More than half (73%) of China’s 30 influential institutional investors assessed now recognise the financial risks and opportunities linked to climate change, indicating that climate integration in their portfolios is becoming mainstream investment practice in China.
Asian investors are increasingly integrating climate considerations into governance structures and processes. From the same dataset, 63% of China’s investors have started to have board-level oversight of climate change, which is on par with the Asian investor benchmark.
The data is an exclusive China extract that complements the sixth edition of the Asia Investor Group on Climate Change (AIGCC)’s annual flagship report, ‘The State of Investor Climate Transition in Asia 2025’, which reviews 230 of the most significant and influential investors across Asia. AIGCC’s analysis uses 26 climate metrics to assess investors’ performance in managing their climate risks and opportunities.
In addition, AIGCC’s research finds a growing proportion of China’s investors are progressing in some aspects of climate investment and corporate engagement, including:
- Policy on Climate Integration in Investments
50% of Chinese investors have integrated climate considerations into their investment policies.
- Publication of climate-related disclosures aligned with international standards, for example, International Sustainability Standards Board (ISSB).
40% of Chinese investors, collectively managing ¥71.775 trillion CNY (US$9.9 trillion in AUM), have now published their climate-related disclosures.
- Biodiversity or Nature Disclosures/ Strategy