Asset Management One (AMO) is continuing to enhance and expand its ESG product and engagement offerings for asset owners – a key contributor to the firm’s business that helped it to win AsianInvestor’s ‘Fund House of the Year - Japan’ for 2022.
The Singapore-based insurer has committed to having its entire portfolio reviewed and measured daily against key ESG objectives.
In selecting the climate technology companies to invest in, the state investment firm looks at factors such as risks, deployment costs, market acceptance, and the company’s R&D capabilities among others.
The sovereign investor believes engagement is a better way of helping portfolio companies focus on how to get to a decarbonised future.
Institutional investors that make private equity deals should also consider change-based targets to complement levels-based targets because of shorter-term horizons, according to a WEF whitepaper.
Contrasting approaches of divestment versus engagement between the different funds have attracted both praise and criticism.
The massive political and economic upheaval being caused by the Russian aggression may disrupt investor activity in the short term, but industry players say climate change will not fall off the agenda.
While some asset owners in the region are moving ahead strongly with their coal divestment strategies, others are seriously lagging.
The Australian asset owner is bullish on the long-term appreciation of carbon credits for sustainable infrastructure investment.
The A$43 billion superannuation, one of Australia’s oldest, aims to reduce direct emissions in its portfolio by 45% in the next nine years.
Australian super funds point to scarcity of short-term emissions reduction targets.
Besides carbon transition, renewable energy, energy efficiency technologies, and carbon credit markets are other key allocations for these asset owners.