Investors take greater, greener strides to sustainability

Environmental, Social, and Governance standards are being adopted as the world evolves

The Asia Pacific saw a faster-paced growth in sustainable investing in comparison to the United States, according to investment advisor Citywire. The region is bound to catch up to Europe, who is the leading player in Environmental, Social, and Governance (ESG) adoption. Roughly 70 percent of Asian investors have been involving climate change into their policies, boosting the amount by 13 percent compared to the previous year, which is a big jump compared to Europe’s seven percent jump.

Asia Pacific investors have been committing themselves to net zero, making and following policies that relate to decarbonisation and making alternatives to oil, gas, and carbon-intensive assets.

The Financial Times noted that, with the regional and global ESG regulations evolving, Asian funds have strengthened from the rise of all requirements across the market. ESG shifted from being an investment strategy to being an infrastructure capability. This made asset managers integrate it across whole businesses.

More: A developer’s guide to going green: Benefits, financing, certification

The current standards and regulations of ESG have been shifting, as well. Multiple asset managers have been keeping up and complying with the European Union’s Sustainable Finance Disclosure Regulation’s level two standards.

Both investors and asset managers work hard on being up to par with ESG standards since greener trade and investment are both key components in taking action against climate change in the Asia Pacific. The Asian Development Bank reported that Asia has seen increases in carbon dioxide emissions as economies grew in the past decades.

Asia is on the receiving end of 40 percent of the world’s disasters, making it more crucial for the region to take climate action. They wouldd need to take measures like promoting trade in environmental goods and services, nurturing green businesses, developing carbon pricing mechanisms, and strengthening regional cooperation through trade and investment agreements.

The Property Report editors wrote this article. For more information, email: [email protected].