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At a closed-door virtual event co-organised by Tatler Singapore and Generation T Asia in partnership with HSBC, three speakers discussed why being more ESG focused in business is not just good for people and the planet, but also for profits
The world is becoming more plugged into ESG (environmental, social and governance) development, thanks to growing public awareness around issues such as climate change and employee well-being. More companies are thinking of ways to make their practices more sustainable, while individual consumers are gradually turning their attention to green investments.
The path to achieving these goals, however, isn’t always clear for everyone. How can companies and investors bring their sustainability ambitions to fruition? Three experts discussed this question and more at a virtual panel session on October 26, co-organised by Tatler Singapore and Generation T in partnership with HSBC. As a global bank, HSBC recognises the need for economic development to be sustainable and it contributes to this in several ways. This includes providing US$100 billion of sustainable financing and investment by the year 2025, and reducing its exposure in high-carbon sectors.
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The online session featured three speakers including James Cheo, chief investment officer of Southeast Asia, Private Banking and Wealth Management at HSBC; Jessica Cheam, founder and managing director of Eco-Business; and Tan Szue Hann, chairman of sustainability at the Singapore Institute of Architects. The conversation was also moderated by Karishma Tulsidas, editor-in-chief of Tatler Singapore.
Here are some highlights from the discussion.
The positive impact of ESG on business
Years of fossil fuel disinformation have made many of us believe that cleaning up our act is costly, more costly than the status quo perhaps—but the data is saying otherwise.
“Companies who are ESG leaders tend to outperform the general index by at least one to two percent,” shared Cheo. He also added that due to better management practices, such companies are able to ride through major crises more smoothly and report stronger profits. “They tend to have higher profitability—around 18 percent more—than the companies at the bottom 10 percent of the ESG scoreboard.”