FILIPINO investors are looking more into sustainable options in their investment choices but the consciousness for environmentally-sound assets are still currently isolated among the rich, a recent survey showed.
According to a study published in early 2021 by Lombard Odier & Co. Ltd. and the private banking division of Union Bank of the Philippines Inc., Filipino ultra-high net-worth individuals (UHNWIs) are slowly starting to consider sustainable investments when making investment decisions.
This remains consistent with the other UHNWIs in the Asian region with more than 50 percent of respondents agreeing that there will be a strong and accelerated climate change response once the COVID-19 pandemic has ended.
UnionBank said this survey, done together with Lombard Odier’s other strategic alliances in the region, highlights the need to educate and bring awareness to investors to “shift their mindset on sustainable investments and highlight it as a worthy and vital investment outlet to consider.”
“In view of this, there is a need for stronger conversations on the importance of sustainability aimed at Filipino UHNWIs, and private banks are uniquely positioned to facilitate these conversations effectively,” UnionBank said in a statement.
UnionBank Senior Vice President and Head of Private Banking Arlene Joan T. Agustin said the Philippines, in particular, should be more open to discussions about sustainability investing.
“In a country that is considered one of the most vulnerable to the effects of climate change, sustainability should be an important consideration when it comes to investments. UnionBank’s private banking [division] aims to localize and pioneer sustainability in investments in the Philippines,” Agustin was quoted in a statement as saying.
Just last month, Bangko Sentral ng Pilipinas (BSP) governor Benjamin E. Diokno urged the local financial institutions to get into sustainable finance as part of broader efforts to promote a resilient, inclusive, and low-carbon economy.
Diokno said more than $1-billion and P85.4-billion worth of green, social and sustainability bonds have already been issued by “first mover” banks since 2017.
“We expect more banks to follow suit as enabling regulations had been laid down complemented by continued capacity-building activities for the industry,” he added.