ESG investing statistics: key UK trends and insights

Environmental, Social, and Governance (ESG) criteria have become integral to investment strategies, corporate policies, and consumer choices worldwide.

In the UK, the emphasis on sustainable and ethical practices has grown significantly, reflecting a broader global trend towards responsible business conduct.

This article delves into the current landscape of ESG in the UK, using the latest data and statistics.

The rise of ESG investing in the UK 

The UK's investment community has increasingly embraced ESG principles.

A survey by Finder UK revealed that over half (57%) of UK investors hold ethical or ESG investments.

Notably, Generation Z leads this trend, with 66% expressing interest in ESG investing, while only 11% of Baby Boomers share this inclination.

Despite this growing interest, active participation in ESG investments remains relatively low.

As of 2025, only 4% of Brits have actively chosen to make ethical or ESG investments.

Consumer attitudes towards ESG 

Consumer behaviour in the UK reflects a strong preference for companies with robust ESG practices.

A significant 76% of consumers are willing to cease purchasing from companies that treat the environment poorly. Additionally, 88% express greater loyalty towards companies that support social and environmental initiatives.

In the financial sector, ESG considerations are becoming pivotal. Approximately 44% of surveyed consumers consider ESG issues crucial when selecting a financial provider, and one-quarter might switch banks over ESG concerns.

Corporate implementation of ESG practices 

UK-based companies are increasingly proactive in implementing ESG initiatives.

A study by Thomson Reuters highlighted that 40% of UK respondents reported their company has established a dedicated ESG department or team, compared to 24% in North America.

Furthermore, 39% of UK organisations have appointed ESG officers or specialists to manage these initiatives, whereas only 16% of North American counterparts have taken similar steps.

Challenges and criticisms 

Despite the positive trends, challenges persist.

Scepticism towards ESG is growing, with a decline in popularity among investors.

In the UK, 53% of investors considered ESG factors in 2023, down from 65% in 2021.

Additionally, a survey from Edelman found that almost three out of four institutional investors do not trust businesses to achieve their commitments in ESG, sustainability, or diversity and inclusion.

Performance concerns also arise. Investors in "green" or "sustainable" funds could have lost nearly £22 billion over the past five years compared to market trackers.

Analysis of 21 UK green funds shows underperformance by 3.8% per year since 2019, amounting to £1.6 billion in losses.

This trend, if replicated across all responsible investment funds, could lead to a £21.6 billion shortfall.

Global ESG investment landscape 

Globally, ESG investments have seen remarkable growth.

According to BBVA, the total market for ESG investments reached $2.5 trillion in 2022 and continues to grow.

Furthermore, the global ESG asset management market is projected to soar to $56.1 trillion in the next few years, reflecting the escalating dedication to ESG investment strategies and the rising need for sustainable investment opportunities. 

Investor demand and corporate response 

Investor demand for ESG is on the rise worldwide. Approximately 42% of global investors prioritise client expectations and reputation when making ESG decisions, up from 37% in 2021.

European investors lead this trend, with 31% prioritising ESG, compared to 18% in North America and 22% in Asia-Pacific. Vena Solutions 

In response, corporations are enhancing their ESG disclosures. Currently, 90% of S&P 500 companies release ESG reports, indicating a commitment to transparency and accountability in sustainability practices.

The role of ESG rating agencies 

ESG rating agencies play a crucial role in assessing and benchmarking corporate sustainability performance.

Organisations like Sustainalytics, MSCI, and the London Stock Exchange Group (LSEG) provide ESG scores that measure a company's performance on and management of material ESG risks, opportunities, and impacts.

These ratings inform investors and stakeholders about a company's commitment to sustainable practices. 

Final thoughts

The integration of ESG criteria into investment decisions, corporate strategies, and consumer preferences signifies a transformative shift towards sustainable and responsible business practices in the UK and globally.

While challenges, scepticism and performance concerns persist, the main trend reflects a growing commitment to environmental stewardship, social responsibility, and robust governance.

Seek expert ESG financial advice

Given the complexities involved, seeking professional financial advice is crucial for investors who aim to align their portfolios with ESG goals effectively.

Financial advisers can provide clarity, helping individuals navigate ESG investments confidently, ensuring their financial strategies reflect both ethical values and long-term objectives.

Let Unbiased match you with a qualified financial adviser today.