Efforts to make Asia’s finance greener have marked a transformative effect on the relationship between companies and investors. Conversations about sustainability that were absent a decade ago are now happening and have been central to helping the region come so far in such a short time: Asia’s banks and corporates have gone from 1% of green issuance in 2013 to 45% in 2019.
This report explores environmental, social, and governance (ESG) investing in fixed-income markets. It also examines the evolution of “green” debt from an issuer, investor, and regulatory perspective. Central to the study is a question about market progress and if it has been enough, in Paris Agreement terms. The research is based on indepth interviews conducted with 14 executives at asset-owner firms, regulatory bodies and finance professionals at academic or advisory organisations alongside extensive desk research and historical analysis. While the study concentrates on stakeholders and market players in Asia, the conclusions and implications are globally minded.