SO IT MEANS COMPROMISING ON RETURNS?

On the contrary: the view that ESG investment necessarily involves taking a financial hit is outmoded. In fact, it’s gone mainstream, says Durrie Hassan, Malaysia-based executive director of philanthropy and impact investment company Visible Mission. “The majority of stakeholders in financial markets, from publicly listed companies to private equity funds, now actively report on their ESG criteria and related impact frameworks. It is becoming more of the norm for these stakeholders to address ethical and responsible issues in their operations.” According to Kwan, though, thinking solely in financial terms misses the point. “I think it delivers returns but also changes definitions of ‘return’ beyond just earnings and profits. ESG is most effective if it is integrated into all aspects of company operations and culture, and can deliver value in multiple forms.”