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Amundi releases Singapore's first Sustainability Profiler Investor Report
Thursday 23 June 2022
Press Release
Amundi releases Singapore’s first Sustainability Profiler Investor Report
- ‘A Tidal Shift: Purpose Beyond Profit’, The Business Times – Amundi ESG Investing Report aims to uncover attitudes and actions toward ESG (Environmental, Social & Governance) investing among Singapore individual investors
- 76% surveyed are profiled as ‘Engaged’ investors 1 who show strong interest, awareness and commitment on environmental and social topics, and place impact at the heart of their investment decisions
- 56% of Singapore investors surveyed are already in ESG investments, and have on average 31% of their investments in ESG solutions
Singapore, 23 June 2022 – A new study released today by Amundi, Europe’s leading asset manager with €2,021 billion assets under management and a pioneer in responsible investment, paints a clear picture of the generational shift in attitudes toward ESG investing among younger Singapore investors (aged 21 to 34 years old).
The report reveals in detail the understanding, sentiments, and attitudes towards ESG investing among Singaporeans. Conducted in collaboration with The Business Times which provided input into the survey questions posed, the in-depth study, titled “The Business Times – Amundi ESG Investing Report”, interviewed more than 1,000 participants in Singapore who are currently investors or are open to investing in the future.
“The Business Times is pleased to partner Amundi to provide deeper insights into how investors think and act when it comes to ESG. We recognise how profoundly ESG will reshape businesses and markets, and as we step up our reporting of this important issue, we look forward to collaborating with more like-minded partners to move the needle,” said Wong Wei Kong, Editor of The Business Times.
Nearly eight out of 10 people surveyed were profiled as “Engaged” ESG investors (76%)1, showing strong interest and commitment to environmental and social causes on a daily basis, and by extension to their investment decisions. This figure is significantly higher among Gen Z 21-24 year-olds (93%) and Young Millennials 25-34 year-olds (82%). In particular, Gen Z are especially sensitive to social causes such as ‘Poverty’ and Young Millennials partial to ‘Inequality and discrimination’.
“The generational shift in attitudes toward ESG investing is clear among Singapore investors. In peeling back the layers of this observed high interest, we see that social causes like Poverty and Inequality are closer to the heart of our younger generation, and they are more likely to be translating this belief into action,” commented Albert Tse, CEO, South Asia at Amundi.
He added, “It’s high time that ESG investing is widely considered an actual tool to contribute to solving ongoing environmental and social changes. As a financial institution with a long history in responsible investing, Amundi has a role to play in joining hands with banks and other partners to construct and offer meaningful solutions toward impactful changes.”
Generation gap
The study found generational differences in attitude relating to ESG investments, with higher interest and actions observed among younger individual investors. These investors – belonging to the Gen Z and Young Millennials age group – were more interested in ESG investing (Gen Z: 82%, Young Millennials: 72%, average: 69%), and viewed it as of higher priority now as compared to pre-pandemic times (Gen Z: 79%, Young Millennials: 68%, average 61%).
Additionally, a gap still exists between sentiment and action. Four out of ten investors ‘significantly’ or ‘moderately’ increased investing in ESG investments as a result of higher perceived priority and interest – where significantly more Gen Z investors (55%) took action as compared to the average.
Similarly, in terms of drivers that motivate investors to make ESG investments, 73% of survey participants indicated Global Warming as one of the top three issues. In addition, Gen Z places significantly higher importance on ‘Poverty around the world’ (56%), while Young Millennials view ‘Inequalities and discrimination’ (45%), and Gen X/Baby Boomers (45 years-old and above) view ‘Water and natural resources management’ (60%) as more important.
Gen Z and Young Millennials were also more aware of ESG investments and the role of the financial sector in responsible investing as compared to the other two age groups surveyed, that is Older Millennials (35-44 year-olds) and Gen X/Baby Boomers. It was found that the Gen Z and Young Millennials respondents had taken more proactive steps in bridging the sentiment-action gap, including enquiring specifically about ESG investments (Gen Z: 67%, Young Millennials: 59%, average: 49%), and allocating a larger proportion of their total investments into ESG investments (Gen Z: 35%, Young Millennials: 34%, average: 31%).
Sentiment vs Action
The report also pointed to a distinct ‘say-do’ gap between Singapore retail investors’ sentiment and actions when it came to ESG investing.
In addition to a clear majority describing ESG investing as a priority (61%) and of higher interest (69%) compared to pre-pandemic, more than eight in 10 investors recognise the importance of ESG issues for investment solutions and companies to consider. Yet when it came to voting with their wallets, investors are willing to allocate only one-third (about 34%) of their portfolios into ESG investments, and just four in ten investors actually increased ESG investment activity since the pandemic.
