Less than a quarter of people in the UK invest in socially responsible funds, according to new research revealed by Investec. 

The specialist banking and asset management group has revealed that although 85 percent of people surveyed as part of the Making Pensions Greener White Paper said they are concerned about the environment, only 22 percent invested sustainably as a consequence.

Investec believes this exposes a “serious action-intention gap”, with most people convinced work needs to be taken to mitigate damage to the environment, but not prepared to risk long-term financial security to accomplish this.

Although 96 percent said they have changed their behaviour to help the environment, by doing things such as recycling, going vegan and thinking about package wastage, this did not extend to financial decisions. This viewpoint is reflected in pension contributions, with nearly a third of private pensions and a quarter of workplace pensions still investing in oil and gas. Interestingly almost half (47 percent) of those surveyed aren’t sure which funds their pensions are invested in at all.

Furthermore, while three in five employees with personal pensions want to invest in companies or funds that align with personal beliefs, over half of those questioned who knew where their pensions were invested chose not to invest in renewable energies.

The new white paper will promote the action Investec believes every investor needs to take to mitigate environmental issues, in order to highlight the vast gap between intention and action. It argues that environmental funds can offer investors a tangible way to address climate risk and decarbonisation.