In addition, there is a wider $8.2trn of retail capital potential in sustainable investing. This is according to Standard Chartered’s Sustainable Banking Report 2023 which states that climate investment is gaining traction.
It also claims that $2.1trn could be directed towards climate mitigation, with high interest in renewables, energy storage and efficiency. Also, a further $1.3trn could be mobilised into climate adaptation, across resilient infrastructure, food systems, biodiversity and the blue economy.
90% of respondents, totalling 1,800 overall, said they were interested in climate investing.
On the other hand, only 20% were willing to invest significantly.
66% claimed that accessibility was the main barrier to climate investments, followed by comparability (64%), comprehensibility (63%), perceived low returns (59%), perceived higher risks (58%) and scepticism (56%).
The report states that financial institutions have a critical role to play in mobilising retail capital via three pillars – empowering investors with information, product customisation and outcome-based information.
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Marc Van de Walle, global head, wealth management, deposits and mortgages, Standard Chartered said: “Financing our collective response to climate change is a critical challenge.
“Overall climate mitigation and adaptation face an annual funding gap of trillions of dollars. Institutional capital is often the focus when mobilising funds to bridge this gap – the scale and power of retail investor capital is a lesser-known opportunity. To overcome the current disconnect between investor interest and the scale of climate investments, the industry needs to improve access to solutions, harmonise reporting standards and measurement of impact. We continue to work closely with our clients to match their investments to their areas of interest, so they can help finance solutions for a more sustainable future.”Don’t miss our coverage of COP28! Subscribe here for exclusive insights & analysis.