Developments and commentary in and around the ESG investment space.

Schroders
A study of 205 institutional investors in Asia, including pension plans, insurers and foundations, found that they are embracing sustainable investing not because it complies with rules but because the returns are attractive.

The findings came from the Schroders Institutional Investor Study 2021, conducted among 750 groups around the world, collectively overseeing £26.8 trillion of assets. In some ways their views mirror those in parts of the family offices and private client space.

More than two-thirds (68 per cent) of Asia-Pacific respondents are seeking to capture long-term growth opportunities through sustainable investing – a synonym for investing in “green” technologies and activities deemed not harmful to the planet. Some 34 per cent think that it has the potential for higher returns. Just under half, however (45 per cent) of APAC investors, said that regulatory and industry pressure was a driver for their sustainable investment focus, although this has fallen from 60 per cent in 2020, Schroders said. 

More than 67 per cent of institutions identified integration in their top 3 three preferred approaches to investing sustainably. Positive screening (59 per cent) and negative screening (53 per cent) also ranked among the most popular approaches. 

“Greenwashing” – dressing up investments as “green” – continued to be the biggest issue for 57 per cent of investors in Asia, a 1 per cent increase from last year, highlighting the fact that this continues to be the most significant obstacle.

DBS Bank customers can track their carbon footprint when a new calculator feature on the lender's digital banking app is rolled out by January, according to the Business Times (of Singapore). 

The calculator will be able to automatically generate carbon footprint profiles and insights based on DBS credit and debit card spends, the publication said. The bank is also developing a function that will let customers buy carbon credits to offset their carbon footprint.

The tool will be released as a part of DBS's LiveBetter digital platform, which aims to make it easier to access educational resources, services and products centred on sustainability.

Such offerings are being launched by banks and other institutions to tap into perceived client enthusiasm for environmentally-themed investment and financial tools.