Stronger government actions are needed to meet the Paris Agreement goal of limiting global temperature rise to 1.5 degrees, investors such as Hesta and CDPQ signed in a statement.
The investment industry lacks coherent sustainability standards, which makes applying them harder, said officials at asset owners and fund houses from Japan, Malaysia and Korea.
The two investors' new JV underlines Temasek's commitment to carbon neutrality, but other sovereign wealth funds are unlikely to follow with their own venture capital investments.
A growing number of investors in the region are using climate-aligned allocation strategies, but they could do more. Few set environmental standards in mandates, for instance.
Climate risk could lead real estate values to fall 1% per annum. Some of Australia's leading asset owners and several fund managers have developed measures to mitigate this risk.
Impact investing aims to identify businesses and organisations pursuing purpose-led activities serving the needs of the global economy and environment. A thematic approach to impact investing seeks to identify opportunities created by pressing issues that can be identified as megatrends – including climate change, access to water and pandemics.