The Value of Investing in Values – The ESG opportunity for APAC asset managers is a joint publication by KPMG and Quinlan & Associates that looks at the unique challenges and opportunities that Asia Pacific-based asset managers face when integrating environmental, social and governance (ESG) into their organisations’ strategies and operations.

APAC lags significantly behind global standards when it comes to implementing sustainable practices across key ESG pillars. However, a growing number of regulators in the region are localising ESG-related requirements in their home markets. In addition, end-investors including pension funds, sovereign wealth funds and high-net-worth individuals, are increasingly taking sustainable practices into account.

The report finds that non-adherence to rapidly-evolving ESG standards will leave regional asset managers open to sizeable reputational risks and create capital raising challenges. While most APAC asset managers can be considered “Starters” or “Fast Followers” in the ESG space, there is considerable potential for firms to become true “Market Leaders”, attracting considerable ESG-related capital inflows.

The publication presents a wide range of strategic and operational considerations for APAC asset managers who are embarking on their ESG transformation journeys, including in areas such as stakeholder analysis, product development, investment process, data and technology, governance, talent and key measurements. The report’s overarching theme is that ESG is not “something” you do – rather, it is “everything” you do. Asset managers should aim to integrate ESG across their entire organisation and corporate culture. There is value in investing in values.

Chee Hoong Tong
Partner, Asset Management
Hong Kong SAR
KPMG China

Wei Lin
Partner, Head of Environmental, Social and Governance
KPMG China

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