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ESG investing
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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
Yujie Xue
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.
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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.

The BNP Paribas survey found that a growing number of investors were allocating a higher portion of their portfolios towards ESG oriented investments. Of the investors surveyed in all regions, 22 per cent currently integrate ESG into at least 75 per cent of their portfolios, compared to its survey in 2019, where zero respondents envisaged this to be the case by 2021.

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The survey also found that 66 per cent of investors were currently incorporating ESG into less than half of their portfolios. Asia-Pacific had the largest percentage of investors that had less than half of their assets incorporating ESG, accounting for 82 per cent of all investors surveyed in the region. This was largely driven by investors in China and Hong Kong, where 75 per cent of investors incorporated less than a quarter of their assets into ESG.

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