Investing in sustainable assets is a “no-brainer”, says Mr Michael Tan, 29.
“If I can have similar returns and hopefully do something good, why not?” says the young millennial investor, a product manager in the tech industry.
Climate change is extremely personal for Mr Tan, a digital native who is bracing himself for extreme weather and dire climate conditions.
“For young people like me, the threat is so real. We don’t have the luxury of choosing to ignore the climate crisis,” he says. “I care about my future, so it’s only natural to care about climate action and the environment.”
Mr Tan is typical of the generational shift in attitudes towards ESG investing – investment products with environmental, social and governance (ESG) considerations.
A recent survey by asset management firm Amundi together with The Business Times found that while respondents across all ages are concerned about global warming, it is highest among the two youngest cohorts – Gen Z and young millennials. The two groups have the highest percentage of ESG investors.
The Business Times-Amundi ESG Investing Report polled 1,046 individuals in Singapore, of which 95 per cent are current investors.