Energy Transition Platform 2 - Asia Research and Engagement

Asia Transition Platform

The Asia Transition Platform members represent a combined US$ 7.4 trillion.

In the first three years, the Platform will engage with at least 50 Asian companies across all of Asia’s leading financial markets, with an initial focus on carbon risk and coal at financial institutions and coal-exposed power companies.

“Accelerating energy transition in Asia is critical to addressing the climate crisis, yet there is a gap between global investors who want to drive change, and the companies in Asia vital to making it happen. The Asia Transition Platform aims to bridge this gap.”

Ben McCarron, Founder and Managing Director, ARE

“Over the past year we have seen encouraging developments in sustainability-related business practices and policies, such as a raft of net zero announcements. However, in reality, there is still a stark mismatch between where we are today and what is required to ensure that the objectives of the Paris Agreement are met. There is a huge opportunity for Asian companies to take the lead in tackling the climate emergency.”

Mirza Baig, Global Head of ESG Investments, Aviva Investors

“Asia needs to move rapidly to get onto a decarbonization trajectory, and the largest companies in each market must take the lead in this transition.”

Yasmine Svan Saarela, Senior Sustainability Analyst, Legal & General Investment Management

“The Asia Transition Platform gives a needed new impetus to global investor engagement with those Asian companies that are pivotal to energy transition.”

Doug McMurdo, Chair, the Local Authority Pension Fund Forum

“Although PGGM is a Dutch pension fund manager, we are critically aware that climate change is an issue that needs to be addressed globally. By participating in the Asia Transition Platform, we aim to encourage Asian companies to participate in the energy transition in a way that is both meaningful and appropriate.”

Andres van der Linden, Responsible Investment Advisor, PGGM

“ARE’s research, analysis and engagement expertise backed by a group of dedicated investment managers – and our own engagers – will underline the global necessity for an energy transition, allow for international best practice sharing, and will hopefully bring about further, necessary dynamic into the energy transition.”

Nina Roth, Director of Responsible Investment, Columbia Threadneedle Investments

“We welcome ARE’s launch of the Asia Transition Platform, which aids the transition from fossil fuel financing and use. We are committed to carbon neutrality in operation and investments by 2050 and we continue our active engagement with investees on their decarbonisation efforts.”

Jenn-Hui Tan, Global Head of Stewardship and Sustainable Investing, Fidelity International

Through our partnership with ARE on the Asia Transition Platform, we can collaborate with like-minded peers to constructively engage our portfolio companies in the region on decarbonization. This supports our focus on using our influence to ensure our global carbon-intensive investments set mature net-zero aligned commitments.

Jennifer Coulson, Senior Managing Director & Global Head, ESG , BCI

The Platform

Twenty institutional investors representing >US$ 10 trillion

Addresses the banking, power, and steel sectors across 10 Asian markets

Uses direct engagement, investor group meetings, AGM attendance, company and issue-based research, voting analysis, and media

Direct access in China through our established Beijing subsidiary

Collaboration with civil society actors

Year to Date Highlights

Catalysed a large Japanese bank to enhance its transition risk management approach, identifying and supporting high-risk clients to progress to net zero following two years of discussions.

Catalysed two Chinese banks to measure financed emissions across their portfolios following investor requests over multiple years.

Conducted direct engagement with 11 banks and utilities, and five investor-backed engagements in the first half of 2024.

Attended 19 AGMs covering power, steel, and banking giants in the Philippines and China.

Published ‘Japan’s Ammonia Strategy: Excessive Costs Signal Need for Alternatives in the Power Sector’, which analyses the country’s ammonia co-firing plan for coal power and finds that high production costs and insufficient subsidies pose serious risks to its long-term viability. The report urges a shift toward more affordable and climate-resilient energy solutions.

Published ‘Shifting Gears: Key Asian Banks Can Accelerate the Energy Transition’ which assesses nine leading banks in Japan, Singapore, and South Korea on their approach to climate change and progress toward achieving net-zero emissions in their loan portfolios by 2050.