Asia-based investors are seeking to allocate more money to impact investing, according to a survey by Lombard Odier.

The survey, which polled more than 100 of Lombard Odier’s High Net Worth Individual (HNWIs) and Ultra High Net Worth Individual (UHNWIs) clients in Asian markets found that almost every respondent agrees that social responsibility has become important and, moreover, most (97.2 percent) are willing to increase their allocations to impact investing.

Evaluating Traditional Investments

When reallocating wealth to impact investment, the majority of respondents (60.2 percent) said they would shift money from traditional investments (equities and fixed income), while some would prefer to reallocate money from charitable donations. 

Despite the clear interest in impact investing, most respondents said they would prefer to allocate less than 50 percent of their overall wealth to impact investing, while nearly half of the respondents (49.1 percent) said they would allocate less than 15 percent of their wealth into the asset class.

Young Investors Understand

This growing sentiment towards impact investing comes amid global efforts to address the causes and impact of climate change on the global stage. The annual United Nations Climate Change Conference (COP21) in Paris last year saw countries make unprecedented commitments to adapt to and mitigate climate change, with countries including China, India and the U.S. having ratified the Paris Agreement in recent months.

 «The survey highlights Asian HNWIs and UHNWIs’ increasing awareness of the importance of impact investing, driven by societal and regulatory trends, but also their cautious approach to incorporating the strategy in their investments,» said Vincent Duhamel, head of Asia, at Lombard Odier.

Asian Family Award

Lombard Odier recently honoured Jebsen & Jessen Family Enterprise, a family firm first established in Hong Kong at the end of the 19th Century, with the 21st annual IMD-Lombard Odier Global Family Business Award.

Awarded by IMD, a top-ranked global business school, and by Lombard Odier, one of the main private banks in Europe, this prize is regarded by many as the most prestigious for successful global family businesses.