The practice of environmental, social and governance (ESG) investing may have taken off within the past two to three years, but the concept of investing in companies with sustainable practices has been around for almost five decades.

The term ESG itself was introduced by the late United Nations secretary-general Kofi Annan through a Global Compact initiative in 2004 to encourage the integration of sustainable investing, which led to the publication of the landmark report, Who Cares Wins.

The ESG concept has gone from the initial phase of unfamiliarity among investors to the next phase of scepticism and the latest phase of acceptance when more companies are jumping on the bandwagon. More companies taking on sustainability-linked loans too, with these loans pegged to the companies’ ESG performances.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook