UOB bank
Applying sustainable development principles to financial investments, taking ESG factors into account.
Environmental factors include the contribution a company or government makes to combating climate change through greenhouse gas emissions, waste management, energy efficiency and other strategies.
Social factors include human rights, labour standards in the supply chain, any exposure to illegal child labour, and more routine issues such as adherence to workplace health and safety.
Governance factors refer to a set of rules or principles defining rights, responsibilities and expectations between different stakeholders in the governance of corporations. A well-defined system can be used to balance interests.
Our technological edge in ESG integration lies in augmentation with the support of Artificial Intelligence-Machine Learning (AI-ML) models, which aids in constructing ESG investment portfolios using data inputs and analyst evaluation.
As leaders in responsible investing and active owners, UOBAM leverages our regional footprint and local expertise to enhance the ESG evaluation of our companies.
We believe that Environmental, Social, and Governance (ESG) issues are financially material to a company’s long-run performance, and that they factor into performance enhancement and risk mitigation. ESG integration enables us to identify high-quality companies which are resilient, well-managed, able to grow sustainably and are likely to maintain their competitiveness in the long term. As such, we integrate Environmental, Social, and Governance (ESG) evaluation into our investment process through our sustainable investing framework that applies across all investment asset classes.
This document is for general information only. It does not constitute an offer or solicitation to deal in units in the Fund (“Units”) or investment advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. The information is based on certain assumptions, information and conditions available as at the date of this document and may be subject to change at any time without notice. No representation or promise as to the performance of the Fund or the return on your investment is made. Past performance of the Fund or UOB Asset Management Ltd (“UOBAM”) and any past performance, prediction, projection or forecast of the economic trends or securities market are not necessarily indicative of the future or likely performance of the Fund or UOBAM. The value of Units and the income from them, if any, may fall as well as rise. Investments in Units involve risks, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by United Overseas Bank Limited (“UOB”), UOBAM, or any of their subsidiary, associate or affiliate (“UOB Group”) or distributors of the Fund. The Fund may use or invest in financial derivative instruments and you should be aware of the risks associated with investments in financial derivative instruments which are described in the Fund's prospectus. The UOB Group may have interests in the Units and may also perform or seek to perform brokering and other investment or securities-related services for the Fund. Investors should read the Fund’s prospectus, which is available and may be obtained from UOBAM or any of its appointed agents or distributors, before investing. You may wish to seek advice from a financial adviser before making a commitment to invest in any Units, and in the event that you choose not to do so, you should consider carefully whether the Fund is suitable for you. Applications for Units must be made on the application forms accompanying the Fund’s prospectus.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
Investors are increasingly applying non-financial factors as part of their analysis process to identify material risks and growth opportunities.
Socially Responsible Investing (SRI) – an earlier model typically using value judgments and negative screening to decide which companies to invest in.
ESG investing – grew out of the SRI investment philosophy and as a more modern take, involves looking at finding value in companies—not just at supporting a set of values, by incorporating intangibles into traditional financial analysis.
ESG – stands for Environmental, Social, and Governance and summarise a variety of factors that are financially material to businesses, and these include (but are not limited to):
|
Environmental
|
Social
|
Governance
|
|
|
|
From an investment standpoint, the integration of ESG within an investment strategy helps to form the foundation of what we term as ESG Investing. In general, due to its popular adoption by asset owners and managers, ESG investing has become synonymous with sustainable investing.
Sustainable investing has evolved to encompass both SRI and ESG Integration and can also be taken to mean several other strategies including:
Negative Screening and Ethical Exclusions – The process of filtering out those companies that harm people or the planet. For instance, investors might exclude those related to arms, fossil fuels, tobacco and animal testing.
Thematic and Impact Investment – Active and deliberate investment in assets due to their business purpose fulfilling a positive impact on society or environment, as is the case for example in renewable energy, clean technology and diversity and education, or investing toward the United Nations’ Sustainable Development Goals (SDGs).
Responsible Investing – similar to sustainable investing in the sense of both being the allocation of capital to investments which are sustainable. In general, when one refers to one, they also mean the other.
