What's the most crucial consideration in sustainable investments?
A study showed that it’s no longer the investment returns.
Almost half or 46% of investors view environmental impact as the most important consideration before making sustainable investments, a study found.
The Schroders Global Investor Study 2021 said that investors find sustainable funds more attractive if they would make a wider environmental impact.
While it is no longer the top consideration amongst the 500 investors surveyed, higher returns (33%) remained a critical factor for seeing the appeal of this type of investment, as well as alignment of personal societal principles (32%).
A tilt in attitude towards environmental issues was also seen in 58% of the inventors, which the study believes is the reason for the change in their investment priority considerations.
Investors also believe that they themselves (46%), and investment managers and major shareholders (49%) should do their part in addressing climate change.
For investors to increase their sustainable investment countries, 41% of them want regular reporting highlighting the impact their investments are making, whilst 35% want to see some form of self-certification from the investment manager that their investments are sustainable.
Schroders’ Head of Sustainability Strategy for APAC, Mervyn Tang, said Hong Kong investors’ growing desire to positively impact society and the environment through sustainability is encouraging.