Standard Chartered has released its latest Sustainable Banking Report, which reveals a growing interest in transition investing among high net worth individuals. The report, titled “Transition investing: the next wealth frontier?”, is based on a survey of 1,600 individuals across eight markets, including Hong Kong, India, and the United Arab Emirates. The findings show that 87% of respondents are interested in transition investing, while 83% are interested in sustainable investing more broadly.
Transition investing refers to investing in companies that are supporting the transition to a low-carbon economy, including those in high-carbon sectors that have credible plans to reduce their emissions. The report identifies the top transition themes of interest, including green hydrogen, low-emission fuels, and carbon capture and storage. Electric vehicles and carbon markets also feature prominently, with 44% and 42% of respondents expressing interest in these areas, respectively.
However, the report also highlights the challenges faced by investors in transition investing, including the perception of higher risks, lack of benchmarking, and concerns about low returns. Moreover, there is a significant gap in understanding, with only 15% of investors able to fully define the concept of transition investing.
To address this challenge, Standard Chartered has launched a Transition Investing Guide, which provides clear and practical guidance for evaluating transition-related funds. The guide aims to support clients in making informed investment decisions and empower them to contribute to a low-carbon future.
According to Samir Subberwal, Global Head of Wealth Solutions at Standard Chartered, the report demonstrates the strong interest in sustainable investing among affluent clients, and the need for education on transition investing. As a leading international wealth manager, Standard Chartered is committed to supporting its clients in their transition investing journey, providing them with the knowledge and tools they require to make a positive impact on the environment.
Overall, the report suggests that transition investing has the potential to become the next wealth frontier, with investors increasingly looking to support the transition to a low-carbon economy. However, it also highlights the need for greater education and support to address the challenges and complexities associated with this type of investing. By providing guidance and resources, Standard Chartered aims to empower its clients to make a positive impact on the environment while also generating returns on their investments.