Environmental impact named top attraction to invest sustainably: study

Majority of Hong Kong investors cited lack of transparency as barrier to more sustainable investing.

1 in 2 Hong Kong investors have named environmental impact as the most attractive feature of investing sustainably, according to a global study by Schroders.

Of the 500 Hong Kong investors polled by the asset management firm, 51% answered environmental impact, whilst 38% named that a fund’s alignment with their societal principles is also a key feature.

Delivering financial returns remains a top priority for many investors, with 54% of respondents seeking funds that focus primarily on delivering financial returns whilst integrating sustainability factors, the study found.

Transparency is also of key concern to investors, especially in Hong Kong. 7 in 10 or 70% cited lack of transparency and reported data from providers about the impact of sustainable investments as the most significant barrier for them to invest more sustainably. This is much higher than the global average of 51%.

Education was another factor named by the respondents. Over 1 in 3 or 38% of Hong Kong investors said that more education around sustainable investing would encourage them to allocate more sustainably.