Home

Conversations

  • Announcements
  • Improve How I Manage My Money
  • Grow & Protect My Nest Egg
  • My Home and I
  • Ready for Retirement
  • Kids & Family Matters
  • Everything Fun
  • Polls

Learning Units

  • Bank
  • Cards
  • Insure
  • Borrow
  • Invest
  • Learn
  • Marketplace
  • ATM & Branch
  • You are in Personal Banking
    • DBS
    • POSB
    • DBS Treasures
    • DBS Treasures Private Client
    • DBS Private Bank
    • DBS Vickers Online
    • SME Banking
    • Corporate Banking
    • About DBS
    • Covid-19 and beyond
  • Back to DBS
DBS logo
DBS logo
Login
  • Home
  • Conversations
  • Learning Units
    1. digibank
    2. GIRO
    3. Travel Insurance
    4. Loan
    5. Swift Code
  • Login to
    Community
Announcements Improve How I Manage My Money Grow & Protect My Nest Egg My Home and I Ready for Retirement Kids & Family Matters Everything Fun Polls
  1. Home
  2. Sustainability
  3. What is ESG Investing?
  • HeyAnna
    HeyAnna administrators What is ESG Investing?

    Sustainability
    0

      In our poll: Over 200 of you voiced that dividend payouts and diversification are two considerations that are important to you when it comes to investing.

      🍃🌿But did you know? Our CIO 3Q20 report shares that terms like ‘sustainable investing’ and ‘ESG integration’ have evolved to now be a part of many investors’ considerations, and that this ESG overlay has positively impacted long-term performance and risk-adjusted returns.

      For many of you, it appears that a company’s ESG principles is not a priority to your investment-making decision today. Why? #WhatWouldYouDo #WWYD

      DBS_Theburrow_ESG_210427-01.jpg

      This topic has been deleted. Only users with topic management privileges can see it.
      sustainability esg investing investment
      Comment
      • Reply as topic
      Log in to reply

      Replies

      • Recent
      • Oldest to Newest
      • Most Likes
    • HeyAnna
      HeyAnna administrators
      last edited by

        In our personal opinion, as more companies increase their efforts toward ESG, an increased awareness from investors when investing also helps accelerate the adoption by other firms.

        Even though one may argue that this is a gimmick, I believe that as we all do our part - it will steer the economy towards a more sustainable one, while trying to make profit. Just to share, a recent BT article shares data for ESG performance - interestingly, the Covid-19 crisis appears to have confirmed the expectation that companies and funds that rate highly in ESG outperform.

        However, like what you mentioned, overall information from reputable news sources and word of mouth is influential. In fact, companies who don't do well on social or environment fronts can experience more publicity/reputational risk that in turn affect stock prices. That said, there are many opposing forces that also come into play. It really boils down to a company's ability to ride out a variety of risk factors, and ESG can be an indicator of these factors. You may want to check out this interesting article that talks more about this point here.

        Coming back to the point about whether there's a demand for ESG - we've actually seen more demand from investors who take an advocacy stance towards investing responsibly and sustainably. This initial growth of funding into ESG products has allowed wealth management services to provide products and avenues for customers to invest in ESG = translated into more companies adopting ESG standards. Some people may be concerned of a bubble forming in this space due to an influx of money (similar to the concerns around an ETF bubble), or cases of inaccurate/false reporting of ESG measures by companies etc.

        At the end of the day, always make sure to do your research, stay diversified, and don't put all your eggs into one basket! 🎩🐇🥚

        1 Reply 0 Reply
      • First post
        Last post

      More related Learning Units

      Money Management Mastery 0 0
      CPF 101: Contributions Rates, What Happens After 55, CPF LIFE
      Sustainability 0 0
      Can you decipher these sustainable investing myths? 🧐♻️🌲
      Investing 0 0
      Decoding Investment Jargons
      Budget 0 5
      As a young adult, what should i focus more on when budgeting?
      Investing 0 0
      What are Exchange Traded Funds (ETFs)?
      Invest 0 0
      ST reports 41% of CPF investors actually made losses
      Investing 1 0
      April 2021 Fund Performance Update
      Sustainability 0 0
      Know more about the DBS Foundation

      DBS & POSB Communities

      • Communities Guidelines|
      • Self-Service Banking
      • Terms & Conditions|
      • Privacy Policy|
      • Fair Dealing Commitment
      • ©2021 DBS Bank Ltd|
      • Co. Reg. No. 196800306E