Singapore, Indonesia Lead Growth in Sustainable Investing in Asia
Friday, April 3, 2015
While Asia still lags Europe and the United States in sustainable investing, the market for funds employing such strategies is healthy and expanding rapidly in the region, with Singapore and Indonesia leading the growth.
Asia’s sustainable investment assets – defined as funds employing sustainable investing strategies – stood at US$53 billion at the beginning of 2014, an increase of 32 percent from the US$40 billion at the start of 2012. That’s 0.2 percent of the global total.
These are the findings of The Global Sustainable Investment Review 2014, a report released on 24 Feb by the Global Sustainable Investment Alliance (GSIA), a group of sustainable investment organizations that include the European Sustainable Investment Forum (Eurosif) and Association for Sustainable & Responsible Investment in Asia (ASrIA).
Sustainable investment is an investment approach that considers environmental, social and governance (ESG) factors such as climate change and human rights in portfolio selection and management.
Globally, the sustainable investment market stood at US$21.4 trillion at the start of 2014, up nearly 61 percent from US$13.3 trillion at the start of 2012. The fastest growing region was the United States, followed by Canada and Europe. Together, they account for 99 percent of global sustainable investing assets.
Malaysia, Hong Kong and South Korea are the largest markets by asset size among the 13 countries in Asia where data was collected: Bangladesh, China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, Pakistan, Singapore, Taiwan, Thailand and Vietnam.