According to GSI Alliance, the
portion of retail investors that is investing in sustainability has increased
to 25% by 2018, and we have started to see sustainability / green investing
related products being available in the market for retail investors.
As we make more conscious choices
around what we wear and what we use, we can also think about where we can
manage our personal finances in a way that will bring positive impact.
Where can we start? Just like how we
proactively go and look for recyclable products (e.g. glass / aluminum straws,
portable cups), we also need to proactively look for investment opportunities
in sustainability. It may be few and far between at the beginning, but as
demand grows, the supply will also follow. For example, in the UK, there are
now deposits that specifically ties to sustainability investments. We can all
participate in the search and drive up the demand!
舉例來說，亞洲開發銀行（Asian Development Bank）在融資階段之外，亦會參與設計階段的工作。換言之，亞洲開發銀行並不只是被動地在項目融資過程中進行篩選，更會主動參與項目的設計，例如探討如何在基建設計中融入氣候風險的考量。相較之下，亞投行（AIIB）等其他國際發展機構則只進行投資篩選而不涉足項目設計，或未能充分推動可持續基建的發展。
In the
current economic climate, companies are under pressure to perform or even just
survive. New initiatives are often met with resistance as people struggle to
keep up with their day-to-day responsibilities. Some people think that an
environmental and social governance must be big, complicated and expensive part
to play. But that is not really true. To be effective, a management system
needs to be scaled to the nature and size of the company. That is what ESG is
leading through direct business benefits. Conserving and using energy and
materials more efficiently helps to reduce production costs. Reducing waste and
discharges, and recycling can minimize costs of waste disposal, which have been
steadily increasing over time. In fact, a company can convert certain organic
waste into fuel or energy to maximize sustainability and costs savings for the
business. ESG can help a company to build processes to benchmark its
expenditures against industry standards and identify potential production and
operational cost savings.
Parallelly,
same tangible benefits can be realised on the social side. Clear, transparent
human resource policies and procedures improve communication between workers
and managers. This helps to anticipate and avoid labour problems. Effective
occupational health and safety management procedures will enable a company to
identify workplace and process hazards, so you can eliminate them or reduce
their potential negative impacts. This can not only reduce injuries and
fatalities but can also lead to bottom-line business benefits such as reduced
absenteeism and worker turnover, and lower insurance premiums for workers’
compensation.
ESG simply extends that approach to the management of the impact of company’s business on the environment, workers, and other external stakeholders.
So, the
question is, to what extent ESG can help a company’s sustainability. In my
view, companies are confronted with a number of significant environmental and
social challenges. The immediate challenges are: (1) Increasing energy and raw
materials costs (2) Growing power and influence of environmental and labour
regulatory agencies (3) Rapidly evolving consumer awareness and concerns about
environmental and social issues. These are leading investors to look at company
ESG performance before investment. The idea is, good ESG performance will
ensure long term investment benefits through risk management.
ESG data disclosure in Asia Pacific market is rising rapidly as the region’s regulators introduce new ESG reporting guidelines and stewardship requirements. This trend is especially driven by stock exchanges since ESG reporting seen as a proxy for good foreign investment and investors and governments are increasingly concerned with how companies are building long-term value. So, I would like to flag that:
HKEX should have point of validation, ESG POLICY is compliant with international standard?
Apart from the tax paying, what are the initiatives/collaborations that company is taking to tackle climate change in context of conservation and protection of bio-diversity?
Contracted workers should be counted in ESG reports to ensure social SafetyNet.
Community Investment should be planned under regulation/policy.
IMAPCT Monitoring should be included and be aligned with Sustainable Development Goals (SDG) to aggregate at global goals.
