Greenwashing has become a challenge for environmental, social and corporate governance (ESG) investment, says the SCB Chief Investment Office (CIO), which is advising investors to consider ESG ratings before allocating funds.
Rather than focusing on short-term gains, the investment analysis division of Siam Commercial Bank sees investing in companies with a focus on ESG governance issues as a positive trend.
“Amid rising interest rates and high inflation, younger investors in Gen Y and Gen Z see ESG ratings as a key element affecting their investment decisions, aside from returns on investment,” said Kampon Adireksombat, first senior vice-president at SCB CIO.
In terms of risk-adjusted returns, an ESG group outperforms a non-ESG portfolio, said SCB CIO, indicating that ESG investment is a viable choice amid an uncertain global economy.
Overall investment in mutual…
