Recent extreme weather events have further raised global awareness of climate and environmental issues, concerns that will top the agenda at COP27 and other upcoming climate summits.
However, only 59% of the respondents to our 2022 Asia Funds ESG survey consider climate change in their ESG due diligence; this is surprisingly low and well below other ESG due diligence considerations. Additionally, most of the environmental policies described by respondents are relatively basic, with an emphasis on quick wins around reducing energy consumption and increasing recycling. While these initiatives are certainly worthwhile, the lack of focus on environmental factors seems short-sighted, particularly as companies come under more pressure from customers, investors, and other stakeholders to prioritize climate change and negative externalities.
In this podcast, we discuss how funds in Asia can better incorporate environmental and climate considerations into every stage of their fund management and investment lifecycle.