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

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

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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.

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“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.