DBS Boosts ESG Transparency
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The bank cited growing interest in ESG investing and said it is committed to enhancing clients’ understanding on this front.
DBS will adopt MSCI ESG Ratings for its wealth management business, which measures a company’s resilience to long-term, financially relevant environmental, social and governance (ESG) risks, the bank announced in a statement on Friday.
The ratings cover equities, bonds, and funds, and as of November 2019 are embedded in DBS’ suite of wealth products, advisory and discretionary portfolio services, the bank said, adding that it will also explore leveraging this capability to introduce ESG offerings in retail applications.
DBS called ESG investing a «growing trend that cannot be ignored,» driven partly by the intergenerational transfer of wealth to sustainability-conscious millennial investors.
«Encouraged by growing evidence of the correlation between robust ESG practices and strong corporate financial performance, more are expressing interest in incorporating ESG into their decision-making processes,» said Marc Lansonneur, head of Managed Solutions, Balance Sheet Products and Investment Governance, DBS Wealth.
Questions & Answers
Q.Which specific part of DBS's business will adopt MSCI ESG Ratings?
Which specific part of DBS's business will adopt MSCI ESG Ratings?
DBS will integrate MSCI ESG Ratings within its wealth management business. These ratings help assess a company's resilience to long-term environmental, social, and governance risks, providing clients with enhanced understanding.
Q.What types of financial products are covered by the MSCI ESG Ratings that DBS is adopting?
What types of financial products are covered by the MSCI ESG Ratings that DBS is adopting?
The MSCI ESG Ratings adopted by DBS cover a range of financial products, including equities, bonds, and funds. These ratings were integrated into DBS's wealth products and services as of November 2019.
Q.What is driving the increased interest in ESG investing according to DBS?
What is driving the increased interest in ESG investing according to DBS?
DBS attributes increased interest to the intergenerational transfer of wealth to sustainability-conscious millennial investors. There is also growing evidence linking strong ESG practices with robust corporate financial performance, encouraging greater adoption.
Q.Who within DBS commented on the correlation between ESG practices and financial performance?
Who within DBS commented on the correlation between ESG practices and financial performance?
Marc Lansonneur, who is the head of Managed Solutions, Balance Sheet Products and Investment Governance at DBS Wealth, commented on this. He noted the growing evidence suggesting a link between strong ESG practices and financial success.
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