Schroders Global Investor Study 2022: ‘expert’ SA investors believe sustainable investing most likely to drive long-term returns

Kondi Nkosi, Country Head of Schroders South Africa

“Expert” investors are more likely to believe that investing sustainably is key to driving long-term returns compared with people who rate themselves as less knowledgeable, Schroders Global Investor Study 2022 has found.

The sustainability-focused findings of Schroders’ flagship study, which has surveyed more than 23,000 people who invest from 33 locations globally, found that 68% of South Africans who class themselves as having “expert” investment knowledge believe that sustainable investment is the only way to ensure profitability in the long term. This same trend is reflected in the global data, where the same 68% or two-thirds of international investors believed the same.

This compares with 53% of local investors who believe they have ”rudimentary” investment knowledge. Similarly, 74% of “expert/advanced” South African investors share the view that investing sustainably can support positive change when it comes to challenges such as climate change.

Kondi Nkosi, Country Head of Schroders South Africa, says: “It is encouraging to see that the majority (66%) of local investors across all experience levels understand that sustainability underpins profitability, acknowledging the intrinsic link between the two.”

Specifically, the study found that across the world, environmental impact was the main reason people are attracted to sustainable investing. However, investing according to social issues has grown in importance compared with previous years, ranking of second most importance among South African investors.

Interestingly, financial gains only ranked third in global investors’ list of priorities, having declined over the past two years, falling from 42% in 2020 to 36% this year – and compared with only 29% of local investors.

Click here to read more...