Retail demand for sustainable investments in Southeast Asia remains low, largely among older investors, because of lack of understanding, according to participants of a panel discussion at a recent forum organised by Asia Asset Management and the Brunei Institute of Leadership and Islamic Finance.
Brian Wong, general manager of Brunei’s Baiduri Capital and head of wealth management of Baiduri Bank, who was one of three panellists, also blamed the absence of a standardised methodology for environmental, social and governance ratings, noting that ratings firms have different ways of calculating ESG scores.
“A company that has a low ESG score from one rating firm may have a good score from another rating firm,” he said at the panel discussion on July 8 held in Brunei Darussalam.
The other panellists were Fuad Bohari, digital innovation and customer experience lead at BIBD Securities, and Mariam Veronica Abu Bakkar Seddek, director, group head, institutional and Islamic asset management at Malaysia’s Kenanga Investors.
While older investors are dragging their feet, demand among younger investors for sustainable investment products is rising “as they are passionate about how their investments are making an impact to the environment and to the society”, according to Fuad.
The panellists all agreed that investor education on sustainable products must continue.
“[Older investors] need to see beyond the return of investments…There must be a mindset shift from them,” Mariam said.
