ESG investing is on the rise
While Asia once lagged Europe in many environmental, social and governance (ESG) issues, an increasing number of governments and corporations in Asia are paying close attention to ESG factors. We expect this shift will gain momentum as the region’s markets continue to develop.
- In Japan, Prime Minister Shinzo Abe’s government and major pension funds are pressing for improved diversity, shareholder representation and management accountability.
- China is changing its “growth at any cost” model of the last 25 years; President Xi Jinping knows the importance of delivering better living standards and a cleaner environment.
- South Korea is also making progress on its ESG journey, making efforts to address all-too-common management scandals and bribery issues.
- India still relies on domestic coal but is keenly aware of the unpopular costs of growth at the expense of the environment, particularly given the country’s large farming population.