Although allocations to emerging markets can carry added risk, asset owners such as GIC and INA are adding to their already substantial investments in infrastructure funding.
Faced with a legal obligation to disclose portfolio carbon emissions, Australasian state funds and Asian institutions voice doubts over data accuracy yet underscore the importance of Scope 3 reporting.
Machine learning, among other AI applications, is expected to be the key to improving the carbon reporting capability of companies and their investors.
Low carbon prices have failed to provide robust incentives for companies to decarbonise, so institutional investors need to initiate dialogues with companies on how they can use the evolving carbon market in Asia.
Investors need to collaborate more and put pressure on policymakers to make markets more sustainable, said speakers at a recent Asia Investor Group on Climate Change net zero webinar.
As pressure from Australian institutional investors builds on companies to improve their diversity, equity, and inclusion, there are signs that progress is also being made across Asia.
Global politics will influence investor behaviour to a greater extent this year, for various reasons — not least of which being the sheer number of countries going to the polls.