Aglobal report suggests that wealthy Asian investors are leading the world when it comes to socially responsible investment (SRI).
The World Wealth Report from Merrill Lynch and Capgemini indicates that Asian high-net-worth individuals are allocating 10 to 15 per cent of their portfolios to SRI strategies compared with 6 to 8 per cent in other locations.
Kenneth Y.S. Sit, Bank Sarasin-Rabo (Asia) chief executive, said there was no compromise on return on investment in selecting socially responsible investment strategies.
'Our experience and a lot of academic research show that taking environmental and social criteria into account produces higher returns and less volatility.
'It is a fairy tale that SRI must underperform. SRI is not about tree hugging. The social and environmental analysis is simply a much deeper analysis of companies and their financial success,' Mr Sit said.
Bank Sarasin is widely credited with being the first large financial firm to adopt SRI strategies.
The bank launched the first eco-efficiency fund in the world in 1994 and this concept is now the industry's gold standard. And, in 2000, the bank was one of the first to launch a sustainability theme fund (Sarasin New Energy).