KUALA LUMPUR (Feb 10): Avoid companies that extract rent in socially-disruptive ways, Tantallon Capital Advisors principal Prem Manjooran said as he fielded questions on environmental, social, and governance (ESG) and impact investing at the MIDF Conversations event, which was held virtually on Thursday (Feb 10).

“You really want to make sure that you are trying to avoid companies that extract rent in socially-disruptive ways, which look to maximise short-term returns at the expense of the environment or by putting customers at risk, or by exploiting their employees or minority shareholders in any way,” Prem said.

He concluded that ESG and impact investing will be key trends in investing over the next couple of decades.

In investment terminology, ESG are non-financial factors that investors consider when making investment decisions.

Meanwhile, investors who practice impact investing take into account companies' commitment to corporate social responsibility in their profit-driven pursuits.

Launched on July 1, 2021, MIDF Conversations is a thought-leadership programme that features leading figures in their respective areas such as investment, public policies and leadership for discussions and perspectives on current issues relevant to their expertise.

Thursday’s MIDF Conversations event was moderated by MIDF group managing director Datuk Charon Wardini Mokhzani.