Asian institutional investors are making “meaningful progress” in climate-aligned investment practices, according to new analysis from the Asia Investor Group on Climate Change (AIGCC). Despite perceptions of a global pullback in climate ambition, the data reveals a marked year-on-year increase in formal climate risk recognition – up to 63% – and a jump in climate solution investment targets, which now stand at 44%. Physical climate risk disclosure also saw a notable rise to 33%.
The study – which analysed data from more than one hundred asset owners – also found a six-percentage point increase in net zero commitments (to 40%) and a five-percentage point rise in firms with a deforestation policy.
To sustain this momentum, the AIGCC has launched the Asia 2030 Climate Playbook, a strategic guide designed to help pension funds, sovereign wealth funds, and life insurers navigate the transition to net zero. The playbook provides actionable frameworks, including “strategic archetypes” and real-world case studies, ensuring that climate strategies are rooted in pragmatic financial performance.
David Chua, Chief Investment Officer at Singapore-based Income Insurance, described the guide as a “significant milestone” that “consolidates diverse asset owner perspectives” and supports investors in scaling climate transition pledges.
Dato’ Rick Ramli, Group CEO of Malaysia’s Permodalan Nasional Berhad (PNB), emphasised the necessity of a “whole-of-portfolio approach” to integrating climate considerations. Eddy Porwanto, Acting CEO of the Indonesia Investment Authority (INA), added that the playbook’s recognition of varied “investment mandates, risk appetites, and regulatory environments” is essential for developing “practical approaches to climate and sustainable investing” across the diverse Asian landscape.
The AIGCC Asset Owners Program has convened over 50 asset owners representing US$ 13 trillion in AUM since its launch in April 2024.
