CapitaLand shows good ESG policies do pay off
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THE tangible positive results of good governance may not be obvious when companies do well on the back of a growing economy and market. It is during a downturn that those with good governance, which sifts out the wheat from the chaff, will stand tall. Companies with good environmental, social and governance (ESG) practices weather the storm with greater equanimity than those that have poor governance, as this year's volatile market has shown.
While it is not easy to fully and unequivocally quantify the relationship between good corporate governance practices and a company's specific performance results, it is hard not to acknowledge that companies with good ESG practices tend to fare better. CapitaLand is a clear example.
Just last week, the Singapore-listed property group, which owns and manages a global portfolio worth S$129.1 billion as at June 30, bagged a staggering 14 wins across the group at the Securities Investors Association Singapore (SIAS) 20th Investors' Choice Awards. These included the Golden Circle Award, the highest honour for corporate governance and the fourth consecutive year that the group has topped the annual awards.
