EDWIN HUI | Executive Director, Capco
SHELLEY ZHOU | Managing Principal, Capco

Global greenhouse gas emissions and worries about climate risk are continuing to drive environmental, social and governance concerns to the top of the global business agenda, with emerging market and developing economies increasingly under the spotlight. These economies represent two thirds of global CO2 emissions, with China alone accounting for one third, and will generate the bulk of the growth in future emissions. Their actions on climate change will determine if the global 2050 net zero target can be met. In turn, APAC financial institutions, as pipelines of capital in the region, have become a critical factor in the success of climate change action and related ESG initiatives. 

This paper explores some key questions faced by financial institutions with an APAC emerging markets focus: how ready is APAC emerging markets for the transition, in the light of the most recent climate commitments brought about by COP26; how can financial institutions establish a net zero strategy for decarbonizing portfolios that is science-led, robust and verifiable by investors and regulators; and what are the implications for establishing robust ESG data strategies and the technologies that support them?