Although 85% of consumers in Southeast Asia feel that their actions can create a significant impact on the environment, only 1 in 10 are willing to invest in green sectors

The first Earth Day was held on April 22, 1970, and since then, over 190 countries have celebrated this global event. The purpose for Earth Day is to encourage people to take action to protect our planet, educate people on environmental issues, such as climate change, pollution, deforestation, and loss of biodiversity, and to motivate communities to address these issues.

In honour of Earth Day, Southeast Asian consumer research company Milieu Insights conducted a survey to understand consumer and investor interests towards green investments. The research interviewed 4,800 respondents living across Singapore, Malaysia, Indonesia, the Philippines, and Thailand. 

According to the survey, 85% of respondents believe that the choices of individual consumers can collectively create a significant impact on the environment and 54% have chosen to adopt more environmentally friendly lifestyles such as reducing the use of plastics or recycling.

A total of 11% of respondents in Southeast Asia are actively making green investments, with Malaysia at the forefront of the green finance movement with the highest proportion of green investors at 17%, while Thailand has the lowest at 6%.

The good news is people are contributing to a more sustainable future as 70% of the respondents who have backed green investments have increased their allocation in the last two years.

Photo: Courtesy of Milieu Insights

67% of respondents started investing in the environment because of concerns about protecting it for future generations, 48% want to allocate some of their investment portfolio to purposeful projects, and 43% were influenced by friends or family.

Photo: Courtesy of Milieu Insights

What are people investing in?

The top three sectors for green investments were waste management at 57%, renewable energy at 54%, and green transportation at 50%. Renewable energy was the top investment sector in Thailand at 74%, followed by Singapore at 62%, with investors also attracted to green transportation at 61%.

Photo: Courtesy of Milieu Insights

Moreover, investors have also shared that top motivators that would influence their decisions to allocate more funds towards green projects are positive environmental impact at 76%, improved market stability at 48%, regulations on green reporting, higher financial returns, and government incentives at 39% each.

Earth Day serves as a reminder that we all have a responsibility to take care of the planet and to make sustainable choices in our daily lives. As the world becomes increasingly aware of the need to tackle climate change, over half who have yet to invest are willing to do so in the future, while the rest still remain unsure about making green investments.