Deutsche Bank Survey: 75% of Private Bank Clients View Investments Should Have Positive Impact to the World
21st May 2021 | Hong Kong
In a survey report released by Deutsche Bank’s International Private Bank with 2,130 clients around the world, over 75% of private banking clients agree that investments should have a positive impact to the world, reflecting a positive attitude towards ESG in their portfolios. In ESG, which stands for Environmental, Social, Corporate Governance, 47% of the 2,130 private banking clients in Deutsche Bank view Environment issues as more important issues than Social and Governance concerns.
” 75% of Private Bank Clients View Investments Should Have Positive Impact to the World “
The survey also highlighted differences in viewpoints from women and men, millennials and Small and medium-sized enterprises. (ESG ~ Environmental, Social, and Corporate Governance)
The report is entitled:”Biodiversity loss: recognising economic and climate threats: Survey of investor attitudes to ESG.” View: Report
Deutsche Bank is Germany’s largest bank and one of the largest bank in Europe and the world and Deutsche Bank’s International Private Bank (IPB) manages more than $281 billion of assets globally (June 2020).
The published report is titled: “Biodiversity loss: recognising economic and climate threats: Survey of investor attitudes to ESG”
The online survey of Deutsche Bank’s International Private Bank (IPB) clients aged 26 to 70 included respondents from 10 countries or regions around the world: Belgium, Germany, Hong Kong, India, Italy, Singapore, Spain, Switzerland, the UK and the US.
Key Survey Results
- Over 75% of respondents slightly or strongly agree that investments should have a positive impact to the world.
- 51% of respondents slightly or strongly agree that investing based on ESG factors can help to manage risk in a portfolio.
- 47% of respondents regard environmental (“E”) issues are more important to them than social (“S”) and governance (“G”) concerns.
- Only 2% of overall respondents see themselves as sophisticated ESG investors while almost 2/3 regard themselves as unfamiliar with ESG, or have not heard about ESG.
Within Environmental Issues
- Climate change was seen by 46% of investors as the most important factor affecting risk around investment decisions.
- Around 37% see ocean and land degradation as equally important
- Only 11% put biodiversity in the top spot.
Women & Men Viewpoints
- More women than men strongly agree that their investments should have a positive impact on the world (53% of women vs. 40% of men)
- Women are more concerned about the social (“S”) pillar of ESG than men (31% regard it as the most important vs. 25% for men)
- 47% of Millennials see the environmental (“E”) pillar as the most important, very close to the overall sample response
- Social (“S”) pillar seems to be more important for Millennials than the overall population (35% vs. 26% in the general sample)
Small and medium-sized enterprises
- SME investors put more emphasis on governance (“G”) than the overall sample.
- Only 26% of companies strongly agree that they have a dedicated ESG strategy with just 23% strongly agreeing that they factor biodiversity into their strategy
Deutsche Bank’s International Private Bank (IPB) Chief Investment Officer, Christian Nolting:
“ESG has become more and more important in investment decision-making. Biodiversity underpins many environmental, social and governance systems and biodiversity loss is therefore likely to be an increasing focus of public and investor concern.”
Deutsche Bank – First Bank to Join Ocean Risk & Resilience Action Alliance
On 17th May 2021, Deutsche Bank announced it has become the first bank to join the Ocean Risk and Resilience Action Alliance (ORRAA) as a full member, creating a partnership dedicated to bringing financial expertise and innovation to protect the ocean and the communities that depend on it.
The International Private Bank (IPB) of Germany’s largest bank will partner with ORRAA to encourage global action and private finance to invest in marine and coastal natural capital, to promote a sustainable blue economy and to build resilience in the regions most vulnerable to ocean-related risks, including sea-level rise and extreme weather events.
Launched at the United Nations’ Secretary General’s Climate Action Summit in 2019, ORRAA is a multi-sector collaboration between governments, financial institutions, insurance companies, environmental organisations and other stakeholders that aims to drive US$500 million of investment into coastal and marine ecosystems by 2030.
The partnership will offer new areas of engagement and impact to the bank’s clients, starting initially with ocean resilience research developed in close collaboration with ORRAA. Deutsche Bank International Private Bank has a long track record of offering environmental, social and governance (ESG) themed investments, integrating sustainability into its investment processes, and producing ESG, biodiversity and ocean risk research for clients.
In March 2021, we conducted a major survey of our clients, with the aim of understanding which ESG issues matter most to investors, how much investors know about biodiversity, and the implications for the planet, the economy, and portfolios. Within the overall data set, we also wanted to establish the attitudes of small and medium-sized enterprises (SMEs) and also to shed some light on the role of age as well as gender in relation to ESG.
The results therefore provide a detailed look at investor attitudes and awareness towards ESG and biodiversity in particular. They should provide useful insights for business leaders, companies, investors, asset managers, and sustainability professionals.
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About Deutsche Bank International Private Bank
Deutsche Bank’s Private Bank corporate division combines the private banking expertise of the market-leading Deutsche Bank and Postbank brands in Germany with the global network of the International Private Bank (IPB). This includes IPB’s global business with high net worth individuals and SMEs.
The Private Bank provides high-quality financial services from a single source. These range from comprehensive services for private customers and support for demanding entrepreneurs and their families, to solutions for SMEs in important Eurozone markets and India.
The Private Bank is one of the four pillars of Deutsche Bank, along with the Corporate Bank, Investment Bank and DWS, the institution’s asset management unit. Deutsche Bank is a leading bank in Germany with a global network and strong European roots.