Could transition investing be the next wealth frontier?
Samir Subberwal, Global Head, Wealth Solutions, Deposits and Mortgages, and Chief Client Officer, outlines the potential of transition investing.
What additional strategies can affluent investors employ to mobilise capital in the fight against climate change?
Over the years, our Sustainable Banking Reports have looked at a range of opportunities for investors, highlighting innovative investment themes, while showcasing sustainable investing as a key area of interest.
Our latest report, through a survey of 1,600 high-net-worth investors across eight markets – Hong Kong, India, Mainland China, Malaysia, Singapore, South Korea, Taiwan and the United Arab Emirates – continues to reflect a strong investor appetite.
Strong interest
The survey results reveal that 83 per cent are interested in sustainable investing, while 87 per cent are keen on transition investing – to fund companies in high-emitting sectors, helping them to reduce their emissions and align their business with a net zero trajectory.
This also reflects the growing prominence of climate transition funds, with assets under management growing steadily over the years.
With the geopolitical and macroeconomic situation evolving rapidly in 2025, some markets and investors have reordered priorities to their climate agenda and sustainable investments.
However, a low-carbon transition remains a long-term agenda and many industry players continue to see its importance in the longer run.
Therefore, opportunities remain for investors to support companies that are implementing solutions such as low-emission fuels, carbon capture and storage, and electrification.
Investors indicate in our survey that they are willing to allocate more capital to sustainable investments, including transition investments. This underlines the importance of understanding what constitutes a transition product, such as in the funds space.
This is crucial considering the various approaches companies can take to implement climate transitions and disclose this information across markets.
Greenwashing concerns are particularly significant in high-emitting sectors, with over 40 per cent of respondents identifying it as a major obstacle to transition investing.
Furthermore, addressing challenges around understanding transition investing remains important, as only 15 per cent of investors are able to fully define this relatively nascent concept before they were presented with our definition and examples.
Transition investing guide
To address these challenges and support our clients, we have developed a Transition Investing guide to provide clear and practical guidance to investors evaluating transition-related funds, using criteria such as corporate commitment and portfolio composition.
Ultimately, transition investing should not just be thematic but integrated into an investor’s core portfolio. Investors could use this guide as a lens to evaluate a wider range of funds, and this could be one of the catalysts to encourage more companies to implement transition plans and accelerate the pace of industries and governments aligning relevant standards.
Through greater awareness and industry guidance, we hope to give investors more clarity and confidence, and empower them to convert their interest into action now – mobilising capital towards transition funds for long-term growth while moving towards a low-carbon future, paving the way for transition investing as the next wealth frontier.
What is transition investing?
87 per cent of affluent investors are keen on this nascent concept, with women and young people showing the stro…