Institutions such as the Asian Infrastructure Investment Bank – and recent studies – are showing why and how investors should analyse the ESG performance of bonds and issuers.
Investors are now being empowered to integrate ESG factors into their core investments in markets around the world by using the new S&P ESG Index Series.
Listed companies are responding to pressure for greater disclosure on issues such as carbon emissions, according to the Japanese pension fund and its carbon index provider
A mixture of carrot and stick factors look likely to encourage Asian insurers to increase their use of environmental, social and governance considerations when investing.
For now, it's mainly just the bigger players, including Japan Post Bank. In future, there could also be some potential to exploit ESG inconsistencies across the global corporate landscape.
Very few asset owners in Asia adopt environmental, social and governance principles in their fixed income portfolios. Credit rating agencies could play a key role in changing that.