Saudi Arabia wants to merge its General Organisation of Social Insurance (Gosi) with the Public Pension Agency (PPA). The new super fund will have to adhere to higher standards.
Asia Pacific institutions are among the top-rated funds in the latest survey of governance and sustainability practices. Other regional players are yet to come up to the mark.
Investors face unforeseen risks in their adoption of ESG strategies if they are not engaging actively - and observers say this remains still the case in many instances.
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.