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Fullerton Fund Mgmt, UNDP working on sustainable management framework

This aims to guide private equity investors in integrating sustainability into their strategies.

Fullerton Fund Management and the United Nations Development Programme are working together for the development of a Sustainability Management Framework to guide private equity climate investing in Asia.

The framework will provide private equity investors a roadmap for the integration of sustainability considerations and sustainable development goals (SDGs) into their strategy, management, transparency, and governance practices, to achieve their decarbonisation goals, according to Fullerton.

“Through the framework, climate investors can conduct a critical evaluation of the various possible investment practices and decide on the unique set of practices which aligns best to their investment mandates and stakeholders' requirements,” the announcement read. 

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The addressable market size for climate investments in Asian businesses is expected to reach $5.43t (US$4t) by 2030. Governments have also committed to decarbonise their economies.

Around $72.69t (US$53.5t) worth of investments until 2060 is needed to achieve net-zero targets.

Whilst private equity investors may have a great influence on portfolio companies over climate and sustainability issues, there are problems in disclosure standards and corporate disclosures in Asia, Fullerton said. 

“This poses challenges for climate investors who are looking to assess the material environmental issues, and their implications, for their investments,” it added.

Huck Khim Tan, deputy chief investment officer and head of Alternatives at Fullerton Fund Management, said they hope to “ share this framework and insights from real-world case studies with our peers, to enable them to evaluate the relevant sustainability aspects required to optimise decarbonisation in the region.”

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