Asia Funds ESG Report 2022

In the third quarter of 2022, Morrison Foerster and AVCJ surveyed 100 Asia-headquartered Fund General Partners (GPs) with USD 1 billion+ AUM to gain their insights on how environmental, social, and governance (ESG) considerations are impacting their investments and the market. The survey results give fund managers an opportunity to benchmark themselves against peers and provide practical action points for funds to navigate the ESG maze. 

In summary, the results show that:

• ESG is increasingly a consideration in operations and investment decisions— but for the majority of GPs much of it remains superficial at best.
• GPs see the benefits of improved ESG practices for reputation and investment opportunities—but is it all talk and not enough action?
• Diversity, equity and inclusion (DE&I) is rising up the agenda—but relatively few investors are taking decisive action.
• ESG compliance is not yet an essential part of diligence and deal documentation— the industry needs to catch up.
• Asia GPs are generally behind other areas of the world on ESG adoption and practice and must move quickly or find themselves lagging significantly behind peers.
• There is regulatory pull to adhere to the latest requirements, but limited partners, shareholders, investors, customers, and employees are also asserting their influence more and more.