SUSTAINABLE investments remained resilient amidst market disruptions due to Covid-19, showed a Standard Chartered Private Bank’s Sustainable Investing Review 2020.
Despite the Covid-19 outbreak plunging the world economy towards a volatile future, the pandemic also led to a raised awareness of sustainable issues and renewed interest to invest in companies that are resilient enough to weather through short-term disruptions and survive for the long term.
According to the survey, 90% of investors are interested in sustainable investments, with 43% planning to invest 5% to 15% of their funds in sustainable investments over the next three years and another 8% is willing to invest over 25%.
In relation to investors’ consideration for further investments, the report revealed that affluent and high net worth (HNW) investors are generally willing to consider allocating funds towards sustainable investments, regardless of whether they have previous experience in making such investments.
However, the survey also showed that that investors lack knowledge about how to meet social and impact goals that are of interest to them, as 98% of affluent investors are interested in sustainable investing, but 93% are apprehensive about investing in this area.
Therefore, banks play a critical role in providing essential guidance to clients to unlock the growing momentum for sustainable investing.
Besides the lack of knowledge and apprehension, the other top barriers to investment in this segment are lack of motivation and advice.
“As wealth managers and trusted advisors, we play an important role in helping clients understand and gain access to sustainable opportunities that align with their desire to make a positive impact on the environment and society, as well as meeting their investment objectives,” Standard Chartered Malaysia head of wealth management Sammeer Sharma said. – Sept 24, 2020
