Asia and US lead the way as global sustainable investing rises

A survey of more than 22,000 investors across 30 countries has found that sustainable investing is on the rise across the globe with the US and Asia leading the way and the UK and Europe dropping down the rankings.

The survey, conducted by investment giant Schroders, highlighted that some countries such as Indonesia, India and the US are ahead of the curve with their sustainability behaviours, such as recycling, reducing energy. And popularity of sustainable investing differs also between countries.

Globally, investors see sustainable investing as a way to drive not only societal, social and environmental change, but also profit, Schroders said.

Using its research, Schroders has created a sustainability ranking based on an average score of the questions that it posed to investors.  Indonesia topped the ranking, with India second and the US third. At the bottom of the list were Hong Kong, South Korea and Japan.

The full ranking is below:

RankingCountryRankingCountry
1Indonesia16France
2India17Taiwan
3USA18Switzerland
4China19Austria
5Brazil20Canada
6Thailand21Singapore
7South Africa22Italy
8UAE23Germany
9Chile24Spain
10Russia25Denmark
11Sweden26Belgium
12Australia27The Netherlands
13Portugal28Hong Kong
14Poland29South Korea
15UK30Japan

Jessica Ground, global head of stewardship at Schroders, said that it was “extremely encouraging” to see sustainable investing is on the rise.

While profitability remains the central investment consideration, interest in sustainability is increasing – and is especially strong in some “surprising areas”.

‘Intertwined’

“Investors also see sustainability and profits as intertwined,” she said. “They are looking to allocate to companies that are successfully navigating social and environmental change to generate profit and impact.

“Investors understand the impact that issues such as strong corporate governance and diversity can have in generating profits – views that are backed up by the research.

“Social and environmental change is happening faster than ever. The challenges posed by climate change, inequality and demographics are sizeable. Our study shows that investors are willing to play a role and value the impact that investments in green technology and social impact can have.”

ABOUT THE AUTHOR
Gary Robinson
Deputy Editor, International Investment and Head of Video at Open Door Media Publishing. A fully qualified journalist and filmmaker with more than 20 years' financial services experience, both as journalist and originally as an IFA.

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