Asian investors growing increasingly sceptical of ESG funds amid lack of clarity, AXA study shows
- Growing scepticism and a lack of trust in the performance of ESG investments are the ‘top barrier’ for Asian investors: AXA Investment Managers
- Only a third of investors in Asia with ESG funds in their portfolio are fully aware of the aims and objectives of those funds
There is growing scepticism and loss of trust in the performance of environmental, social and governance (ESG) investments among Asian investors, according to a study by AXA Investment Managers.
Doubts around the performance of ESG investments rose to 35 per cent in Asia last year from 27 per cent in 2021, making it the “top barrier”, the study released on Tuesday by the global investment firm showed.
“Specifically, there is a lack of clarity over ESG funds being genuinely more sustainable,” the study said. “Across Asia, investor awareness and understanding of their ESG product holdings are on the decline.”
The findings were based on a survey by consulting firm Cicero in October last year of 12,000 consumers aged 18 to 55 across 12 European and Asian markets.
01:14
China’s first hybrid photovoltaic plant generates power day and night using solar and tidal power
The proportion of individuals in Asia who expected ESG funds to outperform non-ESG funds of the same risk level fell 10 percentage points to 41 per cent in 2023 from 2021.
Only a third of investors in Asia with ESG funds in their portfolio are fully aware of the ESG aims and objectives of those funds, the study showed, while the level of awareness had fallen 6 percentage points to 33 per cent in the same period.