Sustainable investing has become a pivotal factor in capital allocation and understanding risk. Across the globe, climate risk, decarbonization and the race to net zero have accelerated the demand for sustainable investment products and solutions. Regulators are driving this market by implementing policies on mandatory disclosures, fund labelling and green taxonomies. Sustainable investing is no longer a trend and is now emerging as the new market standard.
The sustainable investment market in Asia which was rapidly escalating from near non-existence a decade ago, is expected to drive the next stage of regional market growth. Asia is fast catching up with Europe and the US as Asian investors continue to incorporate environmental, social and governance (ESG) factors into their investment decisions. While Asia is well-positioned to capitalize on this development, the region’s diverse markets, with different levels of ESG maturity, will remain a challenge to investors.
As sustainable products continue to demonstrate the ability for ESG factors to translate into better returns, investors are steadily increasing allocation to this asset class. Active funds have dominated this space, with equities taking the lead, but bonds and passive strategies, such as exchange traded funds, are also gaining ground.
The Asset Events+, in association with FTSE Russell, is pleased to be hosting an in-depth discussion to examine how investors are recalibrating their sustainable investing strategies amidst these developments.