Environmental, Social, and Governance Investment: Opportunities and Risks for Asia
Interest in environmental, social, and governance (ESG) investment has been growing steadily around the world, and investors are increasingly integrating ESG factors into their investment decisions.
ESG investment has the potential to bridge the gap between traditional capitalism and the newer concepts of shared economic and social value and sustainable and inclusive finance. It can also act as a driver for incentivizing the private sector to tackle environmental and social challenges, such as those related to renewable energy, employee training and education, and the gender gap. These benefits can in turn help to boost corporate value and economic growth.
However, concerns remain on many issues, such as unclear and dispersed criteria for sustainable investment, the low quality of non-financial data, lack of disclosure, and resource misallocation risks. These obstacles are critical for many countries in Asia and the Pacific whose stages of development have not yet reached those of more developed countries.
This timely book investigates the current state of ESG investment and examines the risks and benefits using an evidence-based approach. It aims to contribute to developing a framework for future analysis and monitoring to ensure the growth of ESG investment while exploring innovative ways for economies in Asia to leverage the benefits for sound and sustainable development.
- Foreword by Kiyotaka Sasaki
- 1. Environmental, Social, and Governance Investment: Concepts, Prospects, and the Policy Landscape by Upalat Korwatanasakul
- 2. Competition in Extra-Financial Information Disclosure Frameworks and Standards: Significance and Challenges for Effective Convergence by Toshikazu Hayashi
- 3. Environmental, Social, and Governance Factors and Their Implications for Equity Investments by Yasuyuki Kato
- 4. How Will Environmental, Social, and Governance Factors Affect the Sovereign Borrowing Cost? by Naoko Nemoto and Lian Liu
- 5. Optimal Portfolio Selection for Environmental, Social, and Governance Investment by Naoyuki Yoshino, Farhad Taghizadeh-Hesary, and Miyu Otsuka
- 6. Measuring the Effect of Environmental, Social, and Governance Investment on Banking in Indonesia and How Fiscal Policies Contribute by Abdul Aziz
- 7. The Ineffectiveness of Environmental, Social, and Governance Policies and Incentives: The Impact of the Generalised Scheme of Preferences Plus on Central Asian and South Asian Countries by Muhammad Ayub Mehar
- 8. Environmental, Social, and Governance Investment in Green Energy Projects in Southeast Asia: Potential, Drivers, and Policy Options by Falendra Kumar Sudan
- 9. Corporate Social Responsibility and Financial Performance in Microfinance Institutions by Mahinda Wijesiri and Diane-Gabrielle Tremblay