The China-led Asian Infrastructure Investment Bank (AIIB) has appointed Aberdeen Standard Investments (ASI) to manage the $500 million Asia ESG Enhanced Credit Managed Portfolio. It consists of mainly Asian infrastructure related bonds, including green and unlabelled issuances.
In a joint statement, the AIIB and ASI said that ESG factors will be “fully integrated in the investment process and portfolio management”.
ASI will also work with the AIIB on the launch of the Sustainable Capital Markets Initiative, which aims to “act as an engine of change to improve ESG standards and build capacity around responsible investing with various market participants,” a joint statement said.
DJ Pandian, vice president and chief investment officer of the AIIB said: “We believe that institutional investors are a key part of the solution to finance Asia’s infrastructure investment needs over the coming decades. Integrating ESG standards into capital markets in emerging Asia will be important to achieving long-term sustainable development goals.”
At the AIIB’s annual meeting in Luxembourg earlier this month, the organisation’s president, Jin Liqun, underlined its vision to become “the bank that connects Asia to the world”. He also highlighted the need for infrastructure investment of approximately 8% by its lower and lower-middle income members to drive sustainable growth.
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