Sustainable investing is on the rise globally as investors view them as a way to drive societal, social and environmental change, apart from yielding good returns, according to a study conducted by Schroders.
Among the 22,000 investors surveyed across 30 countries for the Schroders Global Investor Study 2017, 78% of investors said sustainable investing is now more important to them now compared to five years ago.
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By GlobalDataMoreover, 64% of investors said that they have increased their investment in sustainable funds over the last five years.
Sustainable investing was also found to be the top choice of investment topics, ahead of other topics including asset classes and the effect of compounding.
The sustainability investment trend was found stronger in Asia and the Americas compared to Europe. In Europe, 75% of the respondents said that sustainable investing is more important than five years earlier, compared to 80% in Asia, 81% in Americas, and 78% globally.
Indonesia topped the sustainability ranking among the countries surveyed, followed by India and the US.
No Western European country found place in the top 10 ranking. Russia was the highest ranked country in Europe, followed by Sweden and Portugal. UK was ranked 15 in the sustainability chart.
Schroders global head of stewardship Jessica Ground said: “While profitability remains the central investment consideration, interest in sustainability is increasing – and is especially strong in some surprising areas. But investors also see sustainability and profits as intertwined. They are looking to allocate to companies that are successfully navigating social and environmental change to generate profit and impact.”