Jan. 22, 2008 -- Individual investors view the environment as a major long-term investing opportunity, according to a new survey by Allianz Global Investors. About half (49%) of the 1,003 investors surveyed said that over the next year they were likely to invest in a company or mutual fund focused on environmental solutions. Nearly one in five (17%) said they have already made such an investment.

Respondents expressed strong familiarity with environmental issues. Seventy-three percent said they knew at least a fair amount about the greenhouse effect and 73% said they knew at least a fair amount about the Energy Star energy-efficiency rating. That compares with 77% who said they knew at least a fair amount about mutual funds.

Sixty-two percent of investors said they consider solar energy a major investment opportunity, followed by wind power (57%), hybrid vehicles (53%), and water purification (50%). Ethanol (cited as a major opportunity by 37% of investors) and eco-tourism (17%) were the least highly rated sectors.

"As an investment, the environment has all the hallmarks of information technology in the early 90s -- popular attention, robust demand, high innovation, abundant capital, an enduring need, and rising valuations," says Bozena Jankowska, lead portfolio manager of the Allianz RCM Global EcoTrends Fund. "We believe that we are in the early stages of a long-term secular up-cycle for environment-related companies."

The survey also found that while the environment represents a major financial opportunity for some companies, it should be an essential operating consideration for most. Eighty-four percent of the investors surveyed believe a business's profitability will be increasing linked to its ability to address resource sustainability issues. More than two-thirds (67%) of the investors surveyed strongly or somewhat agreed with the statement that "global warming is a serious threat that businesses need to address in order to be successful."

"When it comes to the environment, social value and economic value are not mutually exclusive. In fact, they are increasingly linked," says Blake Moore, managing director and CEO of Allianz Global Investors U.S. Retail. "The greater the focus on the environment, the greater the need for safeguarding or remediation, and that equates to innovation and robust demand for services."