Taiwan investors among world's most caring about environment: study

12/12/2016 04:25 PM
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Image from Schroders global website
Image from Schroders global website

Taipei, Dec. 12 (CNA) Asian investors have been found far more likely to pay attention to environmental and social issues than the Europeans, and Taiwan is one of 10 countries in the world whose investors are most concerned about the environment, according to a survey by Schroders, a London-based asset management company.

Taiwan ranks seventh with a score of 7.3 in Schroders' Global Investor Study for 2016, which collected responses from 20,000 investors in 28 countries who had a minimum of 10,000 euros (US$10,557) invested.

The respondents were asked to score from one to 10 -- with 10 being the highest -- the degree to which they felt environmental, social and governance (ESG) issues were important when making investment decisions.

The Europeans are less concerned about environmental issues when it comes to selecting investment destinations than Asians or Americans, particularly those investors in Indonesia and Thailand, the survey found.

While Indonesia invesotrs expressed most concern for environmental and social issues, investors in China and India also ranked the importance of these issues highly.

Japan's situation, however, is totally different based on the findings of the study, which was published in late November.

While China, which Schroders described as being frequently criticized over its record on environmental issues and its reliance on fossil fuels, ranked third, with investors giving an average score of 7.7 to the importance of environmental issues when making investment decisions. The U.S. ranked ninth with a score of 7.2.

Japan, however, had the lowest score of 5.6 among the 28 countries, the study shows.

Five issues were brought up in the study on what investors will consider when investing. They include "the importance of making a positive environmental impact when investing," "the level of importance investors place on good corporate governance," and "the level of importance investors place on good social responsibility."

The two others are "the level of importance investors place on local social outcomes," and "the level of importance investors place on worldwide social outcomes."

Taiwan's rankings in those categories hover between 7th and 10th, according to the study.

Schroders said responsible or sustainable investment, measured based on ESG factors, has become a focus for the investment industry, proven by the fact that the global value of sustainable investment grew from 13 trillion British pounds to 21 trillion in 2012-2014.

(By Tien Yu-pin and Elizabeth Hsu)ENDITEM/jc

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