Capsphere is focused on helping SMEs & Investors with ESG interests at heart
Updated: Jan 21
ESG Investments: Investing Where It Matters
Investing takes on a whole new meaning when the purpose is to create a positive social impact. ESG investment harnesses the spirit of entrepreneurship and innovation to power social improvement – allowing investors to generate a financial return by committing their funds to a good cause.
The movement has been steadily gaining traction globally – including in Malaysia, where efforts are spearheaded by key market players. For example, the Employees Provident Fund (EPF) aims to have a fully ESG-compliant portfolio by 2030, making it one of the first Asian pension funds to publicly commit to sustainability.
The Growing Importance of ESG
The growth of ESG-related investment products exceeds USD1 trillion to date and continues to increase rapidly across major financial markets.
This reflects a growing momentum that risks and returns are no longer being assessed purely on a commercial basis, where short-term gains are prioritised at the expense of longer-term sustainability in investment performance and social good.
Greater importance is now being placed on the sustainability of business practices and their alignment with social values – highlighting an underlying desire by businesses and investors to generate returns in a socially responsible manner, and ultimately – an inherent need in all of us to do good.
What’s Holding Investors Back
A major challenge for investors revolves around the difficulty in identifying ESG-focused businesses that are able to provide societal benefits without sacrificing financial returns which are comparable to traditional portfolios.
Do these enterprises truly exist – and if so, how should investors find out?
Capsphere: Joining Forces To Do Good In Local Communities
Capsphere’s vision is to empower SMEs with ESG-focused business models or operations by connecting them with like-minded investors who wish to back a business that they believe in.
We are on a continuous lookout for ESG-focused companies who are able to demonstrate the financial viability of their business model and social impact.
Investors on our platform will now be able to finance businesses and projects that align with their values from the comforts of their own homes.
Sustainable success stories
Osmocell, a wastewater management company, is a sustainable business that Capsphere has helped to finance. The company specialises in helping industries and communities obtain clean water sustainably by designing, constructing and operating seawater and wastewater treatment as well as filtration systems.
ESG Investing - Conclusion
The popularity of ESG investing shows no signs of slowing, as investors have become more conscious of companies’ global impacts following the COVID-19 pandemic.
With more efforts targeted to support the growth of ESG initiatives, the market size of ESG-related products is likely to hit USD53 trillion globally by 2025.
As such, there is expected to be an abundance of opportunities for morally-responsible investors in the years ahead.