Why Asia Could Soon Dominate Responsible Investing
By Nigel Green
Responsible investing, also known as ESG investing, can be expected to dominate the investment world in this new decade – and Asia could, ultimately, lead the way in this arena.
Let’s break down the ESG abbreviation. “E” is for “environment” and includes issues such as climate-change policies, carbon footprint, and use of renewable energies. “S” is for “social” and includes workers’ rights and protections. “G” is for “governance” and includes executive compensations, diversity of the board, and corporate transparency.
There’s no doubt that ESG is becoming a major phenomenon. The Global Sustainable Investment Alliance says such investing now totals an impressive US$31 trillion, an $8 trillion increase since 2016.
Photo courtesy of Sudipto Sarkar.