The pot of ‘do-good’ money is growing quickly. But pockets and patience may not run that deep, so standards are needed to ensure resources are not squandered.

SINGAPORE (June 3): Munib Madni recently hosted a forum for 50 people, including bankers, investors, analysts and wealthy individuals intrigued by the idea of making money while doing something good for society. Madni, a Morgan Stanley alumnus, wrote his thesis on a whiteboard with a red marker: Companies that are improving their environmental, social and governance (ESG) performance are more likely than others to perform better financially over the long term.

Madni based his thesis on an analysis of more than 300 companies over the last decade. He runs Panarchy Partners, one of Singapore’s newest funds for accredited and institutional investors; the fund is committed to investing in companies that have strong sustainability targets in addition to financial performance. About 9% of the fund is in banks, which in the last few years have come under increasing scrutiny by investors to get more sustainable assets on their balance sheet.

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