Discover SGX’s Commitment to Sustainable Investing

October 13, 2023

As we journey further in the “Discover SGX” series, after exploring the diverse portfolio opportunities in Chapter Four, we turn our focus to a pivotal aspect of SGX’s strategy – its commitment to Sustainable Investing.

Sustainable Investing is not just a trend but a necessity as the world grapples with the challenges of shaping an economy fit for the 21st century and beyond. By 2050, the world must cater to the needs of over 9 billion people, with more than 5 billion anticipated to reside in Asia.

SGX: Fostering Economic Growth Hand-in-Hand with Sustainability

Recognising the interdependence between economic growth and sustainability, SGX positions itself as the region’s most international and trusted exchange, aiming to reshape a sustainable future. SGX understands that this mission requires a collective effort, and thus, it actively fosters collaboration within the ecosystem to catalyse change and promote growth in a sustainable manner.

SGX FIRST: A Platform for Change

Anchored on three pillars, SGX FIRST serves as the cornerstone of SGX’s sustainability initiative. This platform facilitates collaboration among various stakeholders, bringing together different sectors of the ecosystem to work towards a common goal – building a more sustainable and inclusive global economy. Through SGX FIRST, the exchange encourages dialogue, knowledge sharing, and partnership, driving innovations and solutions in the field of sustainable investing.

A Catalyst for Sustainable Growth in Asia

As Asia is projected to be home to over 5 billion people by 2050, SGX’s role as a catalyst for sustainable growth in the region is more crucial than ever. The exchange actively engages with companies, investors, and regulators to promote sustainable business practices and investment strategies, aligning economic activities with environmental, social, and governance (ESG) principles.

Encouraging ESG Disclosure and Transparency

SGX plays a pivotal role in promoting ESG disclosure and transparency among listed companies. By enforcing stringent reporting standards and guidelines, SGX ensures that companies disclose relevant ESG information, allowing investors to make informed decisions based on both financial and non-financial factors. This transparency builds investor trust and confidence, attracting more capital to companies that are committed to sustainable practices.

Facilitating Green Finance

In line with its commitment to sustainability, SGX actively facilitates the growth of green finance. The exchange supports the listing and trading of green bonds, sustainability-linked bonds, and other green financial instruments, providing companies with the necessary capital to undertake environmentally friendly projects and initiatives. This not only contributes to environmental conservation but also opens up new investment opportunities for those looking to align their portfolios with their values.

SGX is leading the sustainability initiatives in the region

SGX’s commitment to sustainable investing is a testament to its foresight and responsibility as a leading exchange in the region. Through initiatives like SGX FIRST and its active promotion of ESG principles, SGX is contributing to the development of a sustainable global economy that is poised to meet the needs of over 9 billion people by 2050. As we continue to uncover the multifaceted offerings of SGX in this series, it is evident that SGX’s dedication to sustainability is shaping its strategy and offerings, making it a forward-thinking and reliable platform for investors globally.

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.

Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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