A rising tide

Exploring how many APAC-based asset owners are approaching sustainable investing.

We surveyed more than 100 senior investment decision makers across APAC to understand their approach to climate, nature and biodiversity investing. Here’s what the data tells us.

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Many asset owners surveyed across APAC are focused on climate, nature and biodiversity risks and opportunities

1 of 9 Climate investment is now a key consideration

66% of respondents

are incorporating climate objectives into 20% or more of their current AUM
2 of 9 Risk and regulations are driving climate investment

50% of respondents

rank evolving regulatory requirements in their top three climate investment drivers

50% of respondents

list long-term investment risk within their top three drivers
3 of 9
A considerable portion of APAC asset owners surveyed are prioritizing climate investments in three focus areas:
- 48% of respondents renewable energy generation
- 44% of respondents energy efficiency
- 42% of respondents sustainable transportation
4 of 9 Compared with climate, nature and biodiversity investment is niche

58% of respondents

apply biodiversity objectives to 1–5% of their AUM
5 of 9 Risk and opportunity are jointly encouraging interest in nature and biodiversity

48% of respondents

list opportunities for growth in their top three drivers

48% of respondents

rank long-term investment risk in their top three drivers
6 of 9
Popular investment themes may reflect regional pain points for nature and biodiversity investors in our survey
- 43% of respondents are investing in sustainable agriculture and food systems
- 42% of respondents are investing in pollution and waste management
7 of 9 Asset owners are focused on managing the risks of investing in these areas

42% of climate respondents

45% of biodiversity respondents

say that concerns about returns volatility are a top three challenge
8 of 9
Fiduciary responsibilities are ensuring asset owners consider financial risks in investment decisions
- 50% of respondents say they must integrate climate-related risks and opportunities into their thinking
- 54% of respondents say they're required to approach nature and biodiversity as a long-term value driver
9 of 9
The majority of asset owners expect climate, nature and biodiversity investment to gain momentum in the next two years
- 56% of respondents expect greater nature and biodiversity-focused activity
- 66% of respondents expect to ramp up climate-related activity

“A few years ago, the market was mostly focused on carbon pricing and transition risk. But we’re now investing a lot more time in developing tools that can help us measure and address physical risk, to give us a more balanced view of our portfolio’s exposure to climate challenges and opportunities.”

Emily Chew, Head of Sustainability - GIC

“Sustainability is no longer a separate consideration to financial returns. It’s now completely embedded in the way we operate, from the way we do research to how we engage with investee companies and third-party managers.”

Mark Konyn, Group CIO - AIA Group

Latest insights

Our latest thought leadership explores some of the key trends from the survey and our latest thinking on nature and biodiversity-related investing.

From risk to resilience: Sustainable investing trends among APAC insurers

APAC-based insurance firms in our survey are helping drive sustainable investing forward as the sector evolves.

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Helping set the pace: Sustainable investing trends among Singapore asset owners

Singapore-based asset owners in our survey are some of the regional leaders when integrating climate, nature and biodiversity objectives.

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Nature as an asset: the relevance of biodiversity for investors

Explore the magnitude and sources of nature-related risks, and the reasons for greater investor awareness.

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About the survey

In August and September 2025, State Street Investment Management in partnership with FT Longitude, surveyed over 100 senior investment decision-makers from asset owners in Asia-Pacific (including pension funds, central banks, insurance firms, endowments and sovereign wealth funds). The respondents were based in Australia, China, Hong Kong, Japan, Malaysia, Singapore, South Korea, Taiwan, and Thailand. The survey explored how these investors are approaching the challenges and opportunities of integrating climate, nature/biodiversity, and impact-related investment objectives into their investment portfolios.

Disclosure

For investment professional use only.

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