(Bloomberg) -- Deutsche Bank AG warned of a possible bubble brewing in carbon markets while the Bank of Singapore Ltd. said more attention should be paid to governance, as bankers debated ESG investing at the Bloomberg Asia Wealth Summit in Singapore.

When asked about potential bubbles in the environmental, social and governance space, Kalpana Seethepalli, director of Asia-Pacific ESG at Deutsche Bank said carbon markets stand out, even as the overall risk of asset bubbles should decline as more companies become compliant.

“The next ESG bubble may come from carbon markets, which are very, very important,” she said at the conference Thursday. “There’ll be a lot you’ll hear about it in the race to net zero.”

Bank of Singapore’s Jean Chia meanwhile cautioned against underestimating corporate governance concerns at companies.

“As Asian investors, we need to really pay attention to this risk, because we’ve seen for example, how this can really impact our return,” Chia said.

The managing director at the private banking unit of Oversea-Chinese Banking Corp. sees opportunities in the ESG space for decarbonization technologies, even if some of the promising bets are in early-stage private companies.

“Some of these opportunities may be hard to access,” she said. “But the issue here at hand is the urgency has become greater.”

©2022 Bloomberg L.P.