3 in 4 investors look for social impact of investments

84% review their investment's environmental, social and governance factors.

About 3 in 4 or 73% of Singaporean investors, think of investing in companies with positive social impact, Natixis Global Asset Management (Natixis) revealed.

According to a worldwide survey, 75% of Singapore investors also consider investing in companies with good environmental records, higher than the global 72%. Around 73% in Singapore also said social good is important in investing.

Moreover, 84% of surveyed investors acknowledge that they look at environmental, social, and governance (ESG) factors when making investments.

"The findings suggest that a significant majority of Singapore investors are looking to the green economy, sustainable infrastructure and other themes for growth opportunities," Natixis said.

Around 79% think that investing should reflect their personal values, but only 39% say index funds contain the companies that contain these.

Natixis said the growing demand for ESG investing amongst Singapore investors may not be compatible with passive index investing.

Investors also have strong opinions regarding ethics. About 76% said they are likely to sell shares of a company with negative environmental or ethical issues.

Three in four or 76% of investors also think there are companies they do not want to own because these "violate their principles."

A majority at 68% also think they have to sacrifice some return potential so that their investments match their personal beliefs.

Two-thirds or 63% said their financial advisor has talked to them about investments with a positive social or environmental impact.

"The findings suggest that while returns still matter to investors, social justice has also risen to become an influential aspect of modern consciousness", said Madeline Ho, executive managing director, head of Wholesale Fund Distribution, Asia Pacific at Natixis Global Asset Management.

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