,Hong Kong

How can Hong Kong investors approach sustainability?

A survey found 67% of investors are driven by the higher potential return of sustainability.

Hong Kong investors are after higher returns when it comes to investing in sustainability, Schroders said, as 67% perceived it as a key driver.

The approaches most preferred by Hong Kong investors are impact investing (75%) and thematic investing (65%), which are higher when compared to the entire Asia region with 38% and 43%, respectively.

Other approaches preferred by Hong Kong investors include rising above ESG integration (60%) and negative screening (60%) methods.

Moreover, funds with specific sustainability goals such as attention to environmental issues (54%) or health and wellness (50%) were found to be their go-to choices apart from those with a broad sustainability focus (54%).

Schroders noted this interest amongst Hong Kong investors in impact and thematic investing is in line with their stewardship actions. Around 71% of Hong Kong institutional investors believe that engaging on environmental issues such as climate change or the use of fossil fuels is one of the most important aspects.

Some 80% of investors, however, flagged doubts about the ability to measure and manage risk when investing sustainably. This is due to the lack of transparency and reported data.

“Concerns around sustainability measurement are particular evident in Hong Kong and highlights that, as an industry, we still have a long way to go to make investors feel confident that they have all the tools and information to make informed decisions,” Mervyn Tang, Head of Sustainability Strategy, APAC, Schroders, said.

Meanwhile, 62.5% of respondents said the pandemic had little to no impact on how they viewed sustainable investments, which signals investors are already accustomed to sustainable investment.

When asked about what could affect their portfolios in the next 12 months, 79% of Hong Kong institutional investors cited geopolitical risks, whist 96% expected currency risk to have a moderate impact on their returns.

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

These five countries have Omricon cases.
The initiatives include accelerating net-zero electricity generation.
InnoClub will provide solutions in three focus areas.
The airline’s cargo yield is also expected to be 2% higher h-o-h in 2H21.
The country received a 9.23 score out of 10.
HK costs are the 9th most expensive in the Asia Pacific.
Employees with digital transformation-related jobs are most likely to benefit.
A government spokesman attributed the increase to entrenched economic recovery.
Carousell said 85% of its HK users have made secondhand purchases in the past.
Expansion plans were greatly expressed by companies from the industrial goods sector.
Winners were recognised via digital presentations held on the 24ᵗʰ and 25ᵗʰ of November.
The Gaw Capital Partners-led consortium will use the loan for the acquisition of office buildings.
The report said about 10.4% of locals are planning to own NFTs in the future.