SC Group Releases 2025 Sustainable Banking Report

87% of High-Net-Worth Investors Show Interest in Transition Investing

Standard Chartered (SC) Group, the parent company of SC First Bank, has released survey results indicating a growing interest in transition investing.

According to the survey, 87% of global high-net-worth investors expressed interest in transition investing, an emerging field, while 83% showed interest in sustainable investing. Similarly, among Korean investors, 86% were interested in transition investing and 79% in sustainable investing, respectively.

These findings were published in SC Group's recently released "Sustainable Banking Report 2025." This year's report discusses the potential for transition investing to emerge as a leading field for next-generation wealth creation. Titled "Transition investing: the next wealth frontier?", the report is based on a survey of 1,600 high-net-worth individuals across eight markets: Korea, Hong Kong, India, China, Malaysia, Singapore, Taiwan, and the UAE.

Korean investors currently allocate 18% of their assets to sustainable investments but indicated a willingness to increase this to 27% in the future. When asked about their motivations for sustainable investing, 60% cited "positive impact on the environment/society," and 56% pointed to "investment returns." Additionally, 55% mentioned "compliance with social norms," the highest proportion among the surveyed countries. Korean investors also showed the highest level of interest in transition investment areas such as green hydrogen (57%), low-carbon fuels (57%), and carbon markets (50%).

Yonhap News Agency

Meanwhile, the report found that global investors are interested in a variety of transition-related themes with the potential to support the shift to a low-carbon economy. In particular, green hydrogen, low-carbon fuels, and carbon capture and storage have emerged as the top three areas of interest.

Despite the growing interest in transition investing, the report also found that investors perceive several barriers. The most common perception among investors is that transition investing carries higher risks than other types of investments. They also noted a lack of benchmarks for comparing investment products, as well as concerns that transition investing may offer lower returns.

Although investor interest is high, only 15% of respondents were able to accurately define the concept of transition investing, indicating a gap in understanding. To address these issues and support clients, SC Group has published a transition investment guide to provide clear and practical guidance for evaluating transition-related funds.

Samir Subberwal, SC Group's Global Head of Wealth Management, Deposits, and Mortgages and Chief Client Officer, stated, "Over the years, our Sustainable Banking Report has demonstrated that sustainable investing remains a key area of interest as we explore a variety of opportunities for investors. We continue to see strong interest in sustainable investing among affluent clients, and there is growing attention on enhancing clients' understanding of the concept of transition investing. As a leading international wealth management bank, we remain committed to supporting our clients with the knowledge and tools they need to transition to a low-carbon future."

This content was produced with the assistance of AI translation services.