Asian Investors’ Recognition of Climate Risks, Opportunities Rises 

New research from the Asia Investor Group on Climate Change (AIGCC) has shown Asian investors hold a “high recognition” of climate risks and opportunities. The AIGCC’s data analysed the climate practices of 183 Asia-headquartered institutional investors with US$33 trillion in AUM across 15 Asian countries including China, Hong Kong, Japan, and Singapore. According to the research, 81% of AUM have publicly recognised climate as a source of material risks and opportunities, 63% have set a climate policy, and 38% of AUM have set a target to reach net zero. Despite this recognition of high climate risks, AIGCC said there are “significant barriers” to setting short- or medium-term climate targets, as well as re-aligning capital flows at the rate needed to protect the region from the related economic and physical damages. Rebecca Mikula-Wright, CEO at AIGCC, said: “Asia’s major investors have undeniably recognised that climate is going to move markets and reshape the region’s economic outlook, but policy barriers prevent them from actually moving the capital to mitigate climate risks in Asia. Investors are keen to work alongside policymakers and business to chart our common path to net zero, protecting local economies, communities and environments.” The analysis is an extract from the AIGCC’s flagship research project ‘The State of Net Zero Investment in Asia’, which is set to be released in Q1 2024.  

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