Investment involves risk. Prices of investment products can be volatile and may become valueless. Past performance information not indicative of future performance. Investors should read in detail the offering documents and the Risk Disclosure Statement of the relevant investment products.
ESG Responsible for the future create a sustainable society
Importance of ESG and sustainability
Responsible for the future, create a sustainable society

KGI Asia strives to provide sustainable wealth solutions for clients, employees and society. We value long-term contributions to the sustainable development of the environment and society through effective investment strategies. Our ultimate goal is to offer a more harmonious and prosperous future, a rejuvenated physical and mental status to our investors while we have a key role to play in protecting the environment and creating a sustainable society for our next generation.

“Your investments may help shaping a healthy and vibrant planet!
We offer bespoke ESG product solutions to fulfill your investment goals and objectives, and capture the long-term growth opportunities”

What is ESG?
ESG stands for Environmental (E), Social (S) and Governance (G), which has been widely adopted to evaluate the long-term value of a company. In recent years, companies may also integrate the concept and factors of sustainable development into their long-term investment decisions.
Climate Changes, Energy Efficiency, Air & Water Pollution, Waste Management, Lands / Soils Quality
Human Capital, Labor Standards, Product Control, Information Safety, Equality
Accounting Standards, Anticompetitive Behavior, Audit Committee Structure, Board Member Diversity, Anti-Bribery & Corruption
What are the potential benefits from ESG investment?
A healthy living environment leads to a healthy life. All kinds of pollution and the greenhouse effect make beautiful nature and natural resources disappear, which affects us and our next generation.
potential benefits from ESG investment
Invest in the future and bring more positive changes to the planet for the sustainable benefit of you and your next generation.
ESG investment is not an illusory ideal concept, it’s a new focus supported by concrete reasons, and gradually become a mainstream investment strategy and new trend in the global financial market.

How may the companies be benefited by “protecting the environment, socially responsible, and outstanding governance” in a long run?
Reduce resources consumption, wastage e.g. electricity, water and paper consumption to save operating expenses in the long run
Improve corporate image, enhance employee loyalty and engagement while attract new talents with the overall improvement in corporate governance practices and social factors
Strengthen risk management and enhance the investment value by using the combinations of financial and ESG data & performance analysis

Generally speaking, high ESG-rated companies may be relatively easier in gaining strategic relaxations from regulatory policy easing and subsidies from the government
Characteristics of companies with higher ESG score
Companies with stronger ESG credentials are often benefit from improved productivity, enhanced profitability and lower cost with a balance of risk and reward in the long run.
Gross Profit
Greater competitive edge and excess returns generations, leading to better profitability and dividend payments
ESG trend at a glance

Is ESG investment simply a craze or a long-term investment?

Historical data* shows that investing in sustainable ESG companies enjoys a better return. Relatively, the trend is more notable in the EM investments

In terms of the asset size, global ESG assets are on track to exceed US$53 trillion by 2025, representing more than a third of the projected total assets under management. #

Increase in fund assets may reflect growing investors’ attention and recognition of ESG themes, in the meantime, capital inflows may enhance value of the related assets.

* Past performance information does not represent future performance
#Source:Bloomberg Intelligence: ESG assets may hit $53 trillion by 2025, a third of global AUM , 23 February 2021

Thinking of being a part of sustainable solutions?
ESG investment may help capture growth opportunities and mitigate the risk from the policies and trends, thus improving society and the environment. You could consider different ESG-themed investment with unique features including funds, bonds, and structured products to help contribute to sustainable society.

• Potential return appreciation
• Reduce portfolio risk
• Contribute to society and sustainability, as a responsible stakeholder
  • Geographical and Industry Diversification
  • Managed by professional fund managers
  • Access to various investment themes globally

SFC-authorized unit trusts and mutual funds – ESG funds***

  • BNP Energy Transition Fund
  • BlackRock Sustainable Energy Fund
  • AB Sustainable Global Thematic Portfolio
  • Schroder ISF Global Climate Change Equity Fund
  • BlackRock ESG Multi-Asset Fund
  • Allianz Food Security Fund
  • Ninety One Global Strategy Fund
  • Allianz Global Sustainability Fund
  • Neuberger Berman Short Duration High Yield Bond Fund

