We have published a detailed report on ESG investing and made an attempt to identify six companies, which we think have a strong social consciousness and purpose. Globally more than $30 trillion assets now follow ESG rules. This is likely to increase, driven by both by regulation and fiduciary care. Investment data shows that good ESG companies also perform better.
There are no consistent definition for ESG at the moment. This creates a problem. Wirecard, the biggest financial fraud in Europe was ranked median on ESG rankings and was held by ESG funds. We have used UN’s Sustainable Development Goals as the framework for Pakistan.
The companies which rank well on our framework are Nestle Pakistan, Engro Corp, Engro Fertilizers, Fauji Fertilizer, Habib Bank and Searle.
This is just our first attempt. We, at KASB will continue to evangelize ESG and the need for invest for good. At KASB, our purpose is to democratize investments by being client focused and bringing financial education, and access to markets to everyone. Our initiatives such as KASB Varsity (now the largest edtech platform for financial education), KASB Blog (online news on economics and markets), KTrade app (platform for retail investments) and KASB Webinars/Access is a part of promoting this mission.
Please feel free to contact us for more questions or if you want to discuss our report on ESG.
Please find attached the detailed report.