ESG in South East Asia
Sustainable investment flows in Southeast Asia increased by 29% in 2021 to reach a record high of $30.5 billion, according to a report by the United Nations Conference on Trade and Development (UNCTAD). This represents a significant increase from the $23.5 billion recorded in 2020. The report also notes that sustainable investment in the region has been growing at an annual rate of 21% since 2016.
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Investing in Southeast Asia can be particularly effective due to the region's high economic growth potential, young and growing population, and increasing demand for sustainable infrastructure and technologies. The region's infrastructure investment needs are estimated to be $210 billion per year until 2030, creating opportunities for sustainable investment in renewable energy, transportation, and urban development. In addition, Southeast Asian countries are increasingly implementing policies to promote sustainable development, including the United Nations Sustainable Development Goals (SDGs), providing a favorable environment for ESG investing.
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Asian investors shift towards ESG
2020
Thailand issues first green bond
75%
of investors in Asia consider ESG factors
91%
of investors in Asia consider believe ESG-considerate companies are more successful
89%
of companies in SEA have ESG-policies in place
​Over the past few years, there has been a significant shift towards ESG investing in Southeast Asia, driven by increasing demand from investors for sustainable investments. According to a survey by Schroders, 75% of Southeast Asian investors consider ESG factors in their investment decisions, with 91% believing that companies with strong ESG profiles are more likely to be successful over the long term. This growing awareness of the importance of ESG factors in investment decision-making is leading to significant changes in the investment landscape in the region.