Investors need access to more solutions, says Standard Chartered survey
A survey of leading Asian economies including India revealed that sustainable investing is at a tipping point, with awareness and interest at an all-time high among the emerging affluent, affluent and high net worth investors.
However, the Standard Chartered survey also recorded investor apprehensions due to lack of measurement and transparency. These are preventing sustainable investing from becoming more mainstream, said the Sustainable Investing Review 2021 released on 21 Sept 2021.
The survey revealed an upward trend in sustainable investing among more than 2,000 investors, surveyed in Mainland China, Hong Kong, Taiwan, Singapore, India, the UAE and UK.
Overall, the allocation of sustainable investments in investor portfolios is on the rise — 13% of investors already have more than 25% of total investments channelled into sustainable solutions, compared to just 2% of investors in 2020.
In India, the research identified trends across a four-stage adoption cycle:
Awareness – 83% know what suitable investing is
Interest – 85% show interest in sustainable investing
Intention – 57% of those who have not yet invested in sustainable solutions plan to in the future
Adoption – 68% have placed funds in a sustainable investment solution
India is on an upward trajectory when it comes to awareness on sustainable investing, with interest higher than the global average of 82%. Its adoption rate of 68% is also higher than the global average of 61%. The potential to grow sustainable investing in India is significant: 67% of Indian investors would take greater financial risks to gain social benefits, compared to 53% of investors overall.
“We uncovered a range of apprehensions potentially holding back investors in India, and found that most of them would want more access to sustainable investment options,” said the survey.
Availability of suitable solutions: 62% of respondents in India feel there is limited availability of sustainable investment options, compared to 51% globally
Transparency of the impact of sustainable investing: 72% of India’s investors preferring investments with a story about the impact, compared to 58% overall
Financial performance: 58% have concerns about the financial performance of sustainable investments (this is higher than the global average of 47%)
Accelerating sustainable investment in India may simply be about meeting the demand for a wider range of solutions.
Standard Chartered MD & Head of Wealth, India, Samrat Khosla said, “The 2021 Review confirms the growing preference for sustainable investing among clients in India. The results also indicate a perceived gap in the availability of suitable sustainable investment options, implying that there is an opportunity for the industry to scale up offerings in this area and drive adoption and uptake.
“Sustainable investing is a win-win for everyone where investors can not only aim to generate returns but also channel the flow of money into companies that work to drive achievement on the sustainable development goals. At Standard Chartered, we are committed to partnering our clients and helping them drive impact through their investments.” #investment #banking #economy /fiinews.com
