3 motivations pushing the wealthy to sustainable investments
About 23% of investors have more than 15% of sustainable investments in their portfolio.
The percentage of investors in Hong Kong that have more than 15% of sustainable investments in their portfolio will likely increase to 25% within two to three years from the current 23%, a study by StanChart has found.
Pushing the wealthy towards sustainable investments are the abilities to enhance their financial returns (37%), help restore the environment (31%), and make a positive social impact (29%).
Whilst investors are motivated to increase their sustainable investments, some still have reservations because they perceive it to have low returns and higher risks (35%).
Local investors (48%) also said there was too little information or a lack of granularity to help them understand or assess the impact of sustainable investments on environmental, social, and governance (ESG) issues.
Meanwhile, some 30% said it is difficult to compare sustainable investment opportunities because different ESG rating methodologies arrive at different recommendations.