Hurdles such as foreign exchange limitations still exist, but the new rules could help private equity fund managers and investors with ESG integration.
South Korea's National Pension Service and Singapore's GIC have signed up to the Asia Investor Group on Climate Change as momentum builds on sustainability issues.
ESG policy is ramping up at a government and investor level, as investors come under scrutiny for their behaviour and responses to the pandemic.
Investors in Australia increasingly want companies to formulate better sustainability strategies for the recovery phase of the Covid-19 crisis, but data limitations remain a concern.
As the global economy faces up to the effect of Covid-19, investors are focusing more on how portfolio companies are handling their response to the pandemic with their workforces.
The pandemic has revealed allocation weaknesses at some pension funds, and they should consider delegating investing and portfolio structuring decisions, argues Mercer.