Sustainable investing strategies have ascended quickly in the last 10 years. The events of this year have been first and foremost a human tragedy, but they also have served as a catalyst to awakening interest and adoption of these strategies as reasonable approaches to remain resilient during these uncertain times. Indeed, in early 2020, J.P. Morgan Global Equity Research estimated that the sustainable investing market is expected to reach $45 trillion in assets under management (AUM) by the end of the year.

I participated in a recent industry summit organized by Cathay Financial Holdings, where senior executives met with high-level government officials and scholars to discuss the latest trends. Cathay Financial is one of the largest financial groups in Taiwan and Asia; and for the last four years it has been hosting one of the most influential summits on sustainable finance in the region. At the summit’s first edition, former U.S. Vice President Al Gore was the keynote speaker.

This article presents some key takeaways discussed at the summit and offers insights into how some of the largest suppliers of global brands are being engaged by investors on sustainability topics, as well as how sustainable finance is rising rapidly in Taiwan among institutional investors.

  1. Sustainable investment strategies cover roughly a third of Taiwanese AUM
  2. Reporting keeps evolving to better address investors needs
  3. Investors can play a transformational role in guiding corporate sustainability
  4. Corporate procurement requirements are decarbonizing supply chains

The rapid adoption of sustainable investing strategies and global brand commitments to become circular and carbon-neutral are beginning to drive change within global suppliers. As the cases from Taiwan demonstrate, active and continuous engagement and support — whether from investor to company or company to supplier — are very important components required to draft an effective strategy and its implementation.

Read the full article about sustainable investing by José Miguel Salazar at GreenBiz.