Setareh Heshmat on Why ESG Is More Than a Buzzword—It’s the Future of Smart Investing

In a world grappling with climate change, social inequality, and shifting corporate responsibilities, ESG (Environmental, Social, and Governance) is no longer just a checkbox on investor reports — it’s a transformative lens for the future of finance. And few understand that better than Setareh Heshmat, Director of ESG Investments at one of Singapore’s leading venture capital firms.

With a career spanning impact investing, fintech innovation, and sustainable finance strategy, Setareh brings not only data-driven analysis but also deeply held convictions about what capital should do in the world.

“To me, ESG isn’t about compromise,” she says. “It’s about alignment. If you align profit with purpose, you don’t just do good — you outperform.”

The Rise of ESG: Trend or Transformation?

Skeptics have often dismissed ESG as a trend, but the numbers paint a different picture. According to Bloomberg Intelligence, ESG assets are projected to hit $50 trillion by 2025, representing more than a third of global AUM.

For Setareh, however, it’s not about the hype. It’s about substance.

“True ESG isn’t just about ticking boxes — it’s about internalizing values. When a founder can tell me how their supply chain aligns with fair labor practices without needing a consultant to explain it, I know they’re building something lasting.”

Startups, Sustainability, and Southeast Asia

Operating in Southeast Asia — a region both rich in biodiversity and vulnerable to climate risk — Setareh sees ESG as an urgent necessity.

“SEA is at a tipping point. We’re seeing bold ideas in agri-tech, clean energy, and circular economies. But funding them responsibly is key. That’s where ESG-led investing becomes both strategic and moral.”

Through her firm, she’s helped scale dozens of startups, from solar energy microgrids in Indonesia to ethical fashion brands rooted in indigenous craftsmanship. Each venture balances innovation with accountability.

Data Meets Intuition: Setareh’s Investment Lens

While she’s known for her analytical edge — thanks to her CFA and advanced data analytics training — Setareh also leads with intuition.

“I run the numbers, always. But I also listen for what isn’t said in the pitch. If a founder talks endlessly about revenue but dodges a question on carbon footprint, that’s a red flag. ESG is about transparency.”

Her due diligence process goes beyond traditional KPIs. It includes climate risk assessments, DEI audits, and sometimes, late-night conversations with employees off the record.

The Road Ahead: Impact, Integrity, and Innovation

Setareh’s long-term vision? To launch her own sustainable investment fund dedicated to female-led ventures in Southeast Asia.

“Women entrepreneurs are building brilliant, sustainable businesses — but they’re often overlooked by traditional capital. I want to change that.”

As the ESG space matures, she believes the next frontier is accountability tech — blockchain-backed ESG verification systems that bring radical transparency to impact claims.

“Tech will evolve, policies will shift, but the north star should stay the same: Are we building a world we’re proud of? That’s the question I ask before I sign any deal.”

Final Word

For Setareh Heshmat, ESG isn’t a niche—it’s the new normal. Her work proves that when capital flows with conscience, returns don’t just rise — they resonate.

Follow Setareh’s journey as she continues to redefine what smart investing looks like in an age where ethics and economics are inseparable.