Sustainable Financing and Investing Survey – Asia

Issuers and investors in Asia show the strongest commitment to environmental and social issues of any region and the most optimism for the potential of sustainable infrastructure investment.

Overview

Executive Summary
  • Asia is the leader amongst all regions in its commitment to environmental and social concerns. 96 per cent of investors and 92 per cent of issuers regard these matters as very or somewhat important.
  • Issuers and investors in Asia are unmatched in their enthusiasm for the potential of sustainable infrastructure investment.
  • At 88 per cent, Asian issuers score the highest for disclosing their alignment with the Paris Agreement.
  • Across all regions surveyed, Asian issuers had the most favourable experience with green funding. More than 90 per cent said they were very or moderately satisfied with the experience of funding through green bonds.

 

Key Findings

 

The Asia Pacific region is in a unique position when it comes to sustainability. In much of the region, outside of mainland China, sustainable finance markets are in their infancy. These countries are experiencing rapid economic growth, which is likely to have adverse effects on climate change and they will have little desire to stem that growth. In some ways, these are issues that could hamper the growth of sustainability in the region – but in others, they are opportunities.

In mainland China, for example, the Government has recently announced plans to be carbon neutral by 2060 – a move that is likely to make clean energy cheaper and boost investment opportunities.

In our survey of 2,000 respondents, Asia showed it has the broadest commitment to environmental and social issues of any region — as many as 96 per cent of investors and 92 per cent of issuers regard them as very or somewhat important.

Crucially, their optimism about the potential of sustainable infrastructure investment is unmatched. Investors are ahead of global peers on all but one type, while Asian issuers top their peers in enthusiasm for smart cities and infrastructure to support water/waste water.

This signals a region that is ready to stay the course on economic progress but build in sustainability from the start. When creating the infrastructure that they need to support their growing affluence and populations, it seems that they are keen to do it sustainably. Read more

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