ESG-Based Preferred Stocks are Increasingly Potential in the Indonesian Market

ESG based stock options are worth your consideration. Moreover, the ESG aspect has a higher bargaining power.

Investment activities in stocks are quite a lot, in fact they always have the potential to be attractive.

This makes ESG-based investments popular today. ESG (environment, social, and good governance) makes the prospect of a line of stocks still feasible for investors to consider.

A company must pay attention to the ESG aspect. For example Corporate Social Responsibility (CSR), application of new and renewable energy (EBT), and community empowerment.

ESG shares have higher bargaining power than other issuers. This happens because of the importance of improving the company’s ESG aspects.

ESG based stock options are now quite recommended. Given that this sustainable potential affects the company.

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ESG Based Preferred Stocks in Indonesia

There are several companies that apply ESG aspects. This is because the company is increasingly promising with this.

Moreover, the demand for sustainability from an environmental and social perspective. For example, the Maybank Sekuritas company that applies ESG aspects. So that the potential for investors to look at it will be much greater.

If you compare it with companies that do not implement ESG aspects, this potential has support for the green taxonomy policy of the Financial Services Authority (OJK).

In addition, government programs are also able to provide ESG-based investment opportunities in Indonesia. For example, an electric car which in the next few years has 2 million units and according to predictions will continue to grow.

At the same time, battery investment also comes in. This is where ESG-based stock options are increasingly taken into account.

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Green Taxonomy

Actually there are many ways that investors can do in carrying out investments. The green taxonomy is a big step from OJK and becomes the standard guide for all capital market and financial services players.

So that the implementation and criteria of ESG can be carried out in a measurable manner. ESG-based preferred stock, apart from manufacturing projects there are other projects based on green funding.

Both are one of the investments that are quite attractive to investors.

Currently, the green financing portion has only reached 5%. The total funding is in the ASEAN region.

The demand for this sustainable project has a higher ESG principle. This is an opportunity for Indonesian companies to participate in the competition.

In addition to continuing to hit, ESG-based investment is also a trend and is focused on today’s young generation.

You can see the implementation of ESG investment from issuers and public information scores in periodic reports. If a company does a good ESG practice, it will usually proudly say the same.

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However, it is different for companies whose ESG reporting is not good, you can ask why. The implementation of ESG-based stock options is now quite promising.

You can see this from several aspects of Indonesia’s economic recovery period. The portion of green funding in Indonesia is actually bigger when compared to conventional ones. (R10/HR-Online)

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