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The Intelligence Report – Ever deeper ESG and yet…

Global views and trends

BNP Paribas Asset Management

We are glad to report sustainable investing is making progress. One example is the market for green bonds, where issuance has grown impressively over a short time, as Felipe Gordillo and Xuan Sheng Ou Yong explain in the first article of this issue.

In the second article, Ligia Torres tells us of the accelerating adoption of ESG investing in Asia Pacific, in particular in the form of a significant improvement in corporate governance.

However, and picking up on the ‘Further yet to go’ theme of the previous issue, to successfully finance a low-carbon economy, much more green bond funding is required. One thing that could help is central bank endorsement – and green bond buying. In Asia Pacific too, there is more to be done on the ESG front: corporate culture should continue to evolve and global best practice should be translated into local action.

Finally, we discuss signs of reflation, as seen in recent market trading on the back of positive Brexit and trade news. Promising indeed, but will it all last?

Green bonds: making a dent, but further to go   

Green bonds have experienced a remarkable ‘multiplication of interest’, but issuance is still falling short of what is needed to finance the transition to a low-carbon economy.



Adopting ESG in APAC: adapting to the local set-up   

The adoption of ESG investing has accelerated in Asia Pacific, helped by a greater push by leading institutions or governments, but more work still needs to be done.



Here’s reflation, well, for now   

Markets were recently trading in a reflationary fashion amid brighter data and trade hopes, even if the economic slowdown may look like Q4 2018. Are the similarities actually there?



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