Moreover, individual investors in Singapore generally still view financial investments primarily as a way to grow one’s savings (70%), and only 8% of respondents viewed it as a leverage to drive ongoing environmental and social changes.
“The survey findings indicate a growing understanding and awareness of responsible investing among investors in Singapore, especially among the younger generation. However, with results indicating a mismatch between perceived importance of ESG investing to catalyse environmental and social change and of its ability to provide value for investors, more can be done to spark concrete action,” Albert Tse observed.
Amundi leverages its strengths as a Responsible Investor and its commitment to ESG issues to support clients wishing to direct their resources and assets towards ESG investment solutions. As a leader in responsible investment, Amundi has undertaken various initiatives to raise awareness and understanding of ESG investing. Indeed, the launch of this current Investor report follows closely from their earlier launch of an IBF-certified ESG programme that seeks to enhance understanding on responsible investment approaches across the financial industry.
The full findings of The Business Times – Amundi ESG Investing Report can be found here .
-Ends-
Survey Methodology
This inaugural survey report is a collaboration between Amundi and The Business Times. It gathered the views of 1,046 individuals in Singapore who are 21 years old and above with at least SGD5,000 monthly personal income and currently investing / intend to invest in the future, on their attitudes and actions toward ESG investing, via an extensive online survey conducted by Kantar Profiles in April and May 2022.
Gen Z: 21-24 year-olds
Young Millennials: 25-34 year-olds
Older Millennials: 35-44 year-olds
Gen X / Baby Boomers: 45 year-olds and above
1About the Amundi Sustainability Profiler Tool: https://static-esg-profiling.netlify.app
Amundi designed the Sustainability Profiler Tool to allow customers to assess what level of sustainability they are willing to integrate in their investment decisions. This tool aligns with the proposed changes to the MIFID II requirements to ensure investor’s ESG preferences are considered in the advice and portfolio management processes. From August 2022 onwards, fund distributors in Europe will have to carry out a mandatory assessment of their customers’ sustainability preferences.
Three Sustainability Profiles
Engaged
The Engaged shows a strong interest in environmental and social topics. He or she is committed to environmental and social causes on a daily basis and insofar as he or she can. In this respect, they are aware of the impact that Responsible Investing (RI) products can have, and they place the search for impact at the heart of their investment decisions and in fact probably already invest in sustainable products.
Responsive
The Responsive has an interest in sustainable development, environmental and social challenges. He or she tries to do what he or she can for the environment and society on a daily basis. From this point of view, he or she is a potential client for RI products or may even already be investing in such products.
Neutral
The neutral has little interest in environmental and social issues, as these are not his or her priority. They have little impact on their day-to-day activities, because he or she does not have the time or the means to do so. In this sense, he or she does not (yet) invest in RI products, and would not be particularly interested in such offers. There is little scope for persuading him or her to change his/her current preferences by redirecting them to RI, but he or she might be interested to discover further the topic (more information, more profitability...)
About Amundi
Amundi, the leading European asset manager, ranking among the top 10 global players[1], offers its 100 million clients - retail, institutional and corporate - a complete range of savings and investment solutions in active and passive management, in traditional or real assets.
With its six international investment hubs[2], financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.
Amundi clients benefit from the expertise and advice of 5,300 employees in 35 countries. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages more than €2.0 trillion of assets[3].
Amundi, a trusted partner, working every day in the interest of its clients and society
[1] Source: IPE “Top 500 Asset Managers” published in June 2021, based on assets under management as at 31/12/2020
[2] Boston, Dublin, London, Milan, Paris and Tokyo
[3] Amundi data including Lyxor as at 31/03/2022
About SPH Media Trust
SPH Media Trust is incorporated as a public company limited by guarantee. The mission of SPH Media Trust is to be the trusted source of news on Singapore and Asia, to represent the communities that make up Singapore, and to connect them to the world. It has several business segments in the media industry, including the publishing of newspapers, magazines, and books in both print and digital editions. It also owns and operates other businesses including radio stations and outdoor media. For more information on SPH Media Trust, please visit www.sph.com.sg and our social media channels on Facebook , Instagram , LinkedIn , and YouTube .
About The Business Times
Singapore's only financial daily, The Business Times (BT), is the authoritative guide on local, regional and international business markets. In addition to corporate news and commentary, BT covers the startup, wealth, property, lifestyle and SME scenes, and tells you what you need to know about Asean and the region. For more information, please visit bt.sg.
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Press contact
Teneo Asia
Josephine Wang
Associate
+65 9298 4833
Binderiya Makhbal
Consultant
+65 8892 4056
Binderiya.Makhbal@teneo.com
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