[2021 Asia Financial Forum] Eugenia Ko "Sustainable Investment Positively Impacts Corporate Profitability"

Creating Financial, Social, and Environmental Benefits through Sustainable Investment
"Sustainable Investment Incentives Can Be Gained from Green Investment"

Eugenia Ko, Head of Sustainable Investment at Standard Chartered Bank, is giving a lecture at the "10th 2021 Seoul Asia Financial Forum" hosted by Asia Economy on the 25th at the Grand Ballroom of Westin Chosun Hotel in Jung-gu, Seoul. Photo by Jang Jin-hyung aymsdream@

[Asia Economy Reporter Minji Lee] “Sustainable investment is not always a good investment. True sustainable investment should be able to pursue improvements in environment, society, and governance as well as profitability.”

Eugenia Ko, Head of Sustainable Investment at Standard Chartered Bank, attended the ‘2021 Seoul Asia Financial Forum’ held at the Westin Chosun Hotel in Sogong-dong, Jung-gu, Seoul on the 25th, and said that sustainable investment is a solution investment that creates financial, social, and environmental benefits, which positively secures corporate profitability.

Ms. Eugenia Ko explained, “An analysis of 2,200 reports studying ESG and corporate financial performance from the 1970s to 2015 showed that ESG management improves corporate financial performance,” adding, “It is a misconception that ESG management negatively affects corporate financial structure.” ESG management also showed high performance in the stock and fund markets. Since the end of 2019, the Morgan Stanley Capital International (MSCI) Global Index fell about 12%, whereas the ESG Leaders Index only declined by 10.9%.

Ms. Eugenia Ko forecasted that sustainable investment incentives can be gained from green investment in the future. Especially in the climate sector, many people are expected to make significant efforts to eliminate climate risks, which is anticipated to increase investment potential. She added, “For green investment to be meaningful, the capacity and space for green investment must be supported,” and “Operating sustainable finance officers and teams to capture opportunities and create the necessary conditions is positive.”

Ms. Eugenia Ko leads sustainable investment at Standard Chartered Bank. She mentioned that the bank reviews the bond framework (investment norms) annually to build ‘Net Zero’ (achieving net-zero greenhouse gas emissions) to accelerate green investment at the bank level. She also plans to actively engage in product innovation to mitigate the risks of greenwashing. Ms. Eugenia Ko said, “Providing financing for solar projects in emerging and underdeveloped countries is also positive for green investment,” and “Investing in Etihad Airways’ Sukuk (Islamic bonds) in the Middle East to promote the use of sustainable fuels is another method.”

This content was produced with the assistance of AI translation services.