What wealthy private investors think about sustainability
Sustainable investments are becoming increasingly popular with private investors – as is confirmed by the fifth edition of the LGT Private Banking Report. But there is also scepticism about sustainability.
Wealthy investors are concerned about worldwide environmental degradation, climate change, and the growing gap between rich and poor – these are the results of the LGT Private Banking Report. The majority of private customers surveyed would like to do something about these developments, including by making their investments sustainable. They are convinced that in this way, they can make a positive contribution to a liveable future (see figure). This is why more than 75% of the investors surveyed take environmental, social, and especially ethical aspects into account when making their investment decisions.
Figure: Statements on sustainability
Nevertheless, not all the investors surveyed rate the success of sustainable investments equally: The study results show that women are more optimistic about sustainability than men. They find the issue more important and believe more strongly in being able to make a positive impact on the environment and society with the right kind of investments.
Moreover, respondents believe responsibility for the environment and society lies not only with themselves, but also with policymakers and businesses. However, there is also some scepticism in this regard. Many of those surveyed suspect that banks and businesses are using sustainability merely as a label to polish up their image. This means that on the one hand, investors are questioning the motives of banks' and businesses’ engagement with sustainability, but on the other hand they still want more sustainable initiatives from that side.
The picture is therefore multifaceted when it comes to the attitudes and opinions of wealthy investors towards sustainability. In order to establish sustainable investments more broadly within this client group, a proactive approach to sceptical attitudes and a corresponding range of products and services is advisable. What the LGT Private Banking Report clearly shows: Sustainable investment is not simply a trendy topic – quite the contrary. Wealthy private individuals are dealing intensively with this topic and want to make a contribution to a better future through their investments.
The LGT Private Banking Report 2018 was published in June. The survey has been carried out every two years since 2010. The aim of the study is to gain insights into the investment behaviour and attitudes of private banking clients. The study surveys 360 wealthy individuals from Germany, Austria, and Switzerland with disposable investment assets of more than 900,000 Swiss francs. The author of this study is the Swiss Professor of Asset Management Teodoro D. Cocca at the University of Linz.
Links
LGT Private Banking Report 2018