all point towards the country’s growing sustainability commitment.
Several years ago, we examined how financial markets priced the environmental, social and governance activities of publicly listed companies. Many firms, with their traditional business models, were not reputed for their ESG credentials. But when they tried to do better, results showed that investors paid attention.
Navigating this change won’t be easy. Companies now need people who can distil the complicated relationship between environmental action and financial valuation. New skills are required to properly budget and value sustainability initiatives, and to evaluate their potential impact on firms and our society.Recruiting more people into sustainable finance is also a challenge.
This can hamper firms from taking the plunge into sustainable investing. According to a September 2021 HSBC survey, 40 per cent of institutional investors in Asia are “held back from more ESG-based investing due to a shortage of expertise or qualified staff”. This figure is up from 26 per cent in 2020.
For example, we found that the improvement of plumbing in HDB flats, as well as the installation of visible meter readers, resulted in lower household water consumption.