COVID-19 PANDEMIC GIVES POSITIVE IMPACT ON ESG COMPLIANCE

KUALA LUMPUR, June 21  -- The COVID-19 pandemic has made a positive impact on companies to improve their environmental, social and corporate governance (ESG) compliance as the outbreak has accelerated greater demand for sustainable investment.

MIDF Amanah Asset Management Bhd chief investment officer Nor Aishah Saad said analysts have seen strong correlation between the ESG investment and pandemic, which would give a key to overcome climate change and other crises effecting the global environment.

“Obviously, it gives a positive impact and we see strong correlation between the two. The outbreak has undoubtedly accelerate greater demand for sustainable investing like never before,” she said in a webinar titled, “ESG and You: Beyond Investing” organised by Malaysian Industrial Development Finance Bhd (MIDF) today.

Nor Aishah said this impact would continue to be positive moving forward, anchored by the fact that businesses do not have a choice because of the structural change and permanent shift in terms of demand and attitude.

“We have actually seen growing demand for ESG funds, with net inflow of more than US$2 trillion (US$1=RM4.14) during the pandemic period since last year,” she said.

Meanwhile, Net Zero Capital Group executive director Devendran Sinnadurai said the COVID-19 pandemic has provided a platform for companies to get involved in ESG investing.

He said companies now have accelerated focus on ESG compliance and management to overcome risks such as climate change and supply chain issues.

“For investee companies, they are now hearing of two or three transition ESG programmes driven by the environment change of the pandemic, and I think this will make us excited to look up for,” he said.

Unlike the corporate social responsibility or transparent management of the past, he said ESG is essential for the survival of companies.

“Customers also consider the companies' ESG activities in their products and services before purchasing,” he added.

-- BERNAMA