As the world becomes increasingly aware of the need to address climate change, Southeast Asian consumers and investors are taking note and taking action. Ahead of Earth Day 2023, a recent survey by Southeast Asian consumer research company Milieu Insight has shed light on consumer and investor attitudes towards green financing and investments in the region.
The survey found that 85% of respondents believe that individual consumer choices can collectively make a significant impact on the environment, and 54% have chosen to adopt more environment-friendly lifestyles, such as reducing the use of plastics or recycling. These findings suggest that Southeast Asian consumers are increasingly conscious of their impact on the environment and are taking steps to reduce it.
However, the survey also found that only 11% of respondents in Southeast Asia are actively making green investments. Among the countries surveyed, Malaysia had the highest proportion of green investors at 17%, while Thailand had the lowest at only 6%. Despite this, 70% of respondents who have backed green investments have increased their allocation in the last two years, indicating an optimistic outlook towards contributing to a more sustainable future.
So, what are people investing in? According to the survey, the top three sectors for green investments are waste management (57%), renewable energy (54%), and green transportation (50%). Interestingly, renewable energy was the top investment sector in Thailand (74%) and Singapore (62%), with investors also attracted to green transportation (61%).
Investors cited several motivators that would influence their decisions to allocate more funds towards green projects, including positive environmental impact (76%), improved market stability (48%), regulations on green reporting, higher financial returns, and government incentives (39% each).
While more than half (53%) of those surveyed who have yet to invest are willing to do so in the future, 41% remain uncertain about investing in the green sector. This highlights the need for increased education and awareness around the benefits of green investing, as well as the potential risks of not taking action to address climate change.
In conclusion, the Milieu Insight survey reveals a growing awareness and interest in green financing and investments among Southeast Asian consumers and investors. While there is still much work to be done to encourage more widespread adoption of green investing, the findings suggest a promising future for sustainability in the region.
