CMC Invest ventures into the ESG space amid high investor demand
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CMC Invest, one of the largest stock trading platforms, has ventured into the environmental, social, and governance (ESG) industry. The stock brokerage platform will allow investors to display ESG data within its mobile investing platform, offering shares, exchange-traded funds (ETFs), and investment trusts.
CMC Invest ventures into ESG
For ETFs and investment trusts, the platform will have an overall sustainability rating, ESG risk scores, and other product areas where these funds are involved. In the case of shares, the data will also show ESG risk scores, a controversy category rating, and other product areas where the company might or might not be involved.
CMC Invest added the platform to this ESG feature to offer ESG information to customers concerned about ethics as much as they do about profits. Depending on customer feedback, the company has already released two versions of this feature, and it has added another upgrade that will be released in 2023.
The head of CMC Invest, Albert Soleiman, noted that allowing customers to access actionable data and insights will be possible to deliver a personalized experience. It would also be possible for customers to achieve their long-term investment goals.
Growing demand for ESG
CMC Invest added the ESG feature after high demand from retail and institutional investors. BlackRock, one of the largest asset management companies, revealed ESG-centric investment plans. However, investment management companies face backlash from some of their largest investors.
One of the surveys conducted in the UK by Finder found that 77% of investors in Britain were interested in ethical investing. The head of Product at CMC Invest, Alister Sneddon, noted that the company’s research had found that customers wanted more transparency on the effects that companies had globally and in society.
CMC Invest is joining the growing list of retail trading platforms bringing ESG data closer to their investors. Swissquote also started displaying ESG data on most stocks provided by the platform. Moreover, other brokerage platforms also mentioned the rising demand for ESG in retail investments.
“It’s no longer purely about maximizing a return; investors want to achieve long-term goals and help to deliver good outcomes that they are proud of. As such, investments are becoming a reflection of people’s own values and principles,” Sneddon added.
Sneddon also added that 83% of customers said their personal ethics sometimes influenced their purchase decisions. Therefore, it was difficult to ignore this demand. Nevertheless, CMC Invest was committed to providing the support and the data needed to help customers make informed decisions.
