Young investors for the most part place more emphasis on investing in companies that align with environment, social and governance initiatives than on returns. That’s according to the results of a recent survey from US Bank. 

Data show that GenZers — those born between 1997 and 2012 — “view wealth differently than older generations, [and] will sacrifice returns to invest in causes they believe in,” according to the survey.

“Younger generations are ready to put their money where their mouths are —even if it means they’ll have less of it as a result,” US Bank noted. 

The survey found that 85% of active Gen Z investors would accept a return on their investment that is significantly less than the 12% average return of the S&P 500 over the past 10 years; 30% would accept a 3% to 5.9% return; and 29% would accept a return of 6% to 8.9%

More than a third (38%) of active GenZ investors responded that a good quality of life, rather than solely finances, defines their view of wealth. Almost two-thirds (65%) of the young investors said they want to invest in causes they care about.

Younger investors came of age during uncertain economic times.

“It’s no wonder they are unsure about beginning an investing journey. But despite these headwinds, they are passionate about investing in causes they believe in and are seeking financial guidance,” stated Gunjan Kedia, vice chair of wealth, corporate, commercial and institutional banking at US Bank.

ESG in senior living and care

Some companies are listening, and some in senior living and care are ahead of the curve in weaving ESG into corporate culture. 

Sabra Health Care REIT, for example, made “forward leaps” last year in its ESG framework and e-initiative roadmap, Chair, President and CEO Rick Matros said in a press release issued in conjunction with the release of the company’s third annual sustainability report in July. The Irvine, CA-based real estate investment trust’s e-initiative roadmap was launched in 2021.

Toledo, OH-based Welltower, likewise, experienced a year of “significant achievement” across many ESG categories, according to the REIT’s annual ESG report, issued in July. 

Denver-based REIT Healthpeak Properties reduced greenhouse gas emissions by 4% in 2022, for an overall decrease of 43% over the past 12 years, on a like-for-like basis, according to its ESG report, published in June. 

Chicago-based Ventas was one of 15 organizations that earned the US Environmental Protection Agency’s Energy Star certification for more than 150 buildings in 2022. 

And Westlake Village, CA-based LTC Properties released its first ESG report in 2023.

Other senior housing and care-related REITs publishing reports include CareTrust REIT, The Ensign Group, National Health Investors and Omega Healthcare Investors.

At the operator level, also, communities are committing themselves to ESG.

Brookdale Senior Living is among operators issuing ESG reports, but smaller companies are getting in on the ESG action as well. 

In Vermont, nonprofit continuing care retirement / life plan community Wake Robin is racking up awards and recognition for its work in sustainability and environmental stewardship.

The CCRC earned a 2023 Sustainability Leadership Award from Casella Waste Systems for integrating the company’s zero-sort recycling, compost and municipal waste services into its 136-acre campus.

In Ft. Myers, FL, CCRC Cypress Cove has installed electric vehicle charging stations for residents, guests and employees.

Several senior living providers are looking to solar options as a way of benefiting their communities and also touting a commitment to environmental options that reduce their carbon footprint, the McKnight’s Tech Daily previously reported.

State-funded incentive programs, for example, have brought solar panels and solar water heaters to four senior housing communities operated by HumanGood in California. A fifth community is three-fourths of the way through a solar installation, and HumanGood hopes to retrofit 23 communities in total with renewable energy by the end of 2024.

See additional ESG-related coverage from McKnight’s here.