Dear customer, we are sorry but your browser doesn't support all necessary features for good site view. Please switch to one of the modern browsers (Chrome, Safari, Firefox).

ESG investment in Asia is still in its infancy

Home Credit

21/10/2022 | 1 minute to read

Copy link

Unlike the adoption of climate targets in business strategies, ESG investment in Asia is still in its infancy. Some of the main obstacles are the lack of a robust enough framework, a proper taxonomy or investment philosophy processes.

In Europe and the US, it took years before the infrastructure was ripe to take off. There is a lack of ESG specialization among Asian asset managers and even more so, among retail investors.

Like in the West, for Asian investors sustainable topics are important[1]:

  • 60% of retail investors in the APAC region recognize the importance of sustainable investing.
  • 54% investors would like to use their money to make a positive change in the world.
  • Mainland China and Singapore are the two markets where investors are most interested in realizing positive change through investing.
  • However, 36% feel there is a trade-off between investing sustainably and achieving a good return.
  • 49% feel sustainable investments and their providers lack regulatory oversight in relation to the promises they make.[2]
  • In terms of the asset size of ESG funds, Asia still lags far behind the West. The bulk of the global $2.5 trillion ESG funds’ assets is located in Europe (82%) and the US (12%). APAC makes up roughly 3.5%, which translates into 86 billion.
  • In the APAC Region, 70% of the ESG assets are located in Mainland China, followed by Japan (30%), Taiwan (8%) and South Korea (4.7%).[3]




Share on social networks

Share on social networks


Copy link