In The Money

A more resilient portfolio with ESG framework

In this fortnightly series, we address readers’ queries on investing issues. This week, we look at the increased interest in sustainable investing or that acronym alphabet soup called ESG.

Many ESG funds outperformed the market in 2020 amid the pandemic-induced downturn. PHOTO: REUTERS
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Q:  I am looking at investment funds and find that most of them now mention an ESG focus. Can it help deliver better returns? Why is it so important and what choice do I have if I’m not keen on ESG?

When we talk about environmental, social and corporate governance (ESG) in the context of investment, we are talking about integrating non-financial risks into investment decisions.

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