ESG considerations to rise among mainland China, Hong Kong investors as awareness grows in Asia-Pacific, BNP Paribas survey shows

75 per cent of investors in China and Hong Kong are allocating less than a quarter of their assets with ESG considerations in mind

Change is happening swiftly, with ESG playing a rapidly increasing role in investment decisions in Asia-Pacific, BNP Paribas executive says

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ESG awareness is rising among both investors and policymakers in Asia-Pacific, the survey found. Photo: Shutterstock

Published: 6:46pm, 14 Sep 2021Updated: 10:05pm, 14 Sep 2021

Environmental, social and governance (ESG) considerations are expected to become increasingly important to institutional investors in the Asia-Pacific region, according to a survey conducted by French bank BNP Paribas.

The survey collected responses from 356 asset owners, official institutions and asset managers in Europe, North America and Asia-Pacific on their attitudes to ESG in April and May this year. The investors polled together represented more than €11 trillion (US$13 trillion) in assets under management.

“The industry has come some way since our first ESG survey in 2017. Asset owners and managers are now more likely to embed ESG within their organisations and strategic decision-making,” said Florence Fontan, head of company engagement at BNP Paribas Securities Services.

The survey’s findings were significant because it shows that Asia-Pacific was lagging behind other regions when it came to ESG commitments, with China and Hong Kong leading this trend. This was despite Chinese president Xi Jinping announcing in September last year that the country would aim to peak its carbon emissions by 2030 and achieve carbon neutrality, or net zero emissions, by 2060.