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What Issues Do Values-Driven Investors Care About?

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What Issues Do Values-Driven Investors Care About?

The Briefing

  • Values-driven investing has become popular across a variety of age groups
  • However, different age groups value different issues over others
  • Young investors (age 25-39) are most concerned about climate change and plastic in the ocean
  • In contrast, investors aged 55+ care more about data fraud and gun control

What Issues Do Values-Driven Investors Care About?

Contrary to popular belief, environmental, social, and governance (ESG) investing isn’t just for the younger generation.

In fact, more than 80% of investors aged 40+ are interested in aligning their investment portfolios with their personal values, which is only around 10 percentage points less than the younger demographic (aged 25-39).

However, while overall intent to invest in the greater good is consistent across the board, the top concerns among investors vary, depending on age.

Here’s a look at the top issues that investors want addressed in their portfolios, by age group:

Age Group
Issues Investors Want Included in Their Portfolio25-39 years old40-54 years old55+ years old
Global warming/ climate change34%34%27%
Impact of plastic on the oceans21%30%26%
Sustainability24%23%17%
Data fraud or theft14%20%29%
Gun control13%20%22%

Young Investors Care More About Long-Term Issues

As the table above shows, the top concern among investors aged 25-39 is climate change, followed by sustainability in general.

This makes sense, considering that younger investors will most likely be around to deal with the consequences of long-term issues like climate change and plastic pollution.

In contrast, investors with a shorter time horizon to retirement (aged 55+) are more concerned with immediate threats like gun control and data fraud.

How To Execute on Values-Driven Investments

It’s clear that investors of all ages are interested in values-driven investing—but how can investors take action to build a portfolio that reflects their beliefs?

There are two approaches to building a sustainable investment portfolio:

  • Exclusionary investing
    Also known as negative screening, or divesting. This is when investors screen out industries that go against their values, such as tobacco, gambling, or fossil fuels.
  • Inclusionary investing
    Also knowns as positive screening. This is when investors formally consider ESG factors in their research process under the assumption that companies with strong sustainability practices can outperform their industry peers over time.

While exclusionary investing is the more common approach, research on the effectiveness of inclusionary investing has been overwhelmingly positive.

» For a more in-depth look on the top of values driven investing, read our full article The Rise of the Values-Driven Investor

Where does this data come from?

Source: New York Life, 2019.
Notes: Data was derived from a 2019 study conducted by New York Life Investments,
in partnership with RTi Research.

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Datastream

Visualizing Earth’s Global Ice Loss Between 1994-2017

In just over two decades, the planet has seen 28 trillion tonnes in global ice loss. 58% of this ice loss occurred in the Northern Hemisphere.

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The Briefing

  • Due to global warming, 28 trillion tonnes of ice have melted in just over two decades
  • Over half (58%) of this global ice loss occurred in the Northern Hemisphere

Visualizing Earth’s Global Ice Loss Between 1994-2017

Nearly 70% of the Earth’s freshwater is locked up in glaciers and ice caps, ground ice, and permafrost. However, this ice is melting at an unprecedented rate.

Based on data from a new scientific survey, this visualization reveals that 28 trillion tonnes of Earth’s ice has been lost between 1994 and 2017.

How Much Ice Is Being Lost Exactly?

Figures at such scales can be difficult to wrap our heads around. For the record, one billion tonnes of water is equal to 400,000 Olympic swimming pools.

It’s then a bit easier to comprehend why, when multiplied tens of thousands of times, this much melted ice—specifically, grounded ice—has resulted in global sea levels rising by 34.6mm on average.

Cryosphere categoryIce typeChange (1994-2017)
Arctic sea iceFloating7.6 trillion tonnes
Antarctic ice shelvesGrounded6.5 trillion tonnes
Mountain glaciersGrounded6.1 trillion tonnes
Greenland ice sheetGrounded3.8 trillion tonnes
Antarctic ice sheetGrounded2.5 trillion tonnes
Southern Ocean sea iceFloating0.9 trillion tonnes

Over half (58%) of the ice loss occurred in the Northern Hemisphere, from Arctic sea ice and also grounded ice previously trapped in the Greenland ice sheet.

