Two recent events in Asia will put greater emphasis on environmental, social and governance issues, and socially responsible investing more generally. The first was the March earthquake and tsunami tragedy in Japan. In the wake of the nuclear disaster at the Fukushima power plant more investors can be expected to consider ESG criteria and companies will focus more intensely on how they communicate with shareholders.
The second event was the March announcement by China of the country’s 12th five-year economic plan. The details include a number of explicit references to environmental and social factors. The country’s leadership has now set objectives that target the quality and not just the absolute level of economic growth that has dominated previous plans.
Socially responsible investing in Japan can trace its roots back to the formation of the Valdez society that adopted a 10-point code of corporate environmental conduct in 1992 and was named after the Exxon Valdez, the oil tanker that ran aground in Alaska in 1989.