What's next after ESG?

INVESTING sustainably is very much a buzzword.

Most asset managers are signatories of the United Nations Principles for Responsible Investment. Most also claim to have some form of environmental, social and governance (ESG) discipline in their portfolio management process.

This latest edition of Wealth carries a sustainability theme. But we challenge you to think further. If you wish your investment to make a difference, what is next after ESG? Impact investing arguably takes the investment case several steps further. Backed by a rigorous framework, it seeks to achieve measurable and systematic environmental and social impacts, and deliver returns as well.

In our At the Helm column, Temasekbacked ABC World Asia shows how finance can be a force for good. The PE fund evaluates companies through an impact lens but applies a rigorous financial discipline.

Elsewhere in this issue, we profile siblings Nichol and Nicholas Ng whose X-Inc group of companies seeks to give small and medium enterprises in the food and beverage sector a leg up.

In our Roundtable, wealth managers share insights on why sustainability and ESG have become core attributes in portfolios.

We wish you a rewarding investment journey.

Genevieve Cua WEALTH EDITOR