How to identify the right ESG investment

How to Identify the right Environmental, Social and Governance (ESG)

Some investors are reluctant to put their money into sustainable investments. Their reason is that these investments  could earn suboptimal returns. They could argue that, saving the world should be the job of global leaders and international non-profit organisations. Why should private investors have to compromise on their returns?

In fact, the opposite could be true. Sustainable investing could make a positive impact on global problems and provide you with above average market returns.

But are all sustainable investments a sure win? Certainly not.

ESG-washing or greenwashing, where companies make misleading claims about their environmental and social practices, performances or products, could be an issue. Investors on the lookout for sustainable investments could be fooled by a product that is given a “green or ESG stamp”.

So, what should investors do? How can you identify the right ESG investments?

Standard Chartered UAE offers clients opportunities to invest responsibly.

For more information on our Sustainable Investing solutions that match your investment goals, get in touch with us now.

Footnotes:

¹The end of the Oil Age

²Global wind and solar energy growth rate in 2019 was ‘slowest this century’

³Renewable energy will be world’s main power source by 2040, says BP

⁴Enlightened ESG investors engage, but retain right to divest

⁵Federal Trade Commission — Equifax Data Breach Settlement

⁶How ESG Investing Increases Risk-Adjusted Returns

⁷Sustainable investing can propel long-term returns

⁸Future leaders, take note: finance and sustainability go together

⁹Norway’s oil fund returns crimped by ethical stance

 ¹⁰ 10 global companies that are environmentally friendly

 ¹¹Patagonia just won the United Nations’ top environmental honor for entrepreneurial vision – here’s why we’re not surprised