SINGAPORE (Sept 20): Investing on Environmental, Social and Governance (ESG) principles is a niche area of financial markets that is gradually becoming mainstream, says Nina Hodzic, an ESG specialist at NN Investment Partners.

Hodzic who visited Singapore earlier this month for a conference on responsible investing, says investors who dismiss ESG as a viable strategy may not just miss profitable opportunities but warning signs of investing pitfalls in companies with shortcomings in ESG compliance.

“In the past, this space was more about excluding (undesirable) sectors like tobacco or nuclear energy, but now, it has shifted more into looking at the opportunities from an ESG perspective,” she explains. “So, when we look at companies, we look into their ESG policies, whether they have management systems in place, how they perform from an ESG perspective or whether there are any big issues or controversies.”

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