SEE: The year investors define and discover ESG
Growing green A key area of interest for the future is in the area of Environment, Social and Governance (ESG) investments. IMAS reports that an overwhelming 86% of IMAS members considered ESG investing a key growth driver as compared to 68% last year. More than 7 in 10 respondents are looking to differentiate their business around ESG and sustainable finance. “Investors across the globe are increasingly moving towards sustainable investments and this trend is also evident in Singapore as fund managers here have started to incorporate ESG and sustainability considerations in their investing processes,” Soh of IMAS comments. That said, the novelty of ESG considerations in Asian markets could present implementation challenges. These include the integration of alternative data sources on climate change into the management of ESG portfolios of global investors. Nevertheless, 67% of respondents said that ESG and impact-focused strategy will be the top strategy in terms of popularity growth in 2021. And IMAS intends to do its part to promote ESG investment in Singapore’s asset management industry. Says Soh, “Following the recent publication of the Environmental Risk Management Guidelines for Asset Managers that IMAS co-created with MAS, we will be launching a series of ESG training programmes for the industry to support our nation’s transition to a truly sustainable economy.”
