In Hong Kong and Singapore, the wealthier the individual, the more likely they are to prioritize ESG and sustainability factors when investing, according to a survey by St. James’s Place Asia.
The wealthiest Hongkongers and Singaporeans prioritize ESG and sustainability factors the most when investing, according to a survey by St. James’s Place (SJP) Asia.
84 percent of respondents defined as individuals with «financial abundance» prioritized such factors, versus 64 percent amongst those defined as «financially stable». Overall, nearly half of the respondents (48 percent) said their interest in sustainable investments has risen.
Top Barriers
Despite the interest, there are still barriers to entry. According to the survey, the top barriers cited were lack of knowledge (67 percent), concerns about performance (60 percent) and availability of investment options (58 percent). Also, only 47 percent of respondents said that they would divest investments from a firm operating less sustainably.
«The research reveals a significant knowledge gap when it comes to sustainable investing, even among the financially wealthy. This has led to misconceptions such as one having to sacrifice profits to make a positive impact,» said Asia partnership director SJP Oliver Wickham.
«Besides there being greater potential to drive meaningful change through greater private wealth investment in Asia and globally, it is critical to address these gaps, as well as also educate those who have indicated interest in sustainable investing, especially on its potential to offer long-term returns.»
