In this exclusive interview, we sit down with Sean Chin MQ, and we’ll discuss advice for individual investors interested in ESG and ethical investing and its impact on financial markets. We’ll also take a glimpse into the future, outlining the potential of sustainable investing in emerging areas such as carbon credits and blockchain technology.

Please introduce yourself and tell us what you do. How did you get into the financial space?

I’am the Investment Director at Olritz Financial Group. My finance journey began in the banking sector with pivotal roles at OCBC Bank and Standard Chartered Bank, where I developed a foundational understanding of the financial markets. My ambition and strategic insights led me to establish Olritz Financial Group, focusing on asset management and expanding our presence internationally.

From your perspective, how do you believe incorporating Environmental, Social, and Governance (ESG) principles contributes to sustainability and profitability within the financial markets? 

Incorporating ESG principles is crucial for long-term sustainability and profitability. It drives responsible investment, aligns with global ethical standards, and addresses the increasing demand from investors who seek financial returns and positive societal impact. By integrating ESG factors, businesses can mitigate risks, foster innovation, and capitalize on emerging opportunities in sustainable markets, ultimately enhancing their financial performance.

How do you incorporate ESG into the firm’s risk management framework? 

At Olritz, we integrate ESG considerations into our risk assessment by evaluating our investments’ environmental and social impact and the governance practices of the entities we invest in. This approach allows us to identify potential risks and opportunities that traditional financial analysis might overlook, ensuring a more comprehensive risk management strategy.

Are there specific instances where ESG considerations have translated into financial success for Olritz?

Certainly, our focus on renewable energy projects, for example, has supported environmental sustainability and delivered robust financial returns. This sector has shown resilience and growth potential, aligning with our investment ethos and yielding tangible benefits for our clients and the environment.

Can you share a specific success story or example that illustrates the positive impact Olritz Financial Group has experienced from its early focus on ESG investments?

At Olritz Financial Group, we have seen tangible financial success stemming from our ESG considerations, particularly in our investments in Sharia-compliant green funds. This approach has opened up new revenue streams for Olritz while aligning with our commitment to responsible and sustainable investing. The success of this venture underscores the financial viability of ESG-focused strategies and their potential to yield substantial returns.

Sustainable investing often involves balancing ethical considerations with financial returns. How does Olritz strike this balance?

Striking this balance involves rigorous due diligence and a deep understanding of market dynamics and our investments’ broader impact. We actively seek opportunities where ethical considerations and financial returns are not mutually exclusive but complement each other, leading to sustainable growth.

What challenges or opportunities arise when aligning investment decisions with ESG criteria?

The main challenge is the varying definitions and measurements of ESG criteria, which can lead to ambiguity in decision-making. However, this also presents an opportunity to develop robust evaluation frameworks and capitalize on emerging trends in sustainable investing.

How can ESG-conscious investments contribute to long-term financial success, in your view?

ESG-conscious investments can drive long-term financial success by fostering resilience, tapping into sustainable growth markets, and building brand value and reputation. They also help anticipate regulatory changes and societal shifts, positioning investors to benefit from these transformations.

From your perspective, what role does ESG play in mitigating potential environmental, social, and governance risks?

ESG plays a pivotal role in identifying and mitigating risks that could have long-term implications on investment performance, such as environmental liabilities, social unrest, or poor governance practices. It helps in creating a sustainable and resilient investment portfolio.

For individual investors interested in ESG, what advice would you personally give them? 

Educate yourself on ESG criteria and market trends, understand the long-term benefits of sustainable investing, and align your investment choices with your values. Seek advice from professionals who have expertise in ESG investing.

From your experience, what steps can investors take to make informed and impactful decisions that align with their values and financial goals?

Investors should conduct thorough research, utilize ESG ratings and reports, and consider their investments’ financial and societal impact. It’s also important to have a diversified portfolio that includes ESG-focused assets.

Looking ahead, what strategies do you consider to integrate ESG criteria further into Olritz Financial Group’s investment approach? 

Looking forward, our strategy at Olritz Financial Group is to deepen our engagement in the carbon value chain through innovative investment products, particularly in the carbon credits market. We plan to leverage blockchain technology to create a dynamic platform for carbon credit trading, which aligns perfectly with ESG criteria. This approach emphasizes our commitment to environmental sustainability and allows us to explore new frontiers in financial technology, enhancing the effectiveness of our ESG integration.

Are there specific areas or industries where you see significant potential for sustainable investing in the future?

The future of sustainable investing is incredibly promising, especially in areas like carbon credits and blockchain technology. We foresee a significant potential in the Over-the-Counter (OTC) carbon credits market, which is an emerging and crucial sector in the context of global climate goals. 

This market presents unique opportunities to invest in environmental sustainability while generating substantial financial returns. Furthermore, integrating blockchain technology in this space opens new avenues for transparent and efficient carbon trading, highlighting an innovative intersection of finance, technology, and sustainability.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Original: Investing Feed: Ethical Investing, Wealthy Returns: ESG’s Role in Financial Markets