Private Equity Investors Guided on Achieving Decarbonisation Goals Through Sustainability Management Framework
Fullerton Fund Management Partners with UNDP to Develop Sustainability Management Framework for Private Equity Climate Investing in Asia
SINGAPORE, April 17, 2024 /PRNewswire/ — Fullerton Fund Management (Fullerton) has joined forces with the United Nations Development Programme (UNDP) to create a Sustainability Management Framework aimed at guiding private equity investors in Asia towards achieving their decarbonisation goals. This framework, built on UNDP’s SDG Impact Standards, offers a roadmap for private equity companies to adopt practices that can accelerate their net zero targets.
The environmental and commercial case for climate investments in Asia is strong, with the market size for green businesses in the region expected to exceed US$4 trillion by 2030. Governments have committed to decarbonising their economies, requiring around $53.5 trillion in investments between 2020-2060 to meet net-zero targets. Private equity has a crucial role to play in bridging the funding gap alongside public spending.
Private equity investors are in a prime position to influence portfolio companies on climate and sustainability issues. However, disclosure standards in the region are inconsistent, making it challenging for investors to assess the environmental impact of their investments. The Sustainability Management Framework provides guidance on integrating sustainability considerations and the Sustainable Development Goals (SDGs) into strategy, management, transparency, and governance practices to achieve decarbonisation goals.
Huck Khim Tan, Deputy Chief Investment Officer and Head of Alternatives at Fullerton Fund Management, stated, “As an investor of private capital in Asia, we recognize that sustainability issues have significant implications for a company’s investment value, especially for private equity with a long investment horizon. With the launch of this Sustainability Management Framework in collaboration with UNDP, we are committed to integrating sustainability considerations in our private equity climate investments.”
Haoliang Xu, UN Under Secretary General and Associate Administrator of UNDP, emphasized the role of the private sector in accelerating Asia’s decarbonisation efforts. He expressed delight in collaborating with Fullerton Fund Management to develop the Sustainability Management Framework, leveraging UNDP’s SDG Impact Standards for private equity funds.
The framework aims to help private equity investors align their internal practices and decision-making processes with their decarbonisation goals. By sharing real-world case studies and insights, Fullerton hopes to enable peers to evaluate relevant sustainability aspects necessary for optimizing decarbonisation in the region.
About Fullerton Fund Management:
Fullerton Fund Management is an active investment specialist focused on optimizing investment outcomes and enhancing investor experience. With expertise in equities, fixed income, multi-asset, alternatives, and treasury management, Fullerton helps clients achieve their investment objectives. Headquartered in Singapore, Fullerton is part of the Seviora multi-asset management group.
About United Nations Development Programme (UNDP):
UNDP works in 170 countries and territories to eradicate poverty and reduce inequality. The UNDP Sustainable Finance Hub harnesses public and private capital for the Sustainable Development Goals, driving systemic change towards a sustainable financial architecture that benefits people and the planet.
For more information, visit www.fullertonfund.com and learn more about UNDP at undp.org or follow @UNDP.