In October 2021, RBC Capital Markets conducted a survey of fixed income investors domiciled in Australia to understand their ESG perceptions and strategies with regards to investment approach, sustainable finance products and market trends. The results were also compared with a similar survey RBC Capital Markets conducted in July 2021 with US credit investors.
Key takeaways
Australian investors are actively buying or considering investment in most sustainable debt products with >70% actively investing in green, social and sustainable bonds
Despite a record year for AUD ESG supply, over 40% of respondents believe there is insufficient supply across ESG products
The vast majority of Australian respondents indicated that sustainable debt demonstrates comparable (or better) returns than traditional debt, in the US market this was a slightly smaller majority
While the AUD ESG market is significantly smaller than the USD market, the survey results demonstrate that the overall receptiveness to ESG product is more prevalent. The Superannuation industry in Australia is the clear driver behind the push for increased ESG focus
Consistent with the AUD market, most US investors use third party providers/ sustainability frameworks in the decision making process.
Please contact your RBC Capital Markets representative for a copy of the report.
