Interest in ESG funds balloons; sector gets boost from fintech solutions

THE rate of adoption of environmental, social and corporate governance (ESG) took the world by storm in 2021. In recent years, ESG has become more of a reality as more companies announce sustainability initiatives and the number of sustainable investors balloons.

A recent UBS poll found that almost 70 per cent of 200 Singapore respondents were now more interested in investing sustainably than before the coronavirus pandemic, higher than the global average of 59 per cent.

Some ESG-compliant companies have outperformed the market, and have remained strong - contrary to popular belief. An S&P Global study found that 19 of the 26 ESG funds with more than US$250 million in assets under management performed better than the S&P 500 during the pandemic - from March 2020 to March 2021, those outperformers rose between 27.3 and 55 per cent, whereas the S&P 500 increased 27.1 per cent. The world has found a way to both do good and do well.