Tokyo events show climate theme gaining traction in APAC

Ahead of the PRI in Person event in Tokyo, the SDI AOP and APG recently hosted an exclusive roundtable for some of the world’s largest asset owners and asset managers. Against a beautiful backdrop of a traditional Japanese garden, participants engaged in discussions around the practical integration of sustainability themes into their investment strategies. 

Claudia Kruse, Managing Director of Global Responsible Investment & Governance and Chair of the Board of the SDI AOP, kicked off the presentations, outlining the goals and objectives of the SDI AOP, a community that is asset owner led and backed by APG, AustralianSuper, BCI and PGGM. The fact that the data is transparent and can be easily audited and integrated into workflows to drive direct allocation of capital into SDGS, is critical given concerns over greenwashing, which resonated with the audience.  

Climate solutions well represented

Research Director James Leaton followed up with the latest quarterly updates to the data. Of particular interest were topics relating to the thematic tagging approach. Climate change cuts across the SDGs and is the most common starting point for investors. The SDI data already identifies over 1000 entities generating revenues from climate solutions. The announcements from the Japanese Prime Minister Kishida at the following conference demonstrated the increasing alignment of financial systems around the world with this theme.

Prime Minister Kishida: “We are seeing demand from around the globe for reliable information on climate solutions and opportunities. Discussions with the APAC investor community indicate the climate theme is gaining momentum in the region.”

The SDI Innovation Outlook which quantifies and describes the alignment of a company’s patent portfolio with the UN SDGs, was another area of interest for those attending. Ultimately, the solution is based on the idea that patents give an indication of how a company’s technology and solutions will positively contribute to the UN SDGs through future products and services. In other words, where companies put their R&D dollars is where the future growth will come from. This forward-looking indication is a clear benefit for quant analysis and portfolio building use cases.

Integrating the data

Other use cases were highlighted in an interactive session, moderated by Hans op ‘t Veld, the Principal Director for Responsible Investment at PGGM and Chair of the SDI AOP Members & Markets Committee. Presenting their experiences working directly with the data integration were Clare Baldwin, Senior Director ESG & Stewardship of AustralianSuper and Claudia Kruse, on behalf of APG.

The presenters demonstrated the wide applicability of the data, which can be used to serve both internal active managers and passive investors. And, because the SDI AOP data is multi-asset class, the data can be used across equities, fixed income and real estate – and across a portfolio, rather than just a single fund.

The SDI AOP is a community where feedback is encouraged to inform the research and development of the data. The Tokyo Roundtable and similar events enable asset owners and managers to engage on topics that are most important to them. If you are interested in learning more or being notified of future events, contact sdi@qontigo.com.