2020 was a pivotal year as global EV sales grew 40% even though overall car sales fell 14%. Backed by strong policy support, changing consumer attitudes, and falling production costs, the electrification of the transportation sector is set to continue at full throttle.
The shift in demand for cars from the traditional internal combustion engine to EVs not only improves the global carbon footprint, but also provides new investment opportunities in the growing segment of Environmental, Social and Governance (ESG) standards that governments and corporates are adopting.
ESG investing is gaining ground as public discourse increases, and regulators commit to tackle climate change. Declining technology costs has also enabled the easier adoption of greener technologies, leading to record inflows in ESG-related investments.
The ESG investing trend is here to stay – in 2021 and beyond. The DBS Chief Investment Office believes investors would do well to recognise the paradigm shifts and be on the right side of flows when sustainability eventually becomes the indispensable norm.
*All ESG funds featured are available on the Online Funds Investment platformBNP Paribas Global Environment
Focuses on companies that help solve environmental issues.
Main themes include New Energy, Water, Sustainable Food and Waste Recovery.
MSCI ESG Ratings: AAA 1
Wellington Global Impact
Focuses on companies that help solve social issues as well as environmental ones.
Main themes include Health Care, Resource Efficiency, Affordable Housing, Education and Financial inclusion.
MSCI ESG Ratings: A
Ninety One GSF Global Environment
Focusing on companies aiming to provide positive impact on the environment through decarbonisation.
Main themes include Renewable Energy, Electrification, and Resource Efficiency.
MSCI ESG Ratings: AA
RobecoSAM SDG Credit Income
ESG-integrated Fixed Income fund. Screens out issuers that contribute negatively towards the UN Sustainable Development Goals (SDGs) and therefore deemed less sustainable.
MSCI ESG Ratings: A
If you’d like to find out more information, do check out the ESG Funds Brochure.
There is also a special loan pricing when you make a new subscription to any of the above ESG funds by 31 July 2021. The special loan pricing of COF + 0.25% applies on facility limit from value date until 31st May 2022.
Please contact your RM for more information on the product ideas.
1-min infographic
A paradigm shift towards sustainable investing60-min podcast
Kopi Time E49: Prof David Victor on decarbonisation6-min article
CIO Expert Series 2Q21: Energy TransitionFor the latest updates on Investment Strategy, please visit Market Insights.
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