BNP Paribas: Institutional ESG Advocacy to Drop in Asia
Institutional investors in the Asia Pacific region plan to lower their level of advocacy for sustainability, according to a BNP Paribas study, though commitments remain high.
Within APAC, institutional investors continue to express interest in sustainability, according to a BNP Paribas study, despite pullbacks elsewhere, such as in the US, with President Donald Trump signing an order to withdraw from the Paris Agreement earlier this year.
The study, entitled «Industry Survey: Institutional Investors Leading the Way», saw 90 percent of respondents in the region claim that their ESG and sustainability objectives remain the same. 85 percent said they currently integrate sustainability-related criteria into their investment decisions with 82 percent citing carbon reduction as a key element.
Despite the persistent commitments, the subject may not see as much visibility. 45 percent of respondents said that while targets are unchanged, they plan to «adopt a more reserved approach in communicating their process and achievements».
Global Findings
Globally, commitment levels are similar with 87 percent stating their ESG and sustainability objectives remain unchanged. The top three primary objectives in the next two years are increasing allocations to energy transition assets (49 percent), using active ownership to advance ESG goals (47 percent) and investing in low-carbon assets while divesting from carbon-intensive assets (46 percent).
The study was based on data collected between November 2024 and January 2025 from 140 asset owners, 140 asset managers and 140 private capital managers across EMEA (50 percent), APAC (26 percent) and the Americas (24 percent). In total, the respondents represent an estimated $33.8 trillion in assets under management.
