MARKETS & INVESTING | Staff Reporter, Hong Kong

Investors regard sustainable funds as ‘best investment': study

They want more information assuring them that their investments are sustainable.

Hong Kong investors see sustainable funds as attractive investments because of their likelihood to offer higher returns, Schroders’ recent study revealed.

Almost two in five or 39% of Hong Kong investors favoured sustainable funds because of the wider environmental impact, whilst another 29% said it was due to personal societal principles, according to a survey of 500 local investors by Schroders’ Global Investor Study.

Investors believe that they can contribute to a more sustainable society through their investments, with 38% choosing to invest sustainable funds rather than those that do not consider sustainability factors.

Access to information remains key in helping investors understand the sustainable impact of their investment. A total of 89% of respondents wanted more information to reassure them that their investments are sustainable, whether this is from solution providers’ self certification (36%), third-party endorsement of sustainable investments (31%), or regular updates from the investment providers (22%).

Climate change was also found as one of the significant challenges in sustainable development, and respondents ranked themselves third in line (55%) as being responsible for mitigating climate change, behind national governments & regulators (66%) and intergovernmental organisations like the United Nations (62%).

On the other hand, 54% of Hong Kong investors think investment managers should leverage the influence they have by withdrawing funds from these companies, as climate change can be costly and disruptive to people’s lives.

In addition, investors revealed that they are currently reducing or recycling household waste (52%), buying locally produced goods that have lower carbon footprints (44%) and avoiding businesses with poor social responsibility track records (42%).

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