Nordea Asset Management (NAM) has set up a new an environmental, social and governance (ESG) hub in Singapore to tap the rising demand for sustainable investment in the Asia-Pacific region.
NAM will use the new hub to be closer to clients in the Asia-Pacific region and serve the customers with better advice and solutions within responsible investment.
The new office will complement the firm’s existing Singapore office, which was established in 2013.
It will be fully integrated with NAM’s ESG-focused internal investment boutiques as well as its Responsible Investments team.
The firm plans to start implementing the hub in the latter part of the year.
NAM CEO Nils Bolmstrand said: “Sustainability issues have gained significant interest in Asia in recent years, and investors are increasingly asking for ESG solutions. The time is right to meet that demand.”
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NAM said it selected Singapore to establish its first overseas ESG hub due to its stable investment environment and the government’s commitment to tackle the problems of carbon emissions.
The country launched Green Finance Action Plan in 2019 as part of its strategy to transition towards a sustainable future.
In the same year, NAM added the first fixed income fund to its ESG Stars range with the aim of detecting long-term changes that are essential for credit quality.
ESG moves by other asset managers
Recently, DWS Group, the asset management arm of Deutsche Bank, found itself in legal trouble in the US after its former sustainability head said that the company exaggerated its sustainable investing criteria to manage its assets.
The firm later refuted the ejected allegations on it ESG disclosures, without commenting on litigation or regulatory matters.
In July this year, Robeco announced plans to scale its business in Singapore and advance ESG capabilities in Asia.
This included a plan for expanding its range of sustainable strategies for investors and expanding its investment team in Singapore.