What can push investors to increase their sustainable investments?

Investors have 24% of their portfolios allocated to sustainable funds.

Investors in Hong Kong said they will likely increase their sustainable investments if they can choose investments aligned to their personal sustainability preferences (77%), and if there are data or evidence that shows investing sustainably delivers better returns (42%).

According to the Schroders Global Investor Study 2022, 59% of investors are investing up to 30% of their portfolios in sustainable investments. Overall, investors have 24% of their portfolios allocated to sustainable funds.

Investors remain drawn to sustainable funds (88%) due to their environmental impact (51%) and their alignment with their societal principles (38%).

Investors also believe sustainable investments can drive progress in sustainability challenges such as climate change (65%).

Other environmental and social issues on which investors want their sustainable investments to have an impact are health and wellbeing (45%), quality of education (42%), and clean water and sanitation (37%).

Despite wanting to make a positive impact through their investment portfolios, 70% of Hong Kong investors still see the lack of transparency and reported data from providers about the impact of sustainable investments as the biggest barrier to increasing this type of investment. 

To further learn about sustainable investments,  48% of them engaged with education about sustainable investments in general. Some (42%) are engaging with data or evidence that shows investing sustainably delivers better returns (42%), whilst others looked to their financial adviser to outline their sustainable investment options (40%).