HSBC survey shows investors’ interest in ESG is increasing
The recently published HSBC Sustainable Financing and Investing Survey 2020 shows that sustainable financing is establishing itself with more and more market players. More than half of the investors surveyed, and as many as three-quarters of issuers, said that the pandemic had increased their commitment to environmental, social and governance (ESG) issues.
The trend toward sustainability is unstoppable. Despite the enormous challenges in the midst of the Covid 19 pandemic, capital market participants are now attaching greater importance to sustainable financing than they did a year ago.
That is the result of HSBC’s global “Sustainable Financing and Investing Survey”, for which 1,000 issuers and investors were surveyed globally. The result is an indication that the establishment of ESG is progressing faster than previously assumed. HSBC provides information about this.
If you want to read more about the importance of the ESG criteria and why investors are so interested in this aspect, download for free the Born2Invest mobile app. Our companion app brings you the latest market trends and business news from around the world so you can stay on top of the market.
ESG is increasingly coming into focus
More than half of the investors surveyed, and as many as three-quarters of issuers, said that the pandemic had increased their commitment to environmental, social, and governance (ESG) issues or led them to believe that they had not paid enough attention to the issue so far. Of the 2,000 respondents, more than 90 percent consider ESG to be important or very important.
On the issuer side, global ESG engagement increased slightly: Compared to last year, the proportion of participants who rated ESG as “very important” increased by four percent. Overall, 93 percent of global issuers continue to consider environmental and social financing to be important. In Europe, this figure was even exceeded in the approval rating, with 95 percent of respondents agreeing.
Pressure from outside forces investors to invest in ESG
Due to the market volatility in 2020, global investors focused more on risk and return. This is also reflected in the valuation of ESG. While 94 percent of all respondents in 2019 still considered ESG important, this figure had risen to 86 percent of all respondents in 2020 and 79 percent in Europe. At the same time, regulatory and social pressure remains the most important basis for European investors when selecting investments. This was reported by 62 percent of the survey participants in Europe.
From a global perspective, however, the parameters risk/return and external pressure are becoming increasingly important for investors when selecting investments. Worldwide, 49 percent cited risk/return as the most important basis for decision-making, 43 percent expectations of society and 41 percent regulatory authorities.
“Sustainable financing has established itself in the mainstream of the capital markets faster than expected. As a result, ESG deals are increasingly seen as a serious asset class rather than an expression of commitment to social and environmental issues,” said Daniel Klier, Global Head of Sustainable Finance, HSBC. “This is a positive development because the long-term success of ESG investments lies in the ability to compete with already established investment opportunities in terms of risk and return,” he concluded.
(Featured image by photoshopper24 via Pixabay)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in INSTITUTIONAL Money.com, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 12]
Empires come in all shapes and sizes, from small upstart affiliate businesses right through to world-dominating empires like TikTok. And...
Green Technologies: Why Southeast Asia is the New Global Investment Frontier
According to a report by the United Nations Environment Program, annual green funding flows in Southeast Asia have been estimated...
Eniax Signs Cerba, Analiza, and Oftalvist as Clients and Aims for 1M in Sales in 2023
Eniax also works with some medical centers in Spain, such as the HLA Moncloa University Hospital in Madrid, from Grupo...
GreenIT and Copenhagen Infrastructure to Develop Three 2 GW Offshore Wind Farms
GreenIT was established in March 2021 and is dedicated to the development, construction, and operation of plants for the production...
Concrete Investing Launches €4.75 Million Crowdfunding Campaign
Concrete Investing has financed 24 real estate transactions to date in four years of activity, with about €46 million raised,...
Business2 weeks ago
Market Crash or Not, the Case for a Bear Market Is Improving
Africa2 days ago
Witti Finances Launches Activities in Ouagadougou
Featured1 week ago
Mass Layoffs at the Fintech Company Moonfare
Business4 days ago
UBS Bailout of Credit Suisse Leaves Markets in Doubt and Spanish Banking Sector Suffers Instability