For SGX-listed companies, the analysts highlighted Keppel Corp, ComfortDelGro (CDG), Netlink NBN Trust and Singapore Telecommunications (Singtel) as some of shariah-compliant companies that are also ESG high performers.
The common purpose between environmental, social and governance (ESG) and shariah investment approaches to do no harm while encouraging sustainable economic activity can theoretically expand the investment universe for ESG investors in leading Islamic markets, according to analysts at CGS-CIMB Research.
In their June 14 note, the analysts wrote that securities deemed shariah compliant have been increasing every year — Bursa Malaysia, Indonesia Stock Exchange, the Stock Exchange of Thailand and Singapore Exchange (SGX) have 80%, 60%, 39% and 20% respectively of their listed companies as shariah-compliant.
