Social and Environmental Investing Grows Among Southeast Asians

Covid-19 has brought the issues of climate change and resilience to the forefront and key players in Southeast Asia have responded by ramping up their sustainability efforts. 

The increase in social and environmental is influencing behaviors and attitudes towards sustainable investing, particularly among Southeast Asia investors, Schroders said in its «Global Investor Study 2021.» 

Some 67 percent and 66 percent of Southeast Asian investors are now placing greater importance on social and environmental issues respectively, compared to 57 percent and 55 percent globally, according to the study, which surveyed nearly 24,000 people from 33 locations globally including Singapore, Malaysia, Thailand and Indonesia.

Embracing Sustainability

About 67 percent of Southeast Asian investors said they are positive about moving to an entirely sustainable portfolio (versus 57 percent globally), so long as the same level of risk and diversification was maintained. 

Investors in Thailand (76 percent) topped the global list, with Indonesia (72 percent), Malaysia (62 percent) and Singapore (57 percent) ranking highly.

According to the report 62 percent of Southeast Asian investors said the environmental impact of investing sustainably was the most appealing factor, compared to 52 percent globally. Some 48 percent also cited greater chances of higher returns (versus 38 percent globally), and 43 percent (versus 39 percent globally) cited alignment with their societal principles.

More Expectations

«These findings have laid bare the growing expectations now being placed on asset managers when it comes to addressing climate change,» Andy Howard, Schroders global head of sustainable investments, said in a statement. 

The report highlighted that the biggest change in sentiment over the past four years has been the growing role expected of asset managers – 61 percent of Southeast Asian investors (53 percent globally) believe investment managers and major shareholders are responsible for mitigating climate change, up from 46 percent globally in 2020