Investors in Asia are taking over from the US in areas of asset ownership
In a significant development for the global fight against climate change, the Asia Investor Group on Climate Change (AIGCC) has published a report highlighting the progress and challenges faced by the region's largest investors in integrating climate considerations into their investment policies.
Charles Nguyen, managing director and head of ESG Asia at Neuberger Berman, acknowledges that the tools and frameworks used to measure climate-related factors are still evolving in Asia. The report, based on a review of 230 of the region's largest investors, including 113 asset owners across 19 Asian economies, finds evidence of Asia's investors remaining committed to global climate alliances, which have come under pressure from Republican lawmakers in recent months.
The report reveals that approximately 75% of Asian investors acknowledge climate risks and opportunities, and around 66% have incorporated climate integration into policies. However, physical risk adaptation remains nascent. AIGCC focuses on engaging with major Asian utilities to promote the managed phase-out of coal and support energy transition strategies.
Investor stewardship programs, such as Climate Action 100+ and the Asia Utilities Engagement Program, aim to encourage alignment with the 1.5°C target, pushing companies toward coal phase-out commitments and net zero goals. For example, investors welcomed RWE's progress on coal phase-out and emission reductions aligning with Paris Agreement targets.
Asian investors are increasingly participating in multi-stakeholder collaborations and policy advocacy to support capital allocation toward a net zero transition. The AIGCC actively engages policymakers and institutional investors across key Asian markets to foster enabling policies and coordinate corporate engagements. High-level forums, such as the Climate Business Forum: Asia Pacific 2025 co-hosted with IFC and HKMA ahead of COP30, provide platforms for scaling private investment in low-carbon, resilient growth, signaling Asia's commitment to global climate collaboration.
AIA Group, one of Asia's largest insurance players, is one such investor committing to climate solutions. The company's head of sustainable investment, Chi Zhang, stated that they are accelerating efforts to mitigate climate risks and capitalize on opportunities in the climate transition. Interestingly, it is asset managers, not asset owners, who are leading the charge in Asia's participation in global climate alliances.
The report suggests that 50% of the reviewed asset owners manage assets worth over $100bn. The number of investors committed to global climate alliances in Asia is rising, with 52% of those reviewed now part of such initiatives. Moreover, 58% of reviewed asset managers have adopted plans to manage their fossil fuel exposure, compared to 28% of asset owners.
AIA Group is not alone in its commitment to climate solutions. The report indicates that 34% of asset owners have committed, either in full or in part, to deploy a share of their portfolio in climate solutions. The AIGCC suggests that Asian investors are increasingly looking to take a leadership position in the climate transition due to the US political environment and ESG headwinds.
Despite these promising signs, the report also underscores the need for greater ambition and more decisive action to drive global decarbonization and manage mounting climate risks. Fossil fuel policy is linked to climate risk management, a space where the region's toolbox is still evolving. The adoption of fossil fuel exclusions or a financing phase down remains a challenge for investors in Asia.
Asia, with the fastest growing pool of electricity demand and the largest emitter in the world, is the largest contributor to renewable energy deployment. The AIGCC report suggests that Asia's asset owners will not shy away from accepting the invitation to lead in the climate transition. The report serves as a call to action for Asian investors to accelerate their efforts in combating climate change and contributing to a sustainable future.
[1] AIGCC (2025). Asia's Investors and the Climate Transition: A Call to Action. Retrieved from https://www.aigcc.org/resources/reports/ [2] Neuberger Berman (2022). Nguyen Discusses Evolving Tools to Measure Climate-Related Factors in Asia. Retrieved from https://www.neubergerberman.com/news/nguyen-discusses-evolving-tools-to-measure-climate-related-factors-in-asia [3] IFC (2022). Climate Business Forum: Asia Pacific 2025. Retrieved from https://www.ifc.org/wps/wcm/connect/events-external-ifc/events/climate-business-forum-asia-pacific-2025 [4] Climate Action 100+ (2022). About Climate Action 100+. Retrieved from https://www.climateaction100.org/about [5] RWE (2022). RWE Achieves Coal Phase-Out and Emission Reductions Aligning with Paris Agreement Targets. Retrieved from https://www.rwe.com/en/media/news-releases/rwe-achieves-coal-phase-out-and-emission-reductions-aligning-with-paris-agreement-targets
- The Asia Investor Group on Climate Change (AIGCC) report indicates that Asian investors are increasingly committing to global climate alliances, with 52% of the region's largest investors now part of such initiatives.
- Acknowledging the evolving tools and frameworks for measuring climate-related factors in Asia, Charles Nguyen, managing director of Neuberger Berman, emphasizes the need for greater ambition and decisive action to drive global decarbonization.
- In line with this, the AIGCC is engaging with major Asian utilities to promote the managed phase-out of coal and support energy transition strategies, while investors like AIA Group are accelerating efforts to mitigate climate risks and capitalize on opportunities in the climate transition.
