ESG Investing

ESG IS GROWING IN IMPORTANCE

The importance of sustainability for future generations has been gradually acknowledged all over the world, but different countries face different types of sustainability challenges, both at global and regional levels.

In Asia, the Association of Southeast Asian Nations (ASEAN) represents one of the most exciting growth regions globally with various development agendas.

As the majority of ASEAN countries represent emerging markets at different stages of growth, there has been a growing recognition that Environmental, Social and Governance (ESG) issues are expected to emerge alongside economic success stories in this region.

outcome of economic development

 
  • Transforming Forest Areas into Agricultural Land
  • Large Infrastructure Development in Cities
  • Depletion of Water Resources

Resulting Negative Externalities

 
  • Natural Resources Depletion
  • Air Pollution
  • Climate Change

The Need for Sustainability Policies

 
  • To Promote Environmental Protection, Quality Ecosystems and Resources Management
 

outcome of economic development

 
  • Urbanization
  • Rising Middle Class
  • Demographic Challenges

Resulting Negative Externalities

 
  • Lack of Social Protection and Welfare
  • Low Workplace Standards
  • Lack of Employee Diversity

The Need for Sustainability Policies

 
  • To promote Quality Standards and Healthy Social Development
 

outcome of economic development

 
  • Companies driven solely by Profit Maximization
  • Ignorance of Stakeholders’ Concerns

Resulting Negative Externalities

 
  • Missing Shareholders’ Money
  • Concerns on Related Party Transactions

The Need for Sustainability Policies

 
  • To put in place the right Governance Policies at company level
  • To maintain well-regulated Financial and Capital Markets

ASEAN economies face these rising ESG challenges which are symptomatic of a fast developing region.
At the same time, two strong forces are moving the need for sustainability to the forefront in ASEAN companies