ESG is Asia's opportunity, but can we seize it?

INVESTMENTS in environmental, social, and corporate governance (ESG) concerns have been touted as a much-needed shot in the arm for Asia's economies, after the ravages wrought by the pandemic. For such investments to fulfil their potential, however, the companies making them will have to effectively communicate their impact to shareholders.

At present, the quality of the disclosures by companies leaves much to be desired. And therein lies what is arguably going to be the greatest concern when it comes to the growth of ESG investing: the level of transparency and comparability of corporate ESG disclosures in an ecosystem currently lacking even a common language.

An analytic survey by Global ESG Monitor (GEM) out recently looked at the ESG disclosures of 140 companies, predominantly those in Europe - a region that has led the world when it comes to interest in ESG investments.