Integrating ESG Factors in the Investment Process. This trend is likely to continue in the coming years because ESG integration in the mainstream investment process provides a clear opportunity to optimize the risk–return characteristics of your portfolio. From a practitioner’s perspective, one of the key challenges is how to integrate these factors in a company’s valuation, an interesting area that is still in development. Today, investors are still using several different ways of applying ESG factors in company valuations.

Singapore has been proactive in promoting sustainable finance and ESG integration. The Monetary Authority of Singapore (MAS) has launched initiatives to encourage financial institutions to consider ESG factors in their decision-making processes. These efforts align with global trends toward responsible investing.

ESG has become one of the key directions for future investment analysis. Consideration of ESG factors are perceived as part of investment risk management. We can also see increasing demand from investors to pay attention to ESG related factors.