Eco-Business

Why is #Singapore so far behind #Malaysia on responsible investing?

On numerous fronts, Singapore outcompetes its regional rival Malaysia. But in terms of the sustainability of their capital markets, Malaysia trumps Singapore in responsible investing. Malaysian asset managers are more confident than their Singaporean counterparts that responsible investments will outperform regular investments. A recent Bloomberg study shows that 67% of Malaysia’s investment community believes that portfolios underpinned by environmental, social and governance (ESG) factors will perform as well as or better than regular investments. In Singapore it is 58%. The survey also found that a quarter of asset managers in Malaysia had developed their own internal ESG scoring models, compared with just 13% in Singapore. Large Malaysian asset owners are signatories to the UN Principles for Responsible Investment, whereas Singapore’s big investors are not.

In memory of Kofi Annan: Father of the modern corporate sustainability movement

A great son of Africa and a true global leader has passed away. Kofi Annan, United Nations secretary general from 1997 to 2006 and co-recipient, with the UN, of the Nobel Peace Prize in 2001, is being mourned all over the world. As last great reformer of the United Nations, he managed to modernize its bureaucracy in critical areas such as women empowerment and global health. Kofi Annan not only had the courage to call on CEOs to embed universal values of humanity into corporate strategies and practices. He also played a critical role in the creation of the modern sustainable investing movement. Together with John Ruggie, Kofi Annan paved the way for the UN Guiding Principles on Human Rights, now the gold standard in this critical area.

Green finance to fund #Indonesia’s new development projects

Indonesia, one of the world’s biggest greenhouse gas emitters, is turning to green finance markets to fund new development projects. In February, the Indonesian government issued $1.25 billion as the first sovereign green sukuk in the world. The first corporate green sukuk was issued by a Malaysian company in July last year. The Indonesian Tropical Landscapes Finance Facility (TLFF) issued a $95 million sustainability bond to finance rubber plantations in Sumatra and Indonesian Borneo. However, Indonesia did not provide investors with a specific list of projects it was seeking to fund through the green sukuk. The opacity in implementing sustainable criteria is not uncommon in the global green bond market.

Responsible finance: #Malaysia leads the way with new guidelines

The Securities Commission Malaysia recently issued its 'Guidelines on Sustainable and Responsible Investment (SRI) Funds' to promote the growth of such funds in Malaysia. Often termed as ethical investments, SRI investments not only provide benefits to society, but also encourage corporate practices that embrace environmental stewardship, consumer protection, human rights and diversity. The new guidelines, which enable market funds to be designated as SRI funds, will widen the range of SRI products. According to the new guidelines, the policies and strategies of SRI funds must adopt one or more sustainability considerations such as the UN Global Compact Principles, the Sustainable Development Goals and other environmental, social or governance factors. The Guidelines also introduce additional disclosure and reporting requirements to encourage more transparency.

Principles for Responsible Investment launches #ESG integration guide

The Principles for Responsible Investment (PRI) announced the launch of the publication Investment Policy: Process & Practice: Asset Owner’s Guide to Complete ESG Incorporation. The new guide is aimed to help asset owners—public and corporate pension funds, superannuation funds, insurance companies, endowments, foundations, family wealth offices—in revising their investment policy and incorporate ESG considerations. The publication explains why individual asset owners should take action, how asset owners can give real substance to their commitments and presents examples from asset owners who achieved value through responsible investing. According to senior manager Don Gerritsen, this guide answers the key questions about how asset owners can integrate ESG into the investment policy.

Leading Shari’ah-compliant responsible investment firm announces support to Responsible Finance Summit

Hosted by Bank Negara Malaysia, organised by the RFI Foundation and co-organised by Middle East Global Advisors, the Responsible Finance Summit will take place on 30-31 March at Sasana Kijang, a center for knowledge and learning excellence established by Bank Negara Malaysia. The Summit has announced the support of SEDCO Capital, the Saudi firm that manages assets across a diversified spectrum of investments in real estate, equities and other businesses with a total AUM of $3.9 billion. The Summit will host a discussion between leaders in the Islamic finance and responsible investment to identify how to fully realise the emerging market responsible finance opportunity.

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