Over 40% of institutional investors in Asia say they are being held back from more environmental, social and governance (ESG) based investing, due to a shortage of expertise or qualified staff, according to HSBC’s Sustainable Finance and Investing Survey 2021.
The figure is up from 26% in 2020 and is now the most common reason Asian investors point to when asked what is holding their firm back from pursuing ESG investing more broadly and fully
The survey also showed that only 39% of investors in Asia have a firm-wide policy on responsible investing or ESG issues. This compares to 91% and 72% in Europe and the US respectively.
However, according to the survey, 72% of respondents in Asia say they are paying greater attention to ESG issues compared to last year, indicating greater prioritisation among investors in the region, and showing remaining concerns about returns are diminishing quickly.
Jonathan Drew, head of ESG solutions at HSBC, said: “Let’s get behind the efforts of governments, regulators and industry associations across the region to build talent and create robust green jobs for the future.”
“Sustainable finance and investment is a huge untapped opportunity for Asian corporates and investors, to differentiate themselves and drive growth. It is also critical in ensuring the region – which is among the most vulnerable to the climate crisis – transitions to a path of sustainable, low carbon, economic growth.
“A robust ecosystem of principles, frameworks and standards, across definitions and disclosure, requires expertise and dedicated human resource for it to happen. Meeting this need requires focus and investment, but doing so should pay huge dividends both in terms of building a sustainable future
In 2020 it launched an ESG Solutions Unit, focused on supporting and advising clients including businesses, governments and asset managers.
