Majority of investors worldwide intend to up low-carbon investments
Dollars in green. Author: 401(K) 2012.
Institutional investors want to invest more in green assets but are faced with inadequate climate-related disclosures by companies, according to a survey released today by UK bank HSBC.
The research shows that 68% of global investors plan to increase their climate-related investment. This percentage is 97% in Europe, 85% in the Americas and 68% in Asia. The Middle East, with 19%, is the only region to see an annual decline in investor appetite for low-carbon investments. At the same time, 56% of investors say that current disclosure levels by companies are "highly inadequate".
At the moment, 53% of companies have an environmental strategy but only 43% actively disclose it. According to the survey, one obstacle to increased disclosure is the fact that it brings no clear competitive advantage, specifically with respect to the cost of funding. Disclosure is mainly driven by investor pressure and international regulation.
"The global transition to a low-carbon, clean energy economy is now firmly underway, yet companies and their investors are clearly travelling at different speeds," said Daniel Klier, HSBC's group head of strategy and global head of sustainable finance.
The survey, conducted by industry research firm East & Partners, covered about 1,000 companies and institutional investors.