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November 3, 2020updated 05 Nov 2020 10:15am

Close to half of experts think sustainable investments bring higher returns

By Patrick Brusnahan

44% of expert investors have stated that sustainable investments lead to higher returns, according to new research.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

Investors in America and Asia are especially looking at sustainable investments, while Germany and Europe slightly lag behind.

This is according to Block-Builders, which found that while nearly half of investors worldwide deem sustainable investments better for higher returns, the number of is 36% in Germany. In Asia, 49% of investors have this notion, which in North and South America, it is 52%.

In addition, 59.2% of financial experts predict a greater market potential for sustainable investments.

In 2007, 37.1% of financial experts did not want to include sustainable ESG investments in their portfolio. That number has dived to only 4.1% in 2020.

Sustainable investments actually delivering higher returns?

This trend has been reflected in a number of areas. The Global Clean Energy ETF has risen by 68.8% in the last twelve months. Furthermore, the MSCI World Socially Responsible ETF has gained 4.9% in value in the same timeframe.

“More and more investors are coming round to the idea that sustainability and returns are not mutually exclusive,” said Block-Builders analyst Raphael Lulay.

“Despite recent gains for these assets, we may still be at the beginning of a long term investment trend.”

A large number of institutions are putting greater emphasis on sustainability.

United Overseas Bank Asset Management (UOBAM) has launched a Sustainability Academy in hopes of advancing understanding amongst employees.

Commencing in the fourth quarter of 2020, the academy will provide a series of comprehensive training and development programmes on sustainable investing to more than 400 employees across Asia.

The programme – comprising of two modules on Sustainable Investing and Sustainable Development Goals (SDGs) Investing – is the result of a collaboration between UOB and Dutch asset management firm, Robeco.

Certain product offerings and value-added services were highlighted in the World Wealth Report and ESG investments were predicted to likely take on more significance for HNWIs and wealth management firms.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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