From a corporate perspective, said Eugenia Koh, head of impact investing and engagement strategy at Standard Chartered Private Bank, sustainable investing is about future-proofing the business. About 10% of the client base is already interested in it, and the numbers are set to grow. Millennials, in particular, are investing with their values, she said, and are twice as likely to invest in companies with positive economic, social and governance (ESG) outcomes

Why sustainability matters

From a global perspective, Koh said, the United Nations sustainable development goals (SDG) offer a blueprint for ensuring that no one gets left behind. A massive gap in funding of about $2.5 trillion each year has, however, led to a call for the private sector to provide funding.

Clients want to be involved so they can make a difference and have an impact, Koh said, and two segments stand out. The next generation (NextGen) is engaging with their parents and telling them to look more at more sustainable investments. “We work to help with conversations”. And clients who are older are thinking about their legacy and impact on the world.

Insights from HNWIs

As the bank looked last year at launching an impact philosophy and having more structured conversations with clients about how they can make an impact, it decided to commission a survey to obtain insights to inform the process. The survey included more than 100 high net worth individuals (HNWI) in each of 4 markets – Hong Kong, Singapore, the UAE and the UK.  

The bank found that respondents are looking at increasing their allocation to sustainable investments, Koh said, and 80% of HNWIs who are involved in philanthropy are open to shifting their contributions to sustainable investments so that they can use their capital more effectively. The survey did find, though, that some clients are confused and think sustainable investing is about phila...

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