Sustainable Investment Awards 2021

ESG investment initiative of the year, fixed income: Aberdeen Standard Investments & AIIB

Paul LukaszewskiThe Asian Infrastructure Investment Bank (AIIB) and Aberdeen Standard Investments (ASI) formed a partnership aimed at building a sustainable environmental, social and governance (ESG) ecosystem in emerging markets in Asia, whilst developing debt capital markets for infrastructure and driving responsible investing in fixed income.

At the centre of the partnership is a $500 million debt fund, AIIB Asia ESG Enhanced Credit Managed Portfolio, managed by ASI who states it is the first environment, social and governance driven credit mandate in Asia.

In addition, the partnership launched the Sustainable Capital Markets Initiative, which was described as a "nice initiative that has real capacity for scale in a market that is still nascent regarding ESG," by one Environmental Finance Sustainable Investment Awards judge.

The initiative aims to expand ESG rating coverage in emerging Asia, improve ESG standards, catalyse ESG investing strategies and build capacity around responsible investing with various market participants including corporate bond issuers.

"We are proud to partner with AIIB to advance our shared vision for more sustainable capital markets in Asia," said Paul Lukaszewski, head of corporate debt - Asia Pacific at ASI. "With the immense need for future investment and financing for Asia's growth and development needs, we are focused on capacity-building for ESG investment in Asia's fixed income market by raising awareness and demonstrating that sustainable investment strategies can generate attractive long-term, risk-adjusted returns."

AIIB is promoting the Sustainable Capital Markets Initiative to other investors and governments to develop a green and mature debt capital markets in emerging markets in Asia.