In this white paper, our Emerging Markets Fixed Income team and Sustainability Centre spell out the reasoning behind a new investment strategy that targets companies that can help Asian cities achieve the sustainable changes they need to make to face up to the pressures of an over-stretched infrastructure, migration and climate change.
With Asian cities on a steep population growth trajectory, current infrastructure – already poor – could become overwhelmed. Add to that the increasing frequency of extreme climate events and the need for Asian cities to achieve sustainable change has never been more urgent. Helping them do so presents a compelling investment argument.
Our Sustainable Asian cities strategy covers critical areas that offer investors sector diversification opportunities:
- Enhancing urban mobility
- Improving infrastructure
- Promoting integrated development
- Improving health and educational facilities
- Investing in innovative technologies that support the areas above.
To achieve this, the strategy is designed to invest in a mixture of green, social, sustainability (GSS), and sustainability-linked bonds (collectively known as sustainable-labelled bonds) as well as conventional bonds from issuers who derive at least 20% of their revenues from this theme.
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