Sustainable investments are on track to become mainstream as investors recognise that there need not be a trade-off between returns and making positive impact. Here at DBS, we are committed to ensuring that every investor is aware of the role of sustainability and support you in integrating it in your portfolio. ESG stands for Environmental, Social and Governance, and the ESG rating helps evaluate a company’s resilience to relevant risks financially in long-term. By leveraging the expertise of , you can identify fundamental sustainability risks not picked up by conventional financial analysis for a range of ESG products from stocks, bonds, mutual funds and specific products of DBS.
Do note that ESG ratings are not about determining whether a particular investment approach is right or not. Investors should not take ESG ratings at face value but try to understand the investment approach, the product itself and the extent to which ESG factor had been considered as a part of the investment decision.
Today, many firms work on approaches to rate ESG scoring metrics for investors (governments, companies, financial institutions, fund managers and individuals). This is one of the ways to address concerns surrounding what investments or investment strategies are ESG compliant and what type of ESG approach to take.
While there is currently no unified standard for sustainable reporting, there are frameworks and voluntary reporting guidelines and standards. This has resulted in improved transparency and ability to compare corporate reporting. Moreover, an increasing number of companies are making sustainability reporting mandatory.
Learn more about " WHY SUSTAINABLE INVESTING AND WHY NOT?”
ESG-compliant companies have a tendency to outperform the market. We believe a properly structured ESG portfolio allows investors to align investments with personal values and reap the benefits of both. We would like to ensure every investor is aware of sustainability and how to incorporate it into their portfolios. ESG ratings are also being recognised as an indicator of strong long-term business models.
Learn more about "SUSTAINABLE INVESTING: FACT VS FICTION"
MSCI’s ESG methodology is designed to measure a company’s resilience to long-term, financially relevant ESG risks. They use a ‘CCC’ to ‘AAA’ scale to rate companies (ESG risk exposure and management, relative to industry peers), funds and exchange-traded funds (ETFs) based on the ESG characteristics of the portfolio.
The methodology aims to:
Learn more ESG RATING: UNDERSTANDING & USING IT
Above growing your wealth sustainably, DBS aims to help you fulfill your philanthropic goals. Philanthropy is changing and moving towards the likes of venture philanthropy as the wealthy find newer, more collaborative ways to give back to society. In the essence of doing well while doing good, venture philanthropy goes above financial support to organisations to align the soul of philanthropy with the spirit of investment to create a positive social impact.*SPO refers to Social Purpose Organization
Ready to take part in ESG investing today? Check out the latest ESG Fund Promotion here!