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Sustainability credentials critical for HK investors

A portion of investors in the SAR believes that sustainable funds offer higher returns, according to a Schroders report.

Access to information is key in helping investors in Hong Kong understand the sustainable impact of their investments, according to an independent online survey commissioned by Schroders.

Around 89% of Hong Kong investors indicated that they wanted more information to reassure that their investments are sustainable.

Source: Schroders

The survey, which included 500 investors in the SAR, noted that 45% said their financial adviser only provides them with information on sustainable investing when prompted by them. In addition, more than half (54%) of the investors think a lack of visibility of sustainability credentials would undermine their trust in an investment provider.

“Sustainable investing often means different things to different people, their personal beliefs are often a key part of this,” Amy Cho, Schroders’ CEO for Hong Kong and head of intermediary for Asia-Pacific, said in the report.

“For some, this may entail putting a greater investment emphasis on companies that place environmental issues at the top of their corporate agendas. For others, they may seek divestment from fossil fuel producers.

“Communication is therefore key. Investors need to understand what investing sustainably really means and entails,” she said.

The survey findings come at a time when Schroders is nearing complete integration of ESG across its entire portfolio of assets and is now in the process of understanding and measuring the impact of their investments, according to a report published by FSA’s sister publication, ESG Clarity.

Offering the best of both worlds

Investing in sustainable funds has also increased in Hong Kong, according to the report. Findings show that 38% of investors this year have preferred to invest in sustainable funds over products that do not consider sustainability factors, versus the 26% of people who did in 2018.

In addition, the motivation for investing in sustainable funds is driven by the belief that they are more likely to offer higher returns, followed by their wider environmental impact and the societal principles of the investor.


“It is exceptionally positive to see that many investors today believe that investing sustainably does not have to come at the expense of performance, and that people want their values reflected in the way they invest,” Cho said.

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