New Perspectives

Environmental, social and governance (ESG) concerns are becoming increasingly important for high-net-worth individuals (HNWI) and family offices in Asia as they look to generate more sustainable financial returns and have a positive impact on the world.

This focus on sustainability is expected to increase going forward, with 46 per cent of HNWIs in Hong Kong, mainland China and Singapore expecting their investment portfolios to be made up entirely of ESG investments within the next three to five years, according to research by HSBC Asset Management.

The Covid-19 pandemic has not only accelerated this trend, but also demonstrated that companies with strong ESG ratings tend to be more resilient during economic downturns and periods of market volatility.

Stefan Lecher, regional head of investments & wealth solutions, Asia Pacific, at HSBC Global Private Banking and Wealth, points out that the S&P 500 ESG Index has outperformed the S&P 500 every year for