Only 12% of Asian investors set ESG investment targets

Despite high interest in ESG investing, only 12% of Asia’s institutional investors have committed to increasing investments in climate solutions, according to a survey by the Asia Investor Group on Climate Change (AIGCC). Furthermore, only 28% have policies on transition finance and fossil fuel phase-down, and a mere 12% have considered deforestation in their investments. Challenges such as varying reliance on fossil fuels and inadequate regional financing models hinder progress towards net-zero goals, particularly in emerging markets. The survey also identified a significant data deficiency, with 57% of respondents citing this as the main barrier to climate-aligned investments. Despite these obstacles, there is optimism for more formalised investment strategies in the coming year, as investors gradually act on the material risks posed by climate change.