HK investors to reallocate US$18b for climate battle

Hong Kong's retail investors are expected to reallocate US$18 billion (HK$140.4 billion) of funds to green investments by 2030, a survey shows.

And nine in ten of them are interested in climate-related investments, the Standard Chartered Bank (2888) report said.

Out of the potential US$18 billion climate investment in Hong Kong, US$11 billion is expected to flow into climate mitigation themes, with circular economy (US$2 billion), sustainable forestry (US$1.9 billion) and renewable energy (US$1.8 billion) attracting more capital.

For potential investments in climate adaptation themes, the allocation is US$7 billion, covering areas such as food systems, resilient infrastructure, biodiversity, and the blue economy.

The Sustainable Banking Report 2023 conducted interviews with 1,800 respondents across 10 growing markets in Asia, Africa, and the Middle East.

The findings revealed a global investment potential of US$34 trillion in themes related to climate mitigation and adaptation.

The survey indicates that in Hong Kong, 91 percent of local investors are interested in climate-related investments, and approximately 81 percent express a desire to boost their capital allocation to climate investments.

Standard Chartered's head of wealth management in Hong Kong Alson Ho said that as of October, the number of clients investing in sustainable development products has increased by over 30 percent year-on-year.

Meanwhile, EY Greater China's 2023 Environmental, Social and Governance Report shows that companies need to focus on sustainable development, strategic initiatives, and business transformation in the realm of ESG.

Apart from financial performance, companies should also consider environmental sustainability, employee engagement, collaborative partnerships, and a broader societal impact as key indicators of success.