***Source: List of ESG Funds
  • Predictable income stream
  • Tradable in the secondary market with potential capital upside
  • Wide universe of bond issuers, currencies and tenor to choose from
  • Green Bonds
  • Social Bonds
  • Sustainable Bonds
  • Flexibly formulate products such as underlying equities, coupon, strike and tenor
  • Potential return generation and yield enhancement
  • Tailor-made risk and returns structure to cater different market situations
HK Stock

  • Swire Properties
  • CLP Group
  • Hang Seng Bank
  • HKEX
  • Power Assets
  • HSBC
  • AIA

US Stock

  • Adobe
  • Deere & Co
  • Apple
  • Microsoft
  • 3M
  • Nike
Learn more about investing in ESG
Contact Your Relationship Manager or KGI Asia Wealth Management team to learn more about ESG investment
24-hour investment hotline: (852) 2878-5555 / Email:
The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, known as the “17 Sustainable Development Goals – 17 SDG”, it provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. The goals widely cover the Environmental, Social aspects such as clean water and sanitation, decent work and economic growth and climate actions.
  • Debut Green Inflation-linked bond for retail investors in 2022
  • Hong Kong Exchanges launched Board Diversity Repository and enhance ESG Academy
  • In response to the Paris Agreement, the Government announced Hong Kong’s Climate Action Plan 2030+ in 2017, setting out the decarbonization target
  • As an important financial hub, green and sustainable bonds issuance arranged in HKSAR accounts of more than one-third of the total amount in Asia in 2021***
  • The Chin Family Blog – ESG Information

European Union

  • EU Taxonomy Article 8 was effective from Jan 2022, giving classification system to identify economic activities considered sustainable – which aims to increase the transparency in the market and mitigate the greenwashing and subsequent reputation risks

United States

  • SEC proposes “Standardize Climate-Related Disclosures” which aims to provide investors with consistent and comparable information for investment decision making.

Mainland China:

  • Carbon reduction starting from high emitting industries, like thermal power and cement, aiming to reach carbon peak by 2030 and carbon neutral by 2060
  • Shanghai Environment and Energy Exchange set stage to launch the Country-wide carbon trade to allow companies trading carbon credits


  • At current stage, there is no uniform set of standardized methodology or ESG rating to evaluate ESG investment globally and different rating agencies may have their own rating methodologies. To assess ESG investment and understand its risk-reward nature, you need to consider both financial and non-financial factors including but not limited to the overall financial performance and the ESG factors.
  • An over-concentrated portfolio may affect the investment return. In today’s changing world, ESG related topics are intertwined with policy. For example, achieving carbon neutrality and addressing climate change have become key issues and goals for many countries around the world. Investors should consider taking a diversified risk-balanced approach to capture the sustainable growth opportunities in face of ESG investment.
Frequently Asked Questions:
What does ESG stand for?

ESG consists of three pillars – namely Environmental (E), Social (S) and Governance (G).

What’s an ESG investment?

ESG investing is considered as one of the sustainable investments, which aims to generate return in a long run, as well as risk mitigation.

Is there any standardized measurement on ESG?

Currently, there’s no uniform set of standardized measurement or criteria to evaluate ESG investment globally. Having said that, there are several scoring systems and standards from global financial corporations / rating agencies such as MSCI, Moody’s, Standards and Poor’s and Morningstars. Upon evaluation of ESG ratings of a company, investors shall take into consideration of ESG ratings from different rating providers alongside its financial performance to formulate a more objective and comprehensive investment strategy.

What are the possible approaches to choose ESG corporates?

Traditionally investors may eliminate the companies that are not complying with the ESG concepts. Nowadays, investors are adopting more approaches and aspects to assess the ESG performance of a company which would include positive screening (Select the ESG leaders in the sector), consider corporate communications and impact investing, etc.

What can we provide you with the ESG product solutions?

We provide various ESG products to align your long-term financial goals, including ESG investment funds, green bonds, sustainable bonds and structured products, etc.

How can I participate in ESG investments?

You should CLICK HERE to open brokerage account with us by providing the relevant documents including risk profiling questionnaire to help us better understand your investment objectives and appetite.

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