In fact, the rate of ice loss has risen from 0.8 trillion tonnes to 1.2 trillion tonnes per year, an increase of 57% since the 1990s.

The Impacts of the Ice Meltdown

Rapidly disappearing sea ice has severe impacts on the environment, both in the short and long term:

  • Wildlife habitat loss
  • Coastal erosion
  • Changing ocean currents
  • Extreme temperatures

While rising temperatures are behind most of this historical global ice loss, it’s worth noting that lower levels of ice lead to a positive feedback loop. Less ice means less of the sun’s heat is reflected away from the Earth, instead being absorbed back and further amplifying the global warming effect.

>>Like this? Then you might like this article on Mapping Territorial Claims in Antarctica

Where does this data come from?

Source: Slater, T. et al. “Review article: Earth’s ice imbalance”, The Cryosphere (2021)
Notes: Data from the scientific survey is based on satellite observations and numerical models. The metric measure of a “tonne” (1,000kg) has been used throughout for accuracy.

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Coinbase Experiences Brisk User Growth Ahead of IPO

Coinbase, America’s largest cryptocurrency exchange, saw a 117% growth in transacting users from Q4 2020 to Q1 2021.

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coinbase user growth

The Briefing

  • Coinbase is the largest cryptocurrency exchange in the U.S.
  • The company added 3.3 million transacting users in Q1 2021 – a 117% increase
  • $133 billion in assets were added to the platform, totalling $223 billion in Q1 2021

Coinbase Experiences Brisk User Growth Ahead of IPO

A week before its initial public offering (IPO), Coinbase reported significant user growth for the first quarter of 2021.

In a report released on April 6, the cryptocurrency exchange claimed to have an estimated 56 million verified customers in Q1 2021—that’s an additional 13 million since Q4 2020.

What is Coinbase?

Launched in 2012, Coinbase is the largest consumer-facing cryptocurrency exchange in America.

The company offers a variety of products, such as an advanced trading platform, crypto wallets for retail investors, savings accounts for institutions, and even its own stablecoin that’s backed by the U.S. dollar.

A Surge in Monthly Users and Assets

In Q1 2021, Coinbase saw a 117% increase in transacting users compared to Q4 2020, from 2.8 million to 6.1 million. That’s the highest jump in users in the last three years:

QuarterMonthly Transacting Users% Change
Q1 20182,700,000--
Q2 20181,200,000-55.5%
Q3 2018920,000-23.3%
Q4 2018850,000-7.6%
Q1 2019800,000-5.9%
Q2 20191,300,00062.5%
Q3 20191,200,000-7.7%
Q4 20191,000,000-16.7%
Q1 20201,300,00030.0%
Q2 20201,500,00015.4%
Q3 20202,100,00040.0%
Q4 20202,800,00033.3%
Q1 20216,100,000117.9%

In addition to its growing user base, the company also reported a 147.8% uptick in assets on the platform in the last quarter, from $90 billion to $223 billion.

QuarterAssets Held on Coinbase% Change
Q1 2018$13 billion--
Q2 201812.9 billion-0.8%
Q3 201811 billion-14.7%
Q4 2018$7 billion-36.4%
Q1 2019$8 billion14.3%
Q2 2019$21 billion162.5%
Q3 2019$17 billion-19.0%
Q4 2019$17 billion--
Q1 2020$17 billion--
Q2 2020$26 billion52.9%
Q3 2020$36 billion38.5%
Q4 2020$90 billion150.0%
Q1 2021$223 billion147.8%

Industry experts believe this strong start to the year is a good indicator of the company’s future profit potential.

For instance, the investment bank DA Davidson raised Coinbase’s share price target from $195 to $440 after seeing the company’s Q1 results.

>> Liked this? Take a deeper dive into institutional trading volume on Coinbase.

Where does this data come from?

Source: Company filings via The Block

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