Australian and British pension funds want the UK's National Wealth Fund to focus on higher risk net-zero industries where it can play a valuable role bridging gaps in capital markets.
Richard Newell
Poor investor sentiment is reflected in a depressed sector, from low occupancy to falling profits. There's a strong sense that Hong Kong needs to reinvent itself before investors return.
Despite growing market interest, asset owners have minimal exposure to businesses and projects driving positive marine conservation impacts due to a lack of scalable opportunities.
The sustainable growth equity space has some of the most exciting investment opportunities, with unicorn companies keen to attract institutional capital.
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.
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This is the fund’s first direct investment in an Australian toll road, but indications are that it won’t be the last.
Challenged to improve their reporting on carbon footprint, asset owners are hamstrung by the significant limitations of available data.
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.
