Today, ESG investing has taken on increased significance and it is becoming an important focus for the investing world.
SINGAPORE (Jan 31): Environmental, Social and Governance (ESG) investing is a term that is commonly associated with socially responsible investing, mission-related investing or sustainable investing. It is investing that integrates ethical, personal or moral concerns into the investment process.
The origin of ESG investing dates as far back to a few centuries ago, whereby practitioners invest their money according to their personal religious beliefs. An increase in social activism has seen ESG investing rise to prominence over the years. From the boycotting of weapon-producing companies during the Vietnam War to the divestitures of operations away from the racist system of apartheid in South Africa, investors and corporations are often driven by their ethical, personal, religious or social values.
