DBS Boosts ESG Transparency

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.