SMU Assistant Professor of Finance Yao Tianhao said that environmental, social, and governance (ESG) risks are already impacting financial markets sooner than many realise, with current asset prices reflecting potential ESG matters in the future. He warns that consumer-facing sectors are particularly vulnerable to ESG scandals, and stresses the need for companies to improve the transparency, precision, and maturity of their ESG disclosures, and for better translation of these disclosures into reliable ESG ratings for investors.
