Wetlands help fight climate change, so can ESG investing February 3, 2022

Wetlands help fight climate change, so can ESG investing

Today, climate change is a hot-button topic for the world, and we feel the impact of these issues on our everyday lives through adverse weather events and other changes in the environment. There is realisation of the economy’s dependence on nature’s ecosystem services and natural cycles.

World Wetlands Day, which was on Feb 2, aims to raise global awareness about the vital role of wetlands for people and planet. It holds special significance for the world as we battle to make our planet safe for us and for future generations. This is because wetlands are crucial in helping fight climate change by storing large amounts of carbon dioxide. They are home to a vast array of biodiversity, and also help with water purification and flood control.1

In a report published in the journal Earth-Science Reviews, scientists at University of Adelaide led by Associate Professor Luke Mosley, from the University’s Environment Institute and School of Biological Sciences, say: “Globally, wetlands cover an area greater than 12.1 million square kilometres and deliver at least US$27 trillion in benefits per year, such as for flood mitigation, food production, water quality improvement and carbon storage.”2

Nature-based solutions, like high quality mangroves, are tools considered in ESG investing in achieving positive change needed to address dire environmental challenges we face today.

Today ESG investing is part of a collective approach to known as responsible investment.3

ESG investing is a strategy you can use to put your money to work with companies that earn healthy profits and do so considering the risks and limits of nature and their responsibilities to communities around them.

At Phillip, we invest in companies that are aligned to climate and sustainable development goals, and rely on research and ratings to measure and monitor sustainability outcomes from investments.4

According to Bloomberg, by 2025 a third of assets under management — worth over US$50 trillion — could be ESG investments.

According the Nasdaq.com, the S&P Global Market Intelligence analysed 26 ESG exchange-traded funds and mutual funds with more than $250 million in assets under management. And it found that from March 5, 2020, the month that the World Health Organization officially declared COVID-19 a pandemic, to March 5, 2021, 19 of those funds performed better than the S&P 500.

The outperformers rose between 27.3% and 55% over that period. In comparison, the S&P 500 increased just 27.1%.5

So, now that environmental issues are at the forefront of global consciousness and we have investment choices to invest our money and make a difference through options like ESG investing, let us go ahead and make decisions that will ensure a sustainable future.6

And now for a touch of green fun for our Singapore readers to to mark World Wetlands Day.

Here are some wetlands in Singapore that you can visit, beginning with two of our island nation’s key mangrove areas.

Sungei Buloh Wetland Reserve

Sungei Buloh Wetland Reserve (SBWR) is Singapore’s first and only wetland reserve. It received protective status in 2002 due to its ecological significance, where public activity is limited compared to what is permitted at a nature park. Located in the northwest of Singapore, it is a haven for unique wildlife like sea eagles, smooth otters and saltwater crocodiles-the largest species of reptile in the world.

In order to extend Singapore’s natural capital as part of its City in Nature vision, SBWR was expanded to the Sungei Buloh Nature Park Network. The 400ha protected area includes important refuelling sites for migratory shorebirds along the East-Asian Australasian Flyway (EAAF) like Mandai Mangrove and Mudflat and Kranji Marshes, but also includes other nature parks and eco-corridors. Collaborative science and extensive research determined the ecological connectivity and complementarity between sites and the decision to safeguard these buffer zones and core wetland habitats around SBWR was made.

Fun Fact: Migratory season is from September to March. Crocs are easier to see when they get exposed during low-tide!

Pulau Ubin

Chek Jawa Wetlands, located on the eastern coast of Pulau Ubin has one of Singapore’s richest ecosystems where major habitats, with an abundance of biodiversity, interconnect. A unique sanctuary left in its rustic charm, Pulau Ubin hosts the largest mangrove areas in Singapore and almost all mangrove plant species known to Singapore can be found here. Citizen science works closely with researchers on a project called R.U.M. (Restore Ubin Mangroves Initiative) ecological mangrove restoration is used as a nature-based solution to build resilience for Singapore’s coastlines.7

Fun Fact: Speeding boats travelling along our coastlines erode our beaches daily. Mangrove belts of sufficient width act as barriers that strengthen our coastal zones from bigger climate-related hazards like more intensive storms and sea-level rise.

Keppel Discovery Wetlands

Recreated within Singapore Botanic Gardens is the Keppel Discovery Wetlands. It is a restoration of the forest wetland ecosystem that once existed in the vicinity.

Rasau Walk, Jurong Lake Gardens

Walk along the edge of Jurong Lake at the red-coloured, 300-metre long Rasau Walk boardwalk. The meandering boardwalk at Jurong Lake Gardens passes by partially submerged plants, part of the freshwater swamp ecosystem. South of Rasau Walk are the Neram Streams, naturalised water channels that flow into Jurong Lake.

Tampines Eco Green

Tampines Eco Green’s ecosystems include secondary forests, freshwater wetland, vegetated swales and grasslands. Venture to one of the bird hideouts along the water bodies and see if you are able to spot some of the water fowl along the water’s edge.

Besides the locations above, other wetlands in Singapore can be found at Pasir Ris Park and at offshore islands such as Pulau Ubin and St John’s Island. There is also a Kingfisher Wetlands at Gardens by the Bay, located in the midst of the city.

We hope you enjoyed reading about wetlands (specially those in Singapore and can find the time to visit them), and about ESG investing.

This article was written in consultation with PCM ESG.



These commentaries are intended for general circulation. It does not have regard to the specific investment objectives, financial situation and particular needs of any person who may receive this document. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. Investors may wish to seek advice from a financial adviser before investing. In the event that investors choose not to seek advice from a financial adviser, they should consider whether the investment is suitable for them.

The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries.

Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned.

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  


Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com