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Why ESG Matters

Make a difference with your investment decisions

Why ESG Matters

12/01/2022
A sustainable global economy starts with individual acts of conscience and responsible citizenship

ESG going mainstream

Environmental, social and governance (ESG) changes are happening faster than ever, reshaping how people live and invest. Understanding how investment portfolios will be impacted by these changes is crucial.

 

We believe that ESG factors are going increasingly mainstream and can be used to drive investment outperformance. Investment strategies incorporating ESG are growing fast and now account for over a quarter of professionally managed assets globally.

 

Our series of #WhyESGMatters aims to deliver thought-provoking analysis and highlight why ESG is becoming increasingly important for investors to consider in their investment decisions.

 

Learn more about our commitment to sustainability and explore more sustainable ways to bank.

Examples of common ESG issues

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Enviromental

Climate change

Natural resources

Pollution and waste

Enviromental opportunities
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Social

Human capital

Product liability

Stakeholder opposition

Social opportunities

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Governance

Corporate governance

Corporate behaviour

ESG drives value

  • 1.Increasing exposure to ESG rarely underperforms the markets

    Source: Refinitiv. MSCI ACWI and MSCI ACWI ESG Leaders are in USD, rebased to 100 at the inception the ESG leaders Index. Data as of 22 Feb 2019. Past performance is not an indicator of future performance. For illustrative purpose only.

  • 2.Companies with strong ESG metrics are more likely to outperform

    Source: Eccles G.R., loannou I. Serafeim G. “The impact of a Corporate Culture of Sustainability on Corporate Behaviour and Performance,” Harvard Business School, Nov 2011. Past performance is not an indicator of future performance. For illustrative purpose only.

  • 3.ESG issues can be financially material and impact share prices

    Source: Bloomberg, Morgan Stanley. Past performance is not an indicator of future performance. For illustrative purpose only.

ESG insights