Sustainable Investing Review 2020

The company which did the research report - Standard Chartered in partnership with behavioural finance experts.

About the company - Standard Chartered plc is a British multinational banking and financial services company headquartered in London, England. It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority.

Area of research - Growing sustainable investments through knowledge. Our third annual Standard Chartered Sustainable Investing Review offers unique insights into how COVID-19 has impacted the sustainable investment plans of affluent and high net worth individuals in Hong Kong, Singapore, the United Arab Emirates and the United Kingdom.

Name of the organization which did the survey - Standard chartered 

Participants of the survey - 1,080 investors in Hong Kong, Singapore, the UAE and the UK representing a broad range of age, gender and locations.

Duration of the research survey - Annual survey undertaken in early 2020

The main points of discussion in the survey:

1. Investors turn to sustainable investments during the time of COVID-19

2. Almost half of the respondents intend to favour sustainable investment

3. Changing sustainable development goals (SDGs)

4. The investment approach of various investors based on personality, geographical location, age, knowledge

5. Building resilience to future shock

6. Both interest in and apprehension of sustainable investment among affluent investors

7. Five distinct personality types of investors 

8. Assessing the personalities of investors

9. Market differences

Findings of the survey:

1. Undertaken in early 2020, this third annual survey highlights growing investor interest in playing their part as responsible global citizens. It reveals that apprehension and a lack of knowledge and advice are the biggest barriers to investment in this segment.

2. Interest in sustainable investing is very high – 90 per cent are interested and 42 per cent are considering investing 5 to 15 per cent of their funds in sustainable investments over the next three years.

3.  More than 40 per cent of investors surveyed consider Clean Water and Sanitation, Good Health and Wellbeing, and Climate Action to be the United Nations (UN) Social Development Goals (SDGs) of higher importance.

4. Investors from different regions have differing views on which of the SDGs are of higher importance, for instance, those from Hong Kong favour Climate Action and those in the UAE care more about Quality Education.

5. 42% of investors are considering investing 5 to 15% of their funds in sustainable investments over the next 3 years.

6. Investor interest varies across geographies - Investors in Singapore rated Clean Water and Sanitation and Life below Water as being of higher importance, while investors in Hong Kong rated Climate Action and Life below Water as being of higher importance. Whereas, Interest in investing or exploring sustainable investments is higher among the young and educated in the UAE.

7. Investors interest varies across age - While older investors (above 50) are less likely to accept trade-offs and to seek guidance about their investments, those under 30 are less likely to focus only on financial returns.

8. Removing barriers with knowledge - 98% of affluent investors are interested in sustainable investing, although 93% are apprehensive about investing in this area. This reflects one of the survey’s key findings that a lack of knowledge about how to meet social goals is an impediment to investors who want to make sustainable investments.

9. Building resilience to future shock - Around 45% of affluent and high net-worth (HNW) investors indicated they were considering putting 15 to 25% of their funds in sustainable investments. Affluence predicts interest, largely because affluent investors have better access to investment advice, and this, in turn, leads to increased knowledge of sustainable investing options.

10. Both interest in and apprehension of sustainable investments is higher among affluent investors - While knowledge is the biggest predictor of interest and affluence is a strong predictor of knowledge, those surveyed indicated a strong demand for guidance to build their knowledge of sustainable investing. 

11. Five distinct personality types of investors were identified –

1. Optimisers have a very high interest in and also high apprehension towards sustainable investing. Income rich, this group makes up 21 per cent of those surveyed with UAE investors accounting for nearly half of this group.

2. Impact Believers have a high interest in sustainable investing and low apprehension. This group makes up 13 per cent of those surveyed. They are asset rich and more likely to have previously invested in sustainable investments. Investors in Hong Kong make up around one-third of this group.

3. Cautious investors are moderately interested in sustainable investing, have high apprehension, and makeup 23 per cent of those surveyed.

4. Around 23 per cent of those surveyed are Resistant investors with a high preference for avoiding investments that are unethical or could do harm to the environment or society but a low interest in sustainable investing.

5. Apathetic investors, which accounted for 20 per cent of those surveyed, in general, had a low interest in sustainable investing and receiving investment advice.

