How to identify the right ESG investment

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Some investors are reluctant to put their money into sustainable investments. They reason that these investments will earn suboptimal returns. After all, saving the world should be the job of global leaders and international non-profit organisations. Why should private investors have to compromise on their returns?

In fact, the opposite could be true. Sustainable investing could make a positive impact on global problems and provide you with above average market returns.

But are all sustainable investments a sure win? Certainly not. ESG-washing or greenwashing, where companies make misleading claims about their environmental and social practices, performances or products, could be an issue. Investors on the lookout for sustainable investments could be fooled by a product that is given a “green or ESG sheen”.

So, what should investors do? How can you identify the right ESG investments?

Standard Chartered Singapore Wealth Management offers clients opportunities to invest responsibly.Find out how Standard Chartered Singapore Wealth Management provides Sustainable Investing solutions that match your investment goals.

Footnotes:

^¹The end of the Oil Age

^²Global wind and solar energy growth rate in 2019 was ‘slowest this century’

^³Renewable energy will be world’s main power source by 2040, says BP

⁴Enlightened ESG investors engage, but retain right to divest

^⁵Federal Trade Commission — Equifax Data Breach Settlement

^⁶How ESG Investing Increases Risk-Adjusted Returns

^{⁷ Sustainable investing can propel long-term returns}

^⁸Future leaders, take note: finance and sustainability go together

^⁹Norway’s oil fund returns crimped by ethical stance

^¹⁰10 global companies that are environmentally friendly

^¹¹Patagonia just won the United Nations’ top environmental honor for entrepreneurial vision – here’s why we’re not surprised

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