In a new report, The Rise of the Millennials, Standard Life Investments said new products will need to be created in order to meet millennial-driven demand for responsible investment opportunities.
Standard Life Investments' head of responsible investment, Amanda Young, said financial products are going to have to align with the beliefs and priorities of millennial investors.
“As such, the investment industry will need to consider and develop innovative ways to invest that reflect these changing attitudes," she said.
“Of course, returns will remain important. However, millennials are increasingly demanding investment solutions that ensure their money also has a positive environmental and social impact.
“These factors will create challenges and sizeable opportunities for the investment management industry,” Ms Young said.
Standard Life Investments, in a recent YouGov poll, found that 63 per cent of respondents believe values-based investing delivers the same or better financial outcomes.
A further 48 per cent of respondents affiliate with some sort of principles-led investment, with approximately 45 per cent feeling strongly about the environment.
The survey also found that 47 per cent have boycotted a company or brand because they disagree with its ethics or behaviour.
“For the investment industry, the need to be as transparent and accessible as possible will be a key driver in building trust with millennials,” said Ms Young.
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