increase our commitment greatly."
High proportion of people do not generally invest
The decisive factor in why so many of the respondents did not bother with green investments is that they do not generally invest in shares or funds at all (Germany 37%, Netherlands 60%, Belgium 39%). There are two further reasons: firstly, they do not feel that the returns will be high enough (Germany 10%, Netherlands 12% Belgium 15%) and secondly, they assume that such funds are little more than media hype (Germany 10%, Netherlands 12%, Belgium 15%). Given that a considerable proportion of respondents do not invest in shares or funds at all, it could be assumed that there are potentially large numbers of potential first-time investors here, who may be inclined to invest in green concepts. The survey, however, showed that only a very small percentage - 4% in Germany, 3% in the Netherlands and 9% in Belgium- are considering investing money in this area. Even amongst those who already invest in funds or shares, only 8% are planning any green investments.
Taxation issues have little bearing on investor behaviour
For 92% of Germans and 94% of the Dutch, taxation issues have no bearing on their decisions. In Belgium, this appears to be a more relevant factor, with 21% of Belgians describing it as important. As for expected return (Germany 12%, Netherlands 13% and Belgium 11%) and anticipated risk (Germany 8%, Netherlands 5%, Belgium 8%), the differences in the results obtained in the three countries were very slight. German respondents who currently invest see the matter differently- 18% believe that returns are likely to be lower and a similar number feel that the risk is higher, whilst German non-investors were less pessimistic, with figures of 7% and 8% respectively.
Investments in climate protection, the environment and sustainability may be able to help improve the situation. In Germany, 46% believe that a greater than 10% change can be achieved by this type of investment, with the figure slightly higher in Belgium at 48%, yet considerably lower in the Netherlands, with just 29%. German non-investors (56%) also take a more positive view of this than German investors (37%). As for the investment horizon, 82% of Germans see green investments as a long-term investment, putting them in the lead in this category, ahead of the Belgians with 71% and the Dutch with 50%. Most respondents were also of the opinion that green investments were just a passing trend, on the back of current strong media interest.
Educating people in being green is the key to improving the climate
Respondents in all three countries take the view that the key to solving the problem of climate change lies in teaching the next generation to be environmentally aware (Germany 31%, Netherlands 28% and Belgium 38%). This will encourage habits such as going on holiday less often, switching over to public transport, using solar or geothermal energy and making sure the house is properly insulated. Sorting and recycling rubbish leads the field in Belgium (72%, followed by 57% in Germany and 54% in the Netherlands), whilst switching off electrical devices is not such a widespread practice (36%) as it is in Germany (48%) and the Netherlands (47%). The Germans are more likely to leave the car at home from time to time (23%) than the Belgians (18%) and the Dutch (17%), yet less likely to have their house insulated (11% compared to 22% in the Netherlands and 18% in Belgium). Using alternative sources of energy is more common in Germany than in the other two countries (Germany 7%, Netherlands 2% and Belgium 2%). However, the Dutch are particularly unlikely to use public transport (8%, compared to 19% of Germans and 17% of Belgians).
Overall, two thirds of respondents said that they were influenced by the social debate on the subject of climate change (Germany 69%, the Netherlands 66%, Belgium 78%). Most of those who took part in the survey said that they followed the debate on the climate and corresponding green measures in the media and on the internet.
Methodological basis
The study was carried out from 11 to 19 August 2008 inclusive by TNS NIPO in the Netherlands, Germany and Belgium on the basis of an online survey. A random sample of adult respondents were interviewed in each country. In order to gain a representative sample of the population in the individual countries, the results were weighted for each country on the basis of the following parameters: number of investors, age and sex.
Read more about Delta Lloyd Asset Management and the Delta Lloyd L Water & Climate Fund at: www.waterandclimate.de/
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Further information:
Delta Lloyd Deutschland AG - Press and public relations
Martina Faßbender
Telephone: 0611 773 25 71
Fax: 0611 773 14 25 71
E-Mail: martina.fassbender@deltalloyd.de
Notes to editors:
About Delta Lloyd Asset Management
Delta Lloyd Asset Management (DLAM) is the Asset Manager of the Delta Lloyd Groep, one of the leading financial service providers in the Netherlands with activities in the fields of insurance, banking and asset management. With 39 billion euros in managed assets for internal and external clients at June 2008, DLAM is one of the top five asset managers in the Netherlands. The Asset Management business manages investment funds on behalf of Delta Lloyd, OHRA and Triodos and is active in the field of asset management for institutional investors.
About Delta Lloyd Deutschland
Delta Lloyd Deutschland is a 100% subsidiary of the Delta Lloyd Group, Amsterdam, and therefore part of the British Aviva Group. The company offers a one-stop shop for a wide range of financial, investment and provident products and also provides expert advice on all financial matters. The Delta Lloyd Group in Germany is made up of pension fund Delta Lloyd Leben, corporate pension scheme consultancy Hamburger Leben, the group's own private bank and a real estate financing broker.