27.3 C
Batangas

BDO follows global trend on sustainable investments, still robust amid COVID-19

Must read

- Advertisement -

BDO Unibank’s foray into sustainable investments continues to pay dividends even amid the pandemic, following the global trend of strong growth in environmental, social and governance (ESG)-themed investments.

Economic pundits observed that COVID-19 has only strengthened the importance of ESG as investors look for more resilient investments amidst economic uncertainties brought about by the pandemic.

Globally, assets under management (AUM) anchored on sustainable investments jumped 29% in the fourth quarter of 2020 to $1.7 trillion.

Domestically, BDO’s ESG Unit Investment Trust Fund (ESG UITF)—the first of its kind in the Philippines—posted returns of 13.95% and 19.90% in the last six and three months, respectively, leading to end-December 2020.

As of end-2020, the value of the AUM of this instrument grew 79% to PhP99.4 million from P55.5 million in 2016.

From Php55.5 million in 2016, the AUM of BDO ESG UITF have grown steadily to Php60.1 million in 2017, Php66.6 million in 2018, Php75.2 million in 2019, and Php99.4 million in 2020.

SUSTAINABLE ENERGY. A 54-megawatt wind farm in Pililla, Rizal with 27 turbines generates clean energy and is also a spectacle among local tourists. This is one of the many sustainable energy projects BDO Unibank, through its investment banking arm BDO Capital & Investment Corp., has funded along with other local commercial banks.

The BDO ESG UITF followed a similar higher return performance shown by ESG funds globally, proving the importance of sustainable business practices.

“While the Fund is still small, it has the potential to grow in size and importance as more investors are consciously looking for companies that protect the environment, are socially responsible, and practice good governance in a sustainable manner,” BDO said.

The BDO ESG UITF allows investors to see value in socially responsible companies as an investment destination for their funds, and to invest in one fund that covers several companies, instead of investing separately in every local company that they believe creates a positive contribution to society.

“Its importance is further heightened during this time of the pandemic, as sustainable investment amplifies the Bank’s resiliency to unforeseen global or local crises,” the Bank added.|

- Advertisement -
- Advertisement -

More articles

San Miguel Corporation (SMC) is undertaking the P44.77-billion Nasugbu-Bauan Expressway (NBEX) project that will provide a faster connection between the eastern and western portions of Batangas province. This comes after the Batangas provincial government granted the company’s infrastructure arm, SMC...
The 67th Session of the Commission on the Status of Women held on 6-17 March 2023 at the UNMHeadquarters in New York gathered representatives of member states, UN entities and non governmental organizations for the first in-person session since...
Responsive and committed government financial institution. In pursuit of its commitment to help other government institutions in optimizing operating efficiency and public service, the Philippine Deposit Insurance Corporation (PDIC) turned over previously used office, furniture, and IT equipment to...
- Advertisement -

Latest article

- Advertisement -