12. Assessing the personalities of investors include- 

1. Attitude towards social trade-offs 
2.  Knowledge about sustainable investing
3.  Previous sustainable investment experience
4.  Source of wealth

13. Sustainable investing in Asia - Despite recent pandemic disruptions, the interest in sustainable investing in Asia continues to grow. Over the next three years, 43 per cent of investors in Asia said they are considering putting 5 to 15 per cent of their funds in sustainable investments with 8 per cent looking to invest more than 25 per cent. 45 per cent of Singapore’s affluent and HNW investors were highly apprehensive about sustainable investing compared to Hong Kong at 30 per cent.

14. Capitalising on sustainable opportunities in the UAE - 72% of potential UAE investors indicated they are highly interested in the possibilities presented by sustainable investing. The survey reveals that investors in this market also had a higher degree of apprehension compared to Asian investors, as well as a need for increased knowledge about terminology. For instance, UAE investors were the least familiar with low carbon investing.

15. Same intent, different priorities in the UK - Around 71% of the UK’s investors said they were highly interested in sustainable investing. Of those surveyed, 45 per cent said that over the next three years they would consider investing between 15 to 25 per cent of their available funds in sustainable investments.

The Standard Chartered Sustainable Investing Review 2020 will help to align their personal goals and values by supporting their need for greater knowledge and guidance through our wealth management advisory services, we can work together to become a force for good while seizing opportunities for growth and returns.

Questions :

1) Name of the company which did the report?

1. Standard chartered
2. Global markets
3. Societe generale
4. Synchrony

2) What is the title of the survey report?

1. Closing the gender gap
2. Sustainable Investing review
3. Work environment
4. Diversity and inclusion

3) What kind of services is provided by Standard chartered plc?

1. Auditing
2. Human resource
3. Banking and financial services
4. Investment policies

4) How many participants were included?

1. 1000
2. 1080
3. 1500
4. 1075

5) When was the survey undertaken?

1. Early 2020
2. In 2019
3. Late 2020
4. Early 2021

6) To where have COVID-19 caused a shift in the priorities of global investors?

1. Stock market
2. Retail
3. Start-up
4. Sustainable investing

7) What % of investors are considering investing 5 to 15% of their funds in sustainable investments over the next 3 years?

1. 50%
2. 35%
3. 42%
4. 55%

8) How many personalities of investors were identified in the survey?

1. 4
2. 5
3. 3
4. 2

9) What kind of investors has a very high interest in and also high apprehension towards sustainable investing?

1. Optimizers
2. Impact believer
3. Resistant 
4. Apathetic

10) What kind of investors has a high interest in sustainable investing and low apprehension?

1. Optimizers
2. Impact believer
3. Resistant 
4. Apathetic

11) What kind of investor is moderately interested in sustainable investing and has high apprehension?

1. Optimizers
2. Impact believer
3. Resistant 
4. cautious

12) What kind of investor has a high preference for avoiding investments that are unethical?

1. Optimizers
2. Impact believer
3. Resistant 
4. Apathetic

13) What kind of investor has a low interest in sustainable investing and receiving investment advice?

1. Optimizers
2. Impact believer
3. Resistant 
4. Apathetic

14) Which of the following is not a part of assessing personality? 

1. Attitude towards social trade-offs
2. interest in sustainable investing
3. Previous sustainable investment experience
4. Source of wealth

15) Which type of personality investor has the highest interest in sustainable investment?

1. Optimizers
2. Impact believer
3. Resistant 
4. Cautious

16) Which type of personality investor has the lowest apprehension of sustainable investment?

1. Optimizers
2. Impact believer
3. Resistant 
4. Cautious

17) Investors in ______ tend to care more about Clean Water and Sanitation and Life Below Water and relatively less about Gender Equality when compared with individuals in other markets.

1. Hong Kong
2. China
3. India
4. Singapore

18) ____ of potential UAE investors indicated they are highly interested in the possibilities presented by sustainable investing. 

1. 55%
2. 60%
3. 72%
4. 75%

19) Around ____ % of the UK’s investors said they were highly interested in sustainable investing.

1. 50%
2. 45%
3. 80%
4. 71%

20) What is meant by impact investing?

1. Investments that look to create measurable positive social or environmental outcomes and financial returns.
2. investment in new clean energy technology
3. socially conscious investing or socially responsible investing
4. Individual’s willingness to accept reduced financial returns, reduced liquidity, or extra risk for social impact.