Wealth investors show strong appetite for transition investing as Standard Chartered study flags education gaps and risk concerns

Wealth investors show strong appetite for transition investing as Standard Chartered study flags education gaps and risk concerns

(IN BRIEF) Standard Chartered’s Sustainable Banking Report 2025 finds that 87% of surveyed high‑net‑worth investors are keen on transition investing, while 83% remain interested in sustainable investing overall. The study—covering 1,600 investors across eight Asian and Middle Eastern markets—shows strongest interest in themes such as green hydrogen (49%), low‑emission fuels (47%) and carbon capture and storage (45%). However, perceived high risk (50%), insufficient benchmarks (46%) and expectations of low returns (44%) are key barriers. Only 15% of respondents could fully define transition investing without prompts, underscoring a need for education. To address this, Standard Chartered has released a Transition Investing Guide and continues to apply its Transition Finance Framework, aligned with the IEA’s Net Zero 2050 scenario, to steer capital toward credible 1.5°C pathways. The Bank, present in 53 markets and listed in London and Hong Kong, positions transition investing as the next frontier for wealth clients aiming to support a low‑carbon future.

(PRESS RELEASE) LONDON, 22-Jul-2025 — /EuropaWire/ — Standard Chartered has unveiled fresh data showing that transition investing is rapidly moving up the agenda for wealthy investors. In a new study, 87% of high‑net‑worth (HNW) respondents expressed interest in channeling capital toward businesses and projects that are actively shifting to a low‑carbon economy. Enthusiasm for sustainable investing more broadly also remains high at 83%.

These insights come from the Bank’s latest Sustainable Banking Report 2025, titled “Transition investing – the next wealth frontier?” The research surveyed 1,600 HNW individuals (assets under management of at least USD 1 million) across eight markets—Hong Kong, India, Mainland China, Malaysia, Singapore, South Korea, Taiwan and the United Arab Emirates—between October and December 2024, capturing sentiment among investors aged 25 to 66.

When asked which transition themes most appealed to them, investors pointed to solutions that can accelerate decarbonisation:

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

Yet significant hurdles remain. Half of respondents (50%) perceive transition investments as higher risk. Nearly as many cited a lack of benchmarks to compare products (46%) and a belief in lower returns (44%) as obstacles. Perhaps most telling, only 15% could accurately define “transition investing” before being provided with an explanation—highlighting a clear education gap.

To help close that gap, Standard Chartered has launched a Transition Investing Guide, offering practical steps for evaluating transition‑related funds and opportunities. The Bank frames transition investing as a subset of sustainable investing: it targets companies—including those in traditionally high‑carbon sectors such as steel or cement—that have credible strategies to align their operations with a 1.5°C pathway. It also includes firms enabling that shift, for example, scrap‑steel producers or carbon‑capture technology providers.

“Our Sustainable Banking Reports have consistently shown strong appetite for sustainability themes,” said Samir Subberwal, Global Head, Wealth Solutions, Deposits and Mortgages, and Chief Client Officer at Standard Chartered. “Clients now want to understand how to support the real‑economy shift to net zero. Transition investing is central to that story, and we’re committed to equipping our clients with the tools and knowledge to participate confidently.”

Transition Finance at Standard Chartered
The Bank’s Transition Finance Framework defines the assets and activities eligible for a ‘transition’ label when it extends financing. It is informed by the International Energy Agency’s Net Zero Emissions by 2050 scenario (2023) and focuses on supporting clients as they align their businesses with a 1.5°C trajectory.