CMC Invest enters into ESG Space based on high demand from investors

CMC Invest, a stock trading platform, launched in October now displays ESG data on its mobile investing app for shares, ETFs, and investment trusts.

ETFs and investment trusts can be rated on their overall sustainability and ESG risk scores. The platform also displays the most contentious product areas. ESG risk scores and controversy rating are included in shares. The data also includes the contentious product areas that the company is or is not involved.

This month, the platform added a new feature that provides ESG information to customers. It is designed to help them understand ethical and financial concerns. Based on customer feedback, it has created two versions of the feature and will release a new enhancement in the coming year.

The Head of CMC Invest UK, Albert Soleiman, states that “By bringing actionable data and insights to our customers, we can deliver a more personalized experience. We want everyone to achieve their long-term goals knowing their investments will continue to support their beliefs and principles”.

After growing demand from institutional and retail investors for this information, the platform added ESG features to its platform. BlackRock, which manages investments totalling $8 trillion, has announced significant ESG-centric plans. The ESG-centric stance of the investment manager is being challenged by some major investors.

CMC isn’t the only retail trading platform that offers ESG data to investors. Swissquote recently started showing ESG data for many stocks on its platform. Other brokers also agree with the increasing demand for ESG in retail investing. Finder conducted a survey in the UK and found that 77 per cent of Brits now consider ethical investing.

Soleiman added: “We believe sustainability and ESG investing are the beginnings of a bigger trend. Over time, we expect to see an increase in impact investments, where not doing harm will no longer be the acceptable ‘highest standard.’ Instead, we’ll see consumers pushing to proactively do good in the world and their communities through investing.”

CMC Invest, a London-based group, was launched to offer stocks that are listed in the US and UK. It plans to add mutual funds and a US currency wallet to its offerings. Although the CMC made progress in the ESG space as the group did, this latest move was the CMC Invest UK’s first major EGS initiative.

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