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Sustainability investing is creating enough buzz across the globe but investors would be quick to withdraw their monies if companies/funds are hit by financial scandals, data privacy breaches or cyber attacks.
About 60% of South-East Asian investors would also sell out if there were climate change catastrophes.
That is why pressure is growing on almost all key global stakeholders – from governments, companies and even asset managers – to mitigate the impact of climate change.
These were some of the findings of the Schroders Global Investor study involving 24,000 people across 33 locations globally, including Singapore, Malaysia, Thailand and Indonesia.
The bulk of investors or 67% (versus 57% globally) in the region feel positive about moving to an entirely sustainable portfolio so long the same level of risk and diversification is maintained. Globally, this was most pronounced with younger people aged between 18 and 37 (60%), the study said.
Investors also want data/evidence that sustainably delivers better returns to encourage them to increase their allocations. They want to see some form of self-certification from the investment manager that their investments are sustainable.
About 46% (versus 40% globally) said regular reporting highlighting the impact of their investments would motivate them to increase their sustainable investments.