Asia’s asset owners ‘leading by example’ on climate solutions investing
New AIGCC data shows energy storage tops Asia’s climate investment priorities
Asian asset owners are picking up the pace on climate investment plans. New research from the Asia Investor Group on Climate Change (AIGCC) shows that quantitative targets for climate solutions investments are becoming increasingly common, as are capital deployments to back them up.
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The research covers 240 investors with $123tn in management between them. 84% of those surveyed are headquartered in the region. The latest AIGCC annual review of climate transition investment overview shows climate solutions targets are on the rise. Just 9% of asset owners had climate solutions investment targets three years ago. That number now sits at 35%.
Climate capital
“This rise signals a shift from exploratory activity to more intentional capital allocation into climate-related investments”, the report highlights.
Within the climate investment universe, energy storage is high up on the agenda. 82% of respondents identified this as an investment priority, up from 65% last year. Renewable energy generation was a close second, attracting 71% of interest.
AIGCC chief executive Rebecca Mikula-Wright says the findings seem even more significant viewed in context.
“In spite of ongoing geopolitical risks and conflicts that have worsened this year, investors are increasing their allocations to renewables and other low-carbon solutions”, she commented.
In addition to investments, asset owners and managers both seem willing to engage with the policy environment surrounding their climate investment plans. Disclosure of climate policy advocacy by AIGCC members has tripled over two years.
Insurance investor AIA Singapore is one of the asset owners eyeing an increase in policy engagement. “As many investors now are moving towards implementation, we look forward to having closer collaboration with policymakers to accelerate a low-carbon economy”, said Liu Chunyen, AIA’s chief investment officer.
Chunyen also notes that climate transition investing in Asia is quickly becoming a ‘all hands on deck” proposition – particularly as plans move into implementation.
“Asset owners are leading by example and not only stepping up climate-related investments but also sending clear market signals about the transition trajectory they are on”, Mikula-Wright adds.
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