What is sustainable finance? That's a $5.5 trillion question for investors

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SINGAPORE (BLOOMBERG) - Major fund managers, including BlackRock and Amundi Asset Management, are running into a roadblock as they seek to put more money into emerging-market sustainable investments: a lack of common global definitions that would make it easier to identify what to buy.. Read more at straitstimes.com.

SINGAPORE - Major fund managers, including BlackRock and Amundi Asset Management, are running into a roadblock as they seek to put more money into emerging-market sustainable investments: a lack of common global definitions that would make it easier to identify what to buy.

Many asset managers are shifting towards making sustainability criteria an essential part of their strategies. Challenges abound even without the issues posed by inconsistent global definitions. Disagreements about responsible investing recently led to a walkout of 11 people at NN Investment Partners, a US$313 billion Dutch fund manager.

Unlocking a potentially huge pool of available capital would allow emerging economies, many of which are in Asia, to access funds for developing hospitals, roads and schools as well as for moving towards more environmentally friendly sources of energy. To ease choked-up fund flows, many market participants say that so-called transition bonds can help develop responsible investing, particularly in Asia. This type of debt would allow companies shifting towards cleaner energy to access capital, and provide a broader range of potential investments.

 

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