High net-worth investors expected to increase holdings of sustainable investments

Overall, approximately 39% of HNWIs hold sustainable investments, according to the report, and that is expected to grow, reaching 48% over the next five years. Globally, 58% of HNWIs surveyed expect sustainable investing to become the “new normal” in 10 years.

HNWIs do not expect to sacrifice returns for sustainability, with 82% indicating that returns from sustainable investments will match, or exceed, traditional investments.

“They view sustainable companies as more responsible, better managed and more forward thinking — thus, good investments,” UBS says in a news release.

“Investors see sustainable investing as the way of the future. Across all ages, wealth levels and regions, many believe sustainable investing will become a more mainstream approach over time,” said Paula Polito, global client strategy officer at UBS Global Wealth Management. “A majority of the investors surveyed believe that sustainable investments are wise investments and see no need to compromise their personal values for financial returns.”

For HNWIs that haven’t embraced sustainable investing, the research indicates that information remains a barrier, with 72% of investors reporting that they find the language of sustainable investing perplexing.

“Education on the benefits, impact, and competitive returns is going to have to be accelerated to bring sustainable investing from niche to normal,” says Mark Haefele, chief investment officer at UBS Global Wealth Management, in a statement. “Today, that is both the challenge and the opportunity.”