Nearly 8 in 10 of Singapore's wealthiest investors will divest from non-sustainable firms

Financially abundant investors prioritise ESG and sustainability factors the most when investing.

ESG has further climbed up the ladder of priorities of Singapore’s wealthiest or “financially abundant” investors, with 79% willing to divest from companies that are not operating sustainably.

This is likely because  91% of the financially abundant investors believe investing in companies that contribute to mitigating the effects of climate change is important.

“It is positive to see the growing enthusiasm for investing responsibly, particularly among the wealthier investors who have the power to ignite change. By aligning their investments with their values, they aren’t simply securing their financial future, but also driving a positive and lasting change for future generations,” Oliver Wickham, Asia Partnership Director, SJP, said.

According to the study by St. James’s Place Asia (SJP Asia), the rise of ESG investing is more apparent in wealthier cohorts than those who are financially stable.

Regardless of wealth level, investors in Singapore (70%) are overall willing to sacrifice profits to invest with a positive impact.

Inventors, however, are facing challenges when it comes to responsible investing.

They cited lack of knowledge in this area (67%), concerns about the performance and returns of such investments (63%), and difficulty in accessing knowledge in this area (62%) as barriers to responsible investing.

Nearly three-quarters (74%) of investors also expressed the need for better information about sustainable investing, with this barrier felt most strongly among the financially abundant investors at 89%. 

To seek better information, 84% of financially abundant investors are also proactively screening their sustainable investments by taking measures such as reviewing sustainability reports before deciding whether to Invest.