Environmental, social and governance (ESG) investments will cause short-term pain for corporates and investors but in the long-term, it will create sustainability and good corporate governance, according to Malayasia’s second largest pension fund Kumpulan Wang Persaraan (Diperbadankan) (KWAP).
“In ESG-related investments, Malaysia and the region are still at a nascent stage. We are not able to specify the kind of returns that could be generated from ESG investments. But in the long-term, it will create a more sustainable environment not just for the corporate, but the world as well. We have to start somewhere,” KWAP director for corporate strategy and performance department, Ismail Zakaria told DEALSTREETASIA on the sidelines of KWAP Inspire: Environmental Conference 2018.