ESG, short for Environmental, Social, and Governance, is no longer just a buzzword—it’s the driving force behind companies reshaping our world. Patagonia, a US outdoor clothing retailer, is a great example. Back in 1985, its founder, Yvon Chouinard, pledged 1% of its sales as part of the 1% For the Planet initiative. Since then, it has also introduced many other initiatives as it embraced the “reduce, reuse, and recycle” philosophy, which may seem contrary to what a clothing brand does. Internally, Patagonia also prioritises its employees and workplace culture. Patagonia’s story shows how purpose-driven business decisions can redefine success. Many companies now realise their impact on the planet and its people. With a clear ESG strategy, companies can minimise negative effects and, better yet, turn them into positives.
Investors today can align their values with their investments, aiming for both purpose and profit. ESG investing evaluates companies based on non-financial factors like carbon footprint and Diversity & Inclusion (D&I) policies. These metrics aren’t mandatory, but companies are increasingly disclosing them in sustainability reports.
Companies neglecting ESG risk alienating customers, investors, and suppliers. A case in point is Top Glove, a Malaysian company criticised for labor practices during the pandemic. Their North American sales plummeted by 68% year-on-year by volume in the March to May 2021 period due to ESG shortcomings.
Investors now have the power to support environmental causes and address social issues through ESG investing. Whether you’re concerned about carbon footprints or human rights, there are ESG funds tailored to your values. These funds curate portfolios of companies meeting specific ESG criteria.
SDGs, or Sustainable Development Goals, are part of the United Nations’ 2030 Agenda for Sustainable Development. Adopted by UN member states in 2015, it is a shared blueprint for peace and prosperity for people and the planet. The series of 17 goals range from zero hunger and gender equality to climate action, and the deadline for completion is 2030.
Brunei Darussalam made significant progress in 2022 towards maintaining and improving key areas as it recovered from the pandemic, according to the Special National Coordinating Committee. The nation has shown notable advancements in achieving Sustainable Development Goals (SDGs), with a strong emphasis on Quality Education and Sustainable Cities and Communities, as highlighted in the Sustainable Development Report for Brunei Darussalam.
Can ESG investments deliver profits alongside purpose? Research suggests they can:
S&P Global Market Intelligence found ESG funds outperformed the S&P 500 during the pandemic’s first year. Morningstar reported substantial inflows into sustainable funds in 2022, indicating growing investor interest. ESG portfolios may experience market volatility, but the momentum behind sustainability remains strong. Climate change is real, and it’s here. Our future depends on making sustainable choices today. ESG and SDGs offer a roadmap for a better tomorrow—a world that preserves resources for generations to come.
The world’s challenges, from climate change to societal issues, demand action. In alignment with your commitment to the planet, people, and profit, we have made ESG investing accessible through four unit trust funds via Baiduri Capital. Our goal is to empower you to invest responsibly and reap both financial and societal benefits.
Baiduri Capital, as a member of Brunei Darussalam Capital Market Association, is pleased to support the World Investor Week (WIW) 2023 initiative by IOSCO in collaboration with Brunei Darussalam Central Bank from 2 – 8 October 2023. The WIW is a week-long global campaign promoted by IOSCO to raise awareness about the importance of investor education and protection and highlight the various initiatives of securities regulators in these two critical areas.
Interested to start your ESG investment journey?
Feel free to reach out to Baiduri Capital at +673 226 8588 (during office hours) or baiduricapitalservices@baiduri.com
Scan to visit our website
Disclaimer: The information provided to you in this article has been compiled from online website(s) owned/operated by third party(ies) and a list of the respective online website(s) is available at Baiduri Bank’s website, www.baiduri.com.bn/personal/learn. The information in this article is intended for your general information and/or convenience only and shall not be construed or considered as Baiduri Capital’s endorsement, recommendation, approval or verification of the linked website, its contents or any other links therein. Baiduri Capital is not responsible or liable for any losses, expenses, costs, damages, liabilities or other consequences of whatsoever nature suffered directly or indirectly by you in connection with (1) your use of the information within this article, including without limitation the contents of a linked website, or consequences of accessing any linked website or a link contained in a linked website; (2) your provision of any information through the use of any hyperlink or a linked website. You agree that your use and access as described herein is entirely at your own risk.
Issued by Baiduri Capital Sendirian Berhad
(Company Registration No. RC/00009742)
