New Lombard Odier study: Swiss investors favour sustainability despite recession fears

• Despite the difficult economic conditions, 300 wealthy Swiss investors (HNWIs)* consider climate change to be one of the most important factors for the Swiss economy, ahead of fears of recession, mass redundancies and market volatility
• A large proportion of HNWIs currently hold less than 40% of their portfolio in sustainable investments, but more than a third want to invest more in this area in the future
• Preferred sustainable investing themes include the sustainable use and protection of land, water and marine resources, and the transition to a circular economy
• 40% of respondents want to know the current carbon footprint of their portfolios and 55% would like to realign their portfolio to achieve the transition to net-zero emissions
• The financial sector is called upon to adopt more transparent methodologies, improve ESG data, adopt standards and regulations, and partner with universities to combat greenwashing.

A recent survey of 300 wealthy Swiss investors (HNWIs) conducted by Lombard Odier reveals a strong interest in sustainable investing. More than seven in ten respondents said that sustainable investments were important to them, and that even in times of economic crisis their interest would persist or even increase.

A large proportion of HNWIs currently hold less than 40% of their portfolios in sustainable investments. However, this figure should increase considerably between now and 2025, with more than one-third of respondents expressing a desire to invest more in sustainability. Among the younger generations, this figure exceeds 40%. The trend is even more striking if we consider that the share of respondents investing between 41% and 80% of their portfolio sustainably will almost double, regardless of their level of wealth.

“It is striking that climate change is mentioned as one of the most influential factors in the Swiss economy, in fourth place, ahead of fears of recession, mass redundancies and market volatility. The survey results show that wealthy investors in Switzerland are increasingly aware that sustainability plays an important role in the economy, and that investments in this field should be a priority,” commented Philippe Gay, Head of Swiss Market Offering at Lombard Odier.

Clear preferences on sustainable issues

In terms of sustainable investments, popular themes included the sustainable development and protection of land, water and marine resources. Six in ten respondents expressed interest in investments in this area. Around four in ten said they would be keen to invest to support the transition to a circular economy and the fight against climate change.

Reducing the carbon footprint is key for all age groups

Swiss investors are becoming increasingly active and involved when it comes to cutting CO₂ emissions. More than four in ten want to understand how sustainable investments work and how they can help the transition to carbon-neutrality. Furthermore, 40% of investors also want to know the current carbon footprint of their portfolio and feel that this is important.

“Growing concerns about climate change are also reflected in investor behaviour. HNWIs in Switzerland understand that they can play a key role in the transition to a carbon-neutral world. They are seeking sustainable investment opportunities and want to understand how they can help reduce emissions and minimise their carbon footprint. This proactive attitude can help trigger the changes our planet needs to ensure a sustainable future,” said Gérard Felley, Limited Partner and Head of Swiss and Francophone Private Client Markets at Lombard Odier.

Greenwashing: transparency, ESG data and international standards as potential solutions

Greenwashing remains a key concern for HNWIs. The fact that more than half of those surveyed believe that greenwashing is a widespread phenomenon only underlines the need for the financial sector to take action. Transparent internal methodologies, better ESG data, the adoption of standards and regulations, and partnerships with universities are cited by respondents as the primary elements required to combat greenwashing.