Asian asset owners seen to focus on climate transition in ESG
Asian asset owners are expected to maintain allocations to ESG investments this year, with a focus on sustainable financing and climate transition. As institutional investors in the region gain a more sophisticated understanding of ESG, responsible investment practices in Asia are gradually aligning with developed markets while adopting localized strategies that emphasize climate adaptation and nature-related risks. Asset owners are increasingly demanding clearer performance metrics and risk disclosures from asset managers, making fiduciary duties and investment risks central to ESG evaluation. With climate transition frameworks and ESG-themed funds becoming more accessible, ESG investing is evolving from a principle-driven approach to a more structured and measurable practice.
