Sustainable stocks outperformed during pandemic

Nearly a third of STI stocks announced strategy changes that focus on sustainability and governance.

Sustainability is a key theme for fund flows to the Singapore market, reported Maybank Kim Eng.

The brokerage firm noted that the government, in a bid to address challenges in environmental, social, and governance (ESG) issues, established the Green Plan 2030 to turn Singapore into a regional sustainability hub, an opportunity that some corporates seized.

"This opens opportunities from corporates seeking to reform to become greener and from global capital flows looking to minimize risk, whilst increasing weightings in sustainable assets," Maybank Kim Eng said.

Nearly a third of Straits Times Index (STI) stocks, it observed, had announced ESG-focused strategies starting 2020.

"Sustainable stocks have outperformed the STI during the pandemic, indicating investors are starting to place a premium on transparency and better risk management," the brokerage firm said.

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