Executive summary
Fullerton Fund Management (“Fullerton”) has partnered with the United Nations Development Programme (UNDP) to develop a Sustainability Management Framework to guide private equity climate investing in Asia, using UNDP’s SDG Impact Standards as a foundation.
The key takeaways are summarised below:
- Environmental and social issues can influence investment value, especially for long horizon investments such as private equity.
- In regions where corporate sustainability disclosures are poor, such in emerging Asia, a framework is needed to guide the investment-decision making process to systematically consider sustainability issues.
- The Sustainability Management Framework guides private equity investors on how to integrate sustainability considerations and the sustainable development goals (SDGs) into their strategy, management, transparency and governance practices, to achieve their decarbonisation goals.
- Climate investors can conduct a critical evaluation of the various possible investment practices and decide on the unique set of practices which aligns best to their investment mandates and stakeholders’ requirements.
- With the development of the Framework, we are committed to the integration of sustainability practices and references within the private equity investment lifecycle, and to share our insights through case studies as we progress on this journey.
For insights on the framework, please download the report here.