“We are unable to find a consistent relationship where high ESG scores are the primary driver of price performance, with macro and business factors taking precedence,” they write. The analysts’ views are “based on the performance of our portfolio which comprises mainly of companies which score highly on ESG rankings, against the SGX ESG leaders index, and the broader Straits Times Index (FSSTI) index.”
As Singapore looks to go green by facilitating the green transition of businesses with better oversight, accountability and improving data quality, CGS-CIMB Research analysts Lim Siew Khee, Lock Mun Yee and Melvin Lim are focusing on companies with “good fundamentals” before going deeper into their environmental, social and governance (ESG) credentials.
The way the analysts see it, ESG scores should not be sole driver of a company’s performance.
