APAC investors seeking sustainability offerings from their advisers
A global Morgan Stanley report has found 83 per cent of Asia-Pacific (APAC) individual investors would select a financial adviser based on their sustainable investment offerings.
The report, 2025 Sustainable Signals for Individual Investors, found APAC had the highest proportion of investors interested in sustainable investment at 92 per cent compared to 88 per cent globally who said they were “very” or “somewhat” interested in the asset.
Over 500 individual investors were surveyed from the APAC region.
Some 70 per cent of APAC investors said they had been “significantly” or “somewhat” interested in sustainable investments for the past two years, again the highest of all geographic regions surveyed.
This interest fed into their selection of a financial adviser, with 77 per cent of global individual investors saying they were likely to choose a financial adviser or investment platform based on sustainable investing offerings. This rose to 83 per cent of investors in the APAC region, the highest proportion geographically.
Gen Z and Millennial investors are more likely to use this as a criteria for picking an adviser than older generations at 96 and 92 per cent respectively, compared to 52 per cent of Baby Boomers. Almost all of these two demographics (99 per cent) said they were interested in sustainable investing.
“This suggests an opportunity for advisers and investment platforms to differentiate their offerings to attract new clients as wealth transfers to younger investors in the years to come,” the firm said.
APAC investors are particularly concerned about “supporting positive real-world outcomes” from their sustainable investments, it said, alongside achieving a positive financial return.
APAC investors are also most understanding of the intersection between sustainability and financial returns compared to other regions.
The large majority of APAC investors believe:
- Companies with strong environmental, social, and governance practices may be better long-term investments (90 per cent).
- It is possible to balance financial gains with a focus on sustainability (89 per cent).
- Funds can generate returns in line with the market alongside positive social or environmental outcomes (88 per cent).
- Companies can drive positive social or environmental outcomes without compromising profitability (86 per cent).
- Strong social, environmental, and governance practices can potentially lead to higher returns (83 per cent).
AUTHOR
Laura Dew
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