Standard Chartered reveals growing appetite for transition investing in latest Sustainable Banking Report

• New research shows that 87% of high-net-worth investors are interested in transition investing
• Barriers to investing include perception of higher risks, lack of benchmarking and perception of low returns
• Further awareness needed to bridge the knowledge gap around transition investing

Singapore – Standard Chartered has today released new research that points to growing interest in transition investing¹, with 87% of high-net-worth investors surveyed demonstrating appetite for this emerging area of investment. Data highlighted that interest in transition investing alongside sustainable investing more generally is overwhelmingly high at 87% and 83% respectively.

These findings were revealed in the Bank’s latest Sustainable Banking Report, which this year looks at transition investing and its potential to become the next wealth frontier. The report, titled “Transition investing: the next wealth frontier?”, is based on a survey of 1,600 high-net-worth individuals across eight markets – Hong Kong, India, Mainland China, Malaysia, Singapore, South Korea, Taiwan and the United Arab Emirates – and examines investor sentiment towards transition investing.

The report revealed investor interest in a range of transition themes that have the potential to support the transition towards a low-carbon economy, with green hydrogen, low-emission fuels and carbon capture and storage emerging as the top three themes of interest.

• Green hydrogen (49%)
• Low-emission fuels (47%)
• Carbon capture and storage (45%)
• Electric vehicles (44%)
• Carbon markets (42%)
• Electrification (32%)

Despite growing interest, the data highlighted that investors face several barriers when it comes to transition investing. The perception of higher risks was a top consideration among investors, with report findings also revealing considerations around a lack of benchmarking to compare investment products, and the perception that such investments could bring about low returns.

• Perception of higher risks (50%)
• Lack of benchmarks to compare with other investment products (46%)
• Perception of low returns (44%)

While investor appetite is strong, the findings indicated a gap in understanding, with only 15% of investors able to fully define the concept of transition investing². To address this challenge and support clients, Standard Chartered has launched a Transition Investing Guide to provide clear and practical investor guidance for evaluating transition-related funds.

Samir Subberwal, Global Head, Wealth Solutions, Deposits and Mortgages, and Chief Client Officer, Standard Chartered said: “Over the years, our Sustainable Banking Reports have looked at a range of opportunities for investors, while showcasing sustainable investing as a key area of interest. We continue to see strong interest in sustainable investing among our affluent clients, and the concept of transition investing is one that our clients are increasingly interested in being educated on. As a leading international wealth manager, we remain committed to supporting our clients to empower them with the knowledge and tools they require to help enable the shift towards a low-carbon future.”

^{1 _{Transition Investing is a sub-set of Sustainable Investing. It refers specifically to investing with the ambition of supporting and enabling the transition to a low carbon economy. This expands impactful investments to those outside of traditional climate solutions (e.g. renewable energy), to include companies in high-carbon sectors which have credible plans to align or maintain alignment of their business with a net zero trajectory. This can include organisations in sectors such as steel, and cement, but also companies which enable the transition of these sectors (e.g. scrap steel producers).}}

^{2 _{Survey respondents were first asked an open-ended question on what they think transition investing is about before they were presented with a definition and examples.}}

For further information please contact:

Clarissa Tee
Wealth and Retail Banking Communications

About the Sustainable Banking Report 2025

The Sustainable Banking Report 2025 surveyed high-net-worth individuals with assets under management of USD1 million or more across eight key markets – Hong Kong, India, Mainland China, Malaysia, Singapore, South Korea, Taiwan and the United Arab Emirates. A total of 1,600 respondents, aged 25 to 66 years old, participated in the survey in Q4 2024.

Transition Finance at Standard Chartered

We align ourselves to our Transition Finance Framework, which sets out the assets and activities that qualify under a ‘transition’ label when we undertake Transition Finance. Our Transition Finance Framework defines Transition Finance as any financial service provided to clients to support them aligning their business and / or operations with a 1.5-degree trajectory and is informed by the 2023 International Energy Agency Net Zero Emissions 2050 scenario.