The study, carried out by law firm Michelmores LLP, shows that although 73 per cent of affluent millennials with more than £25,000 worth of investable assets feel a sense of responsibility to use their money to have a positive impact on the world, only 16 per cent have invested in sustainable or social impact funds.

Michelmores believes this is due in part to a lack of knowledge about the potential value of these type of investments, as more than three in five (62%) of affluent millennials interviewed say that impact investments are less profitable than other types of investment, while 14 per cent say that they don’t know whether they are less profitable.

Richard Cobb, Partner at Michelmores LLP, said: “While affluent millennials recognise the importance of impact investments, this rarely translates into action. Studies show that social funds can be just as financially beneficial as conventional investments, yet our research shows that confidence to invest in a sustainable way is relatively low.”

“In order to make sure millennial investors are able to align purpose and profit, it is critical that high-quality data surrounding impact investing’s positive financial return is more accessible. With the right strategy in place, there is no reason why social funds can’t be as profitable as traditional investment, if not more so. Financial advisors have a key role to play here in educating their clients, and when we see impact investment regularly feature as part of the conversation, we expect it to take off in a big way.”