Retail investors can unlock funds for sustainable investments, particularly on environmental, social, and governance (ESG) priorities, according to Lanre Olajide, country head of wealth management, Standard Chartered Bank, in a statement issued.
According to Standard Chartered Bank’s Sustainable Banking Report 2022, titled ‘Mobilising Retail Investor Capital,’ accessibility (54percent), comprehension (46percent), and comparability (44percent), are among the barriers that prevent Nigerian retail or individual investors from increasing their sustainable investments.
The research report, which explores ESG investment opportunities, revealed that without these barriers, retail investors in Nigeria could mobilise $198 billion towards top ESG priorities such as food and water scarcity (40pecentr), climate change and carbon emissions (35percent), human rights, poverty, and income inequality (32percent).
“Our Global research shows that $8.2 trillion of retail investor wealth could flow into sustainable investments if we remove the barriers that restrict and limit these opportunities,” Olajide added.
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“As a bank, we have both the expertise and solutions that enable investors to achieve both profit and purpose. Importantly, we are well positioned to drive initiatives and solutions that enable the shift now for a more sustainable future,” Olajide added.
Similarly, the study paper showed financial institutions can play a role in unlocking available capital by breaking down these barriers for retail investors, using analysis based on investor behaviour and motivations
Other recommendations from the report include taking decisive action to democratise access to sustainable investments through digital platforms, providing clear and transparent information, addressing investor concerns, and providing data-driven advice on how to match their ESG priorities with the appropriate solutions.
