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Asian fund managers see opportunity in ESG improvement

Most Asian fund general partners (GPs) are inclined to invest in companies with subpar ESG credentials, believing they can enhance value through ESG improvements, according to the Asia Funds ESG Report by Morrison & Foerster and the Asian Venture Capital Journal (AVCJ). The report surveyed 100 Asia-headquartered fund GPs that manage assets over USD1bn each. It revealed that only 23% of GPs have rejected investments due to ESG concerns, while a significant 91% expressed confidence in their ability to improve ESG standings in potential investment targets. Despite an overall optimistic outlook, some GPs acknowledge challenges in transforming entrenched behaviours in businesses. The report also highlighted a slight decline in comprehensive ESG due diligence, down to 84% from 92% in the previous year.


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