Global Standardisation Key For Asian Investors To Unlock ESG Potential

Amanda Cheesley Deputy Editor 5 August 2022

Global Standardisation Key For Asian Investors To Unlock ESG Potential

A new report sponsored by Jersey Finance, on “Asia’s HNW and UHNW Investors: the Growing Importance of ESG, Impact and Sustainability,” explores attitudes towards ESG among the Asian wealth market.

Greater global standardisation, more regulatory support, and enhanced understanding are vital if wealthy Asian investors are to realise the full potential of ESG-driven investing, a report sponsored by Jersey Finance shows.

Based on a survey of 112 wealth management leaders and decision-makers in Asia, the report found that there is a rising tide of interest in ESG investing among Asia’s wealthy individuals and families. However, the sector is still in its infancy, with regulation, education and infrastructure all presenting obstacles for investors.

According to the findings, 80 per cent of respondents said that ESG-driven investing is taking off, with 14 per cent saying it is already a source of significant activity. However, 20 per cent said it is tough to gain traction with wealthy private clients.

Respondents suggested that within a decade, 85 per cent of equity allocations of HNW/UHNW Asian investors will be driven by ESG considerations for 25 per cent or more of all portfolios.

The report also found that 76 per cent of Millennials and GenZ are most engaged in ESG investing, or will be when they control more of the wealth.

In addition, it shows that 81 per cent of Asian single-family offices are either receptive to the concept of ESG investing but want to learn more or are awaiting evidence that such investment produces better results.

According to the report, 23 per cent of respondents believe that not having clear regulatory guidance is an obstacle, whilst 21 per cent said too many bodies providing different standards is a problem.

The report also found that 51 per cent of respondents believe that global private banks are leading the way in terms of communicating and promoting ESG-driven investing in the Asian market.

Welcoming the results, Joe Moynihan, CEO of Jersey Finance said: “As a jurisdiction with a long track record in the Asian private client space, these insights will help inform our strategy as we continue to work with investors, advisors and key players such as private banks, and look to help private investors unlock the potential offered by ESG investments.”

The report was produced by Hubbis.

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes