ESG investment in Asia is still in its infancy

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]

[1] https://www.eco-business.com/news/esg-investing-in-asia-from-niche-to-mainstream/

[2] https://www.theasset.com/article-esg/47405/asia-pacific-investors-see-value-in-sustainability

[3] https://www.morningstar.com/lp/global-esg-flows