As sustainability rises as a priority among asset owners, they will need to grapple with how much they engage with poor ESG performers, and whether they should divest.
The increasing urgency of climate change will cause more scrutiny on asset owners and fund managers, while also leading to better and more universal standards for investment.
The rise of environmental, social and governance issues to become a core aspect of the investment process has led to asset owners more closely examining fund manager claims.
AIA's Mark Konyn and others said asset owners have been slow to embrace environmental, social and governance measures, but the Covid-19 crisis could change that.
Giant insurer AIA is inspiring other Hong Kong asset owners to bring their investment practices in line with the global trend.
Consistent with its pioneering role on governance issues, the fund is an early mover in offering information on its voting history, which is in line with best investment practice globally.