72% of HNW Singapore investors view sustainable investing as 'highly important', survey finds
UBS reported on Wednesday (Oct 27) that 72 per cent of Singapore investors view sustainable investing as "highly important", and more than three-quarters expect the returns from sustainable investing to match or exceed traditional investing.
The findings are from the UBS global investor sentiment survey for Q3 2021, which polled 200 high-net-worth (HNW) Singapore investors, with invested assets of at least US$1 million.
The survey by the global wealth manager, polled an overall of 3,004 investors and 1,202 business owners across 15 markets globally.
The percentage of Singaporean investors who view sustainable investing as "highly important" are higher than the global average of 66 per cent, and the Asia-Pacific average of 67 per cent.
Seven in 10 Singapore investors indicated that investing in companies that further causes important to them as "extremely or very important", the survey showed.
The expectation of returns on sustainable investments are in line with the global average, UBS noted, with top sustainable investment themes including waste management and recycling, climate change and clean water and sanitation.
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Nearly three-quarters (74 per cent) of Singapore investors are optimistic about the region's economy for the next 12 months, higher than the Asia-Pacific average of 64 per cent.
UBS added that a majority of global investors expect sustainable investment returns to match or exceed those of traditional investments, with 69 per cent seeking advice on increasing their portfolio allocation.
On stock market expectations, 68 per cent of the respondents in Singapore expect the local leading index to perform well in the next 6 months, compared to the global average of 63 per cent and the Asia-Pacific average of 60 per cent.
"Investors continue to remain optimistic about the economy and markets, and many plan to increase exposure to risk assets, including a focus on sustainable investments," said president of UBS Americas and co-president of UBS Global Wealth Management, Tom Naratil.
He added that many investors will focus on the progress of the 26th UN Climate Change Conference (COP26) in Glasgow, with climate change being "a top concern" for them.
The survey also pointed out that globally, business owners remain confident in their own businesses over the next 12 months, despite weaker customer demand in the last 6 months, challenges with recruiting and retaining employees, and wage inflation.
Just over 65 per cent of business owners said that they had increased their employees' base pay; many have adjusted by offering more flexible hours and work locations amid the tight labour market.
The president of UBS Europe, Middle East and Africa and co-president of UBS Global Wealth Management, Iqbal Khan, said: "It's encouraging to see that a majority of business owners remain optimistic and interested in hiring and investing more in their companies over the next 12 months."
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