In The Money

Is ESG mere marketing hype?

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.

The ESG (environmental, social and governance) theme is not new but is growing in popularity. PHOTO: REUTERS
New: Gift this subscriber-only story to your friends and family

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?

Do a quick Google search on unit trusts and investment funds and inevitably something with an ESG (environmental, social and governance) theme will pop up. It's not a particularly new theme, I would dare to venture, and is in most part a sensible approach to investing. The socially responsible have been shunning direct investments in "sin" stocks such as alcohol, gambling or tobacco firms for many years.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Find out more about climate change and how it could affect you on the ST microsite here.