KUALA LUMPUR (Dec 14): A total of US$17 billion (RM79.43 billion) of retail investor capital could be mobilised towards climate investments in Malaysia by 2030, according to Standard Chartered (StanChart)’s Sustainable Banking Report 2023.

Of this, US$9 billion might go towards mitigation themes, particularly renewables, energy efficiency and storage. The remaining US$8 billion could be directed to adaptation, covering resilient infrastructure, biodiversity and food systems, according to the report released on Thursday.

Based on a survey across 10 growth markets in Asia, Africa, and the Middle East, the research report suggests a global potential of US$3.4 trillion for climate investing, highlighting the significant impact individuals can have in combating climate change.

In Malaysia, the report said that 93% of investors express interest in climate investing, with 83% aiming to increase capital flows towards climate-related initiatives. Motivations include adherence to social norms, personal values, improving investment returns and reducing portfolio risks.

Despite this interest, Malaysian investors face barriers, with 66% citing comprehensibility and 63% noting comparability as significant challenges in climate mitigation and adaptation investments.

The report emphasizes the industry's critical role in overcoming these barriers and calls for collaborative efforts from financial institutions, regulators, companies and individuals to establish a broader range of climate assets.

To address these challenges, the report recommends various actions, such as asset managers and banks being urged to create new climate assets aligned with emerging interests while financial institutions should attract retail capital by providing information, customizable products and outcome-based details.

The report also highlights the importance of digital solutions for simplifying processes and emphasizes the need for global industry alignment on reporting standards and minimum disclosure requirements to boost investor confidence.

Sammeer Sharma — managing director and head of consumer, private and business banking at StanChart Malaysia — emphasized the industry's role in improving access to solutions, harmonizing reporting standards, and measuring impact to bridge the gap between investor interest and the scale of climate investments.

"At StanChart Malaysia, we will continue to work closely with our clients to match their investments to their areas of interest, so they can help finance solutions for a more sustainable future," he added.