When I first started investing, all I cared about was the returns. But lately, I’ve come to realise that returns aren’t just about dollars and cents. It is also a matter of impact on the world that sustains me.

Sustainability already touches our everyday lives. Think about the small shifts we’ve made: paying for single-use plastic bags, offsetting carbon when we fly or switching to energy-efficient appliances.

Finance has its own version of sustainability, and it runs deeper than eco-habits. It’s about reshaping entire financial flows towards a future that’s fairer, greener and more resilient. In short, it’s about responsible investing.

But what does it actually mean to invest responsibly? And how can I, as an investor, make sure my money is working not just harder for me, but also better for this world?

In this article, I’ll share what I’ve learnt from my research so far:

• What responsible investing really means
• Why responsible investing should matter to you
• Strategies for investing responsibly
• How to tell if your financial services provider delivers its promises
• How you can get started
• Trends to watch in responsible investing

What responsible investing really means

It isn’t always intuitive what responsible investing looks like to investors.  

If you’re like me and care about sustainability but are unsure how to act, you’re not alone. Singlife’s Sustainable Future Index shows that while seven in 10 people in Singapore believe sustainability is important for the future, only three in 10 are actively contributing.¹ The gap between awareness and action is clear.

After speaking with Singlife’s Sustainability team, I realised responsible investing isn’t just about picking “green” companies. It’s about systematic change, aligning portfolios with values like sustainability, fairness and accountability.

Why responsible investing should matter to you

Responsible investing is no longer a niche. Globally, sustainable funds have crossed USD 2.4 trillion in assets under management.² More interestingly to me, studies show that Environmental, Social and Governance (ESG) funds can perform on par with, or even better than, traditional funds.³

Beyond financial performance, responsible investing means your money is working in line with your values. As it grows, the money you invested could also support things like cleaner air for your family, safer workplaces for the people who make the products you use as well as more resilient communities for children to grow up in. For me, that alignment makes investing more meaningful than just a matter of returns.

Strategies for investing responsibly

So, what can we do to invest responsibly? Here are the three approaches I’ve recently discovered.

1. Screen the companies in each fund

Before investing, take a closer look at what’s inside each fund. Screening the companies it holds helps you see whether they align with your values. For instance, by excluding certain industries through negative screening (like tobacco, arms manufacturing, or fossil fuels), or by prioritising those driving positive impact through positive screening (like clean energy or fair labour practices). It’s a simple way to keep your portfolio consistent with your principles.

Tips for investors:

• Read a fund’s factsheet or prospectus to check if it excludes controversial industries.
• Look for terms such as “fossil fuel free”, “exclusions policy” or “ESG-screened”.
• Watch out for greenwashing, where companies falsely present their products as more environmentally sustainable than they actually are. If exclusions aren’t clear, ask questions or check for third-party certifications like Morgan Stanley Capital International (MSCI) ESG Ratings or Morningstar Sustainability Ratings.

2. Invest with ESG in mind

ESG might sound like a buzzword, but it simply means looking at how a company treats the planet and its people, and how responsibly it’s run. For example, does it keep its carbon emissions low? Are workers treated fairly? Is the leadership transparent and accountable? 

Tips for investors:

• Look for funds that prioritise companies cutting down on pollution and carbon emissions. You can do this by checking if a fund tracks low-carbon indexes such as the MSCI Low Carbon Target Indexes.
• Review ESG ratings from providers like MSCI, Sustainalytics or Morningstar.
• If you have invested in other types of funds like Exchange Traded Funds (ETFs) or unit trusts, see if they share a list of companies within these funds and whether those companies are part of initiatives like the United Nations Principles for Responsible Investment (UN PRI), of which Singlife was the first signatory in Southeast Asia.

3. Look for signs of active ownership

This is when fund managers go beyond buying and holding shares in a company, to actively working with their board or management team to ensure their business practices have more positive impact on the environment or community.

Tips for investors:

• Look for managers who publish reports or case studies of their engagement efforts.

How to tell if your financial services provider delivers its promises

As I learned more, I started wondering how to recognise if a financial services provider is genuinely committed to responsible investing. Here are two questions that can help:

• Transparency: Do they publish their sustainability commitments and goals?
• Accountability: Do they report on measurable outcomes from their green investments, and share evidence like certifications or UN PRI membership?

That made me curious – how is Singlife walking the talk?

From its latest sustainability report, I found that:

• Singlife’s low-carbon strategy in listed equities led to a 3% reduction in emissions intensity across its portfolio.
• More funds are being allocated to MSCI Low Carbon Target Indexes, which exclude companies in weapons, ESG controversies, coal and oil sands.
• By mid-2025, one fifth of Singlife’s listed equities were managed by Amundi, a firm with a strong track record in responsible investing and active engagement.
• Since FY2022, Singlife has more than doubled its investments in climate solutions such as green public transport, solar and wind projects.

These points indicate that Singlife is making tangible moves and progress when it comes to embedding responsible investing into its strategy. This helps me see how its investments might contribute to something beyond just financial returns.

How you can get started

Ready to start your responsible investing journey? If you want to take action, follow these simple steps:

1. Clarify your values. Are you most concerned about climate action, social equity or corporate governance? Knowing what matters to you helps you filter investment options that align with those priorities.

2. Match your values to fund strategies. Read fund factsheets carefully to see how each fund approaches ESG. Look for exclusions (e.g. fossil fuels, weapons), sustainability goals and whether they follow recognised frameworks like the UN PRI.

3. Build a diversified, values-aligned portfolio. Invest across asset classes while staying consistent with your principles. Responsible investing doesn’t mean compromising on financial goals.

4. Pick a platform you’re comfortable with. Explore available platforms before you start. For instance, GROW with Singlife and dollarDEX by Singlife are investment platforms offering over 100 ESG-aligned fund choices (Promo alert: dollarDEX is offering S$100 bonus units for every S$10,000 invested, up to S$15,000! Promo ends on 31 Dec 2025.), while Singlife Savvy Invest II is an investment-linked plan that currently provides access to 16 sustainable sub-funds, giving you options to start small or go deeper.

Trends to watch in responsible investing

Beyond this, you can consider other methods of responsible investing, including focusing beyond traditional ESG screens toward more targeted and thematic opportunities. These trends reflect growing interest in causes that drive real-world impact, from advancing gender equity to tackling climate change and building a circular economy.

Why responsible investing is here to stay

Responsible investing is about more than avoiding harm. It is about shaping the future we want to live in.

Small steps compound. Every dollar invested in ESG-aligned funds signals demand for a more sustainable and equitable system.

For me, responsible investing means I can grow my money while also shaping the world I want my child to live in. And it’s heartening to know that even in tiny Singapore, companies like Singlife are committed to building a sustainable future and making it easier for us to do it together.

^Notes:

^{1. Source: Singlife, “Sustainable Future Index 2024”, published February 2025.}

^{2. Source: Morningstar, “Global ESG Fund Flows Increase in Q4”, published 29 January 2025.}

^{3. Source: Institute for Energy Economics and Financial Analysis, “ESG funds continue to thrive and outperform traditional funds across equity and fixed-income asset classes”, published 10 June 2024.}

^{Navigator Investment Services Ltd (“Navigator”), is a wholly owned subsidiary of Singapore Life Ltd. (“Singlife”). dollarDEX by Singlife and GROW with Singlife are platforms owned and operated by Navigator. Singlife has an introducer arrangement with Navigator, a Capital Markets Services Licensee. As an introducer to Navigator, Singlife will not receive any remuneration.}