Future of socially responsible investing in SE Asia

Published onNovember 13, 2020

Before Covid-19, the world already faced an annual financing gap of around US$2.5 trillion required to attain the Sustainable Development Goals (SDGs) by 2030 – the plan endorsed by world leaders to bring prosperity to all peoples and protect the planet. Governments alone will not be able to meet this target. Hence the importance of socially responsible “environmental, social, governance” (ESG) investing. Of the estimated value of $75 trillion of assets under professional management, more than half is believed to be associated with ESG metrics. In Europe, assets in sustainable investment products are forecast to grow from 15% to 57% of their overall fund size by 2025. With a young population, burgeoning middle class, and growing economic clout, Southeast Asia can and must set a similarly high bar to attract, retain and deploy ESG investments. In the first two quarters of 2020, Asia (including Australia) accounted for only about 11% of global inflows and 3% of sustainable fund assets globally. It’s progress, but we are not there yet.

Source: https://asiatimes.com/2020/11/future-of-socially-responsible-investing-in-se-asia/