Overview
Over the years, sustainable investing has gained increasing global attention as the world transitions to a greener, more sustainable future. Investors, corporates, and the public sector share the same sentiment to fight climate change, and are demanding greater accountability for environmental, social and governance (ESG) issues.
Key Facts and Trends
Sustainable investments account for 35.9% of total AUM
Globally, sustainable investment assets under management (AUM) made up a total of 35.9%Source: Global Sustainable Investment Alliance (GSIA) 2020 report. total AUM in 2020, up from 33.4% in 2018.
US$35.3 trillion in global sustainable investment
At the start of 2020, global sustainable investment reached US$35.3 trillion in five major marketsThe five major markets are Europe, United States, Canada, Australasia and Japan. , which is 15% higher than the previous two years.
ESG integration most common sustainable investment strategy
The most common sustainable investment strategy is ESG integration, followed by negative screening, corporate engagement and shareholder action, norms-based screening and sustainability-themed investing.
Share of managed assets with ESG overlay to total AUM in Singapore stood at 33%
Sustainable investing is increasingly taking centre-stage in Singapore. In 2020, the share of managed assets with ESG overlay to total AUM in Singapore stood at 33%, up from 28% in 2019.
MAS' Initiatives
Singapore Stewardship Principles for Responsible Investors
The Singapore Stewardship Principles (SSP) for Responsible Investors provide useful guidance to foster good stewardship and create sustainable long-term value for all stakeholders.
Learn more information about Singapore Stewardship Principles
Green Investments Programme
The US$2 billion progamme was set up to invest in public market investment strategies that have a strong green focus. This will help to enhance the climate resilience of Singapore’s official foreign reserves, attract sustainability-focused asset managers to Singapore and catalyse funding towards environmentally sustainable projects in Asia and beyond. Aside from establishing their Asia Pacific sustainability hubs in Singapore, the asset management firms appointed under the programme will develop their green finance research capabilities, launch new sustainable strategies or anchor green FinTech solutions in Singapore.
Learn more information about the Green Investments Programme