It’s Time to Adopt ESG Initiatives in Your Business
October 1, 2021
In today’s competitive business world, key stakeholders and investors have become increasingly concerned about the sustainability strategies of a company. This is because companies engaging in ESG initiatives and prioritizing social good over economic profits can create sustainable competitive advantage and consequently bring about attractive returns to investors. As such, the efforts a company puts in to integrate ESG into their business model will influence the investment decisions among the socially conscious investors. We can relate this trend to a recent news article published on Nikkei Asia. In the article, the Chief Investment Officer for Fixed Income of GIC pointed out that sustainability is a key determinant of their investment selection decisions. Bearing in mind the sustainability factor, they are more keen to support companies with ESG practices.
To elaborate further, The Business Times has reported that there is a growing awareness of the importance of ESG across generations in Singapore. This includes the older generation which was previously thought to be less concerned about ESG issues. They tend to emphasise more on ESG outcomes once they have gained a better understanding of the overall ESG concept, and how it can be a value add investment strategy. With the acceleration of the trend to sustainable investing among investors in Singapore, it is now a good time for companies to consider the adoption of ESG initiatives so that they can maintain long term sustainability of the companies and create values that last.
Conclusion
In order to address the stakeholders’ concerns in ESG, companies should proactively incorporate ESG pillars into their business strategies. Companies with future-oriented mindsets can create a positive impact through various ESG practices such as improving resource efficiency, promoting equality and diversity in the workplace, implementing anti-bribery and corruption measures and so on. To sum up, a holistic and long-term approach towards sustainability is necessary. Business nowadays is not just about profits – it is about how to maintain a balance between driving revenue and protecting the welfare of society at large and the environment at the same time.
How we can help
- Assist to set up ESG frameworks
- Provide support on ESG reporting
- Provide ongoing ESG advice and support
- Facilitate effective communication of the company’s ESG approach with internal and external stakeholders
- Review and rate the existing governance framework
Reference Materials
Iwamoto, K. (2021). ‘Singapore’s GIC keen on companies with potential to improve ESG’, Nikkei Asia, 6 September. Available at: https://asia.nikkei.com/Editor-s-Picks/Interview/Singapore-s-GIC-keen-on-companies-with-potential-to-improve-ESG
Shiao, V. (2021). ‘ESG fast becoming a key focus across generations’, The Business Times, 21 July. Available at: https://www.businesstimes.com.sg/banking-finance/futureproof-an-esg-series/esg-fast-becoming-a-key-focus-across-generations
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