Home Insights Responsible i...

Responsible investing in Asia is on the rise

Responsible investment practices in Asia have generally been viewed as behind those of their global counterparts. This perception is typically linked to historical obstacles, including a restricted comprehension of ESG (Environmental, Social, and Governance) concerns, challenges in incorporating them into investment strategies, and the need for standardised and easily comparable ESG data.

However, things are changing, and Columbia Threadneedle Investments observes a rising appetite for responsible investing in Asia.

“Improvements in the quantity and quality of corporate ESG disclosures – driven by investor engagement, stock exchanges, regulation and an emerging consensus on a global sustainability reporting standard – have helped to support the integration of ESG issues into the investment process,” says Tom Barron, Senior Associate, Responsible Investment at Columbia Threadneedle.

Asian policymakers support the change

Barron further points out that Asia, after Europe, has experienced significant growth in sustainable finance policy instruments, with Asian regulators employing various measures to promote sustainable finance. This evolution has transitioned from encouraging voluntary corporate ESG disclosures to enforcing their mandatory adoption.

As assets under management dedicated to responsible investment increase, regulators have introduced regulations for ESG fund disclosures and labels to address greenwashing. Additionally, Columbia Threadneedle highlights that Asian policymakers have concentrated on developing sustainable and green finance taxonomies and implementing and updating stewardship codes.

“The market share of ESG funds in Asia has doubled since the end of 2020, with Asian-focused ESG fund inflows growing faster than any other region,” says Barron.

Asian Market Insights

Exclusive news, analyses and opinion on Asian economies and financial markets

Asian Market Insights

Exklusive News, Analysen und Meinungen zu den asiatischen Finanzmärkten

More News

Vietnam’s economic boom: what it means for investors in 2025

0
Vietnam's economic boom is capturing the attention of investors as the nation sets ambitious growth targets for 2025. The Na ...

Japan equities outlook Q1/2025

0
Japan's economy demonstrated resilience in the fourth quarter of 2024, achieving an annualised GDP growth rate of 2.8%, surp ...

Unmasking myths in Australia’s credit market

0
Australia’s credit market is often misunderstood, with persistent myths about its size, liquidity, and risk. Contrary to b ...

The drivers behind India’s private equity boom

0
India’s private equity market has experienced significant growth in recent years. The average annual investment volume amo ...