Singapore emerges as one of the most sustainable investment markets globally: Schroders

lwx_SINGAPORE SKYLINE_170519_105.jpg
Singapore is the third most innovative city in the world, with innovation now an important part of real estate investment strategies, according to a new report from global property consultant JLL.
JUNE 13, 2019 - 4:27 PM

Singapore emerged as one of the most sustainable investment markets in the world, according to a report by Schroders.

On the reverse, Asean countries such as Malaysia, Indonesia and Thailand were among the least sustainable markets, with companies in these countries having the most negative social and environmental impacts.

The research looked at 9,000 companies and ranked the world’s main stock markets according to their overall impact on society, putting a dollar value on their social and environmental impacts.

Schroders identified some of the world’s most sustainable investment markets and sectors by analysing the net benefits or costs companies create per $100 of revenue they produce.

Market voices on:

Analysts at Schroders said that companies which face the greatest social and regulatory pressures from governments and regulators tended to deliver the biggest social benefits.

They highlighted that, according to industry, companies in the water, biotechnology and pharmaceuticals sectors provide the greatest social benefits, whereas gambling companies created the biggest social costs, relative to their importance in stock markets.

Andrew Howard, Schroders’ head of sustainable research, said: “Companies and countries are coming under growing pressure from regulators and society to consider their impacts on challenges like climate change, pollution and obesity. As those social tensions become more acute, it’s becoming more likely that these social and environmental externalities will have tangible financial costs. “

He added that it is therefore important that investors take into account the social impacts of companies and portfolios instead of relying completely on financial measures.

“How companies make money is as important as how much they make today,” said Mr Howard.