The concept of sustainable investing has become a mainstream investment topic in Europe and this is no different in Asia, according a survey by Standard Chartered Private Bank.
It surveyed 416 high net worth individuals, with a minimum of $1m (£786,000, €879,000) in investments, residing in four Asian markets – China, Hong Kong, Singapore and India about sustainable investing.
Sustainable investing directs investment capital to companies that seek to combat climate change, environmental destruction, while promoting corporate responsibility.
The research found some 68% of (HNW) investors in Asia want to help create a better future through sustainable investing.
Respondents had the choice of more than one answer, as doing good while earning a profit (61%) and better returns (59%) made up the top three.
Rising allocation
Across Asia, averagely HNW investors said their portfolio allocation of sustainable investments had risen to 19% from 17% a year ago.
The highest average was in China, where it stood at 24%, a 4% increase from 2018.
The only country to have a reduction in sustainable investments was Hong Kong, which decreased 1% to 14%.
Over the next three to five years, Standard Chartered found total allocation will rise to 21% for Asian HNW investors.
Reasons for not engaging
The firm found that 106 HNW Asian investors from the survey were not engaging in sustainable investing.
The main barrier was lower returns versus mainstream investments (46%).
In second, lack of information about availability of sustainable investment opportunities decreased dramatically over the course of a year to 41% from 57%.
Only 6% of HNW investors in Asia did not know about sustainable investing.
Didier von Daeniken, global head of private banking and wealth management at Standard Chartered, said: “It is encouraging to know that investors have more access to information on sustainable investing.
“Nonetheless, some misconceptions still exist, and this is where banks play a crucial role to educate and help investors overcome their barriers to investing for impact.”
