Investors in Asia are planning to increase the proportion of sustainable investments in their portfolios to an average of 19 per cent over the next three years, according to a Standard Chartered Private Bank survey.
Chinese investors are spearheading the way with an expected allocation of 23 percent by 2021, reports the Singaporean Business Times. For the survey, the bank interviewed over 400 investors in Singapore, Hong Kong, China and India that have a minimum US$1 million in investments (excluding real estate). They were not only asked about their willingness to invest but also about their motivations behind sustainable investing and how well they understand it.
Investors in Singapore had the best insight and understanding of sustainable investing. 31 percent among the 79 percent currently involved in sustainable investing, knew well what they were investing in. The survey found a significant difference in the motivation behind the investment with most Singaporeans saying they were motivated by doing good whilst profits were leading the motivation for Chinese and Hong Kong investors.
These investors are relying on studies that show that over 90 percent of investment portfolios with a sustainable investment concept have the same or better returns than a normal investment portfolio. The Singaporean Business Times cited combined findings of over 2,000 studies across over 40 years, as noted in a 2015 paper published in the Journal of Sustainable Finance & Investment.
Other key highlights of the report included the finding that “green” will go mainstream, where data on sustainability approaches and performance will be as important as financials of companies and funds and that there is an emerging SRI-fintech feedback loop.
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