Over half of people in Hong Kong and Singapore are still convinced that investing in sustainable products would mean having to compromise on returns.
According to a report by SJP Asia, this is true for 60% of Hong Kongers and 53% of Singaporeans.
But it doesn’t mean that investors do not have any appetite for ESG investments.
The wealth management giant found 60% of people in Hong Kong and 57% in Singapore would consider sustainability when making investment choices, with 43% and 40%, respectively, stating that their interest in such vehicles is increasing.
Robert Gardner, director of investments at SJP said that market data has debunked the myth that investors have to make any compromises when opting for sustainable options, as it shows a significant correlation between investments with strong ESG ratings and better performance.
ESG ranking
But priorities differ among Hong Kongers and Singaporeans when it comes to sustainability and ESG.
People in Hong Kong believe social issues are the most important problems to tackle (40%), followed by environmental responsibility (38%) and governance (22%).
While in Singapore, the biggest concern is environmental responsibility (43%), with social issues (32%) and governance (25%) making up the top three.
The discrepancies in priorities likely reflect the social situation in Hong Kong which, for the last year and half, has seen increasing political unrest and protests against China’s role in the special administrative region.
SJP’s study polled 1,019 investors in Hong Kong and 1,045 in Singapore about their views on ESG investing.
