Over 4 in 5 investors shy away from sustainable investments

Only 28% include sustainability in their top two priorities.

Almost two out of five, or 37% of Singaporean investors have been intent on investing sustainably, but only 16% have committed to do so, a 2019 survey by Schroders found.

By level of priority, only 28% ranked sustainable investments as their number one or two, priority, although higher than the global average of 24%. The study noted that they mainly prioritised returns and financial incentives.

Also read: Singaporeans most knowledgeable amongst Asian investors in sustainable investing

Self-identified expert and advanced investors were more likely to commit to sustainable investments, with 23% already doing so compared 9% of intermediate investors and 5% of beginners.

About 64% of them felt that changes to regulations would help them lean towards sustainable investments, whilst 61% expressed that independent ratings confirming that the fund takes a sustainable approach would also drive them to invest this way. Over three out of five also felt that they would allocate more of their portfolio to sustainable investments if their financial advisers provided them with information on the subject that is easy to understand.

Globally, out of over 25,000 investors across 32 locations, only 16% invest in sustainability compared to 32% who have expressed interest in it.

The study found investors who identify themselves as being expert or advanced were more likely to invest sustainably, with 23% compared to 11% of intermediate investors and 8% of beginners.