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
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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?

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.

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