Sustainability is a key topic for all asset managers, requiring them to increase resources and integration in support of their strategic objectives, according to guidance from the Asia Securities Industry and Financial Markets Association (ASIFMA). The trade association said asset managers in the region needed to increase their level of sustainability expertise, accountability and decision-making ability, “irrespective” of their sustainability or ESG ambition. “Most importantly, an organisation needs clarity about its sustainability positioning so that its sustainability objectives, efforts, and resources are aligned,” it said. ASIFMA added regulatory developments, including the impending adoption of International Sustainability Standards Board disclosure standards, were among the key drivers for asset managers to assess their sustainability capabilities. “These regulations have wide-reaching implications across a growing range of functions, including investments, products, legal and compliance, distribution, and communications,” said CEO Peter Stein. The report offers guidance on building sustainability skillsets across asset management firms and integrating sustainability across strategy, governance and risk management, also addressing the need to integrate ESG data to facilitate decision making and reporting. “We seek to counter the challenges of an evolving topic with its own language and terminology, amid an environment of regulatory and reputational risks,” said ASIFMA. The report also includes examples from members of good practice to help asset managers in future-proofing how they integrate sustainability to meet sustainability-related objectives and expectations. ASIFMA said the report was aimed primarily at asset managers but was equally relevant to asset owners.
