AIMA, Simmons & Simmons launch ESG primer for Asia managers

The primer includes key concepts, recent developments in Asia, and how European regulations will impact Asia-based managers.

The Alternative Investment Management Association (AIMA), the global representative of alternative investment managers, has published its ESG primer – sponsored by law firm Simmons & Simmons – for asset managers based in Asia, according to a joint statement from both entities.

The primer (PDF) is designed to be a resource for asset managers in the region, including key concepts and taxonomy, recent developments in Hong Kong, Singapore and China, European and UK regulations and their implications for Asia-based managers, along with a checklist for developing an ESG strategy and roadmap.

“At present, impact investing is seen more typically in the private equity and private credit sectors,” the statement said.

“It is becoming apparent that private credit funds will be expected to maintain ESG policies for inspection by investors or regulators. However, while it is relatively uncommon in the hedge fund industry, responsible investing is becoming one of the most significant and fast-growing trends in the space,” it said.

ESG adoption in the global hedge fund industry remains low, with only around 40% integrating ESG factors into their investment processes, according to a recent BNP Paribas Corporate and Institutional Banking survey.

Besides the primer, AIMA has also set up the Asia-Pacific ESG working group, also in partnership with Simmons & Simmons, which includes key ESG specialists and experts in the asset management industry across Asia and Europe.

“The APAC ESG working group focuses on regulatory engagement on emerging ESG regulations, providing guidance for asset managers thinking about ESG considerations into hedge fund strategies and fostering dialogue between members,” Kher Sheng Lee, managing director, co-head of Asia-Pacific and deputy global head of government affairs at AIMA, said in the statement..