An industry review by the Association for Sustainable and Responsible Investment in Asia (ASrIA) has found that over 130 investment managers currently adopt sustainable investment approaches in the region.
ASrIA’s Asia Sustainable Investment Review 2012 also showed that some $74 billion are invested sustainably across the continent, as investors seek to capitalise on emerging markets.
“Sustainable investing in Asia has become a significant force over the last five years, as global investors deploy a greater percentage of their assets to the region, at the same time as local managers are building expertise with these strategies”, said Alexandra Boakes Tracy, chairman of ASrIA.
“It is increasingly clear that Asia will play a key role in the future development of the sustainable investment industry.”
In October this year, responsible investment research firm EIRIS found that responsible investors around the world had increased the share of emerging markets in their portfolios by 30% since 2009.
It also found that a quarter of the 40 global responsible investment houses surveyed had amplified their exposure to emerging markets in the wake of the financial crisis – as investors attempted to seek stable and profitable funds.
BRIC countries – Brazil, Russia, India and China – are among the biggest markets for environmental, social and corporate governance (ESG), along with places like South Africa.
Five stock exchanges in June collectively pledged to promote sustainable investment in their markets, in what was yet another example of the sector’s increasing prominence in global finance.
The stock exchanges involved included the Johannesburg Stock Exchange, the Istanbul Stock Exchange and NASDAQ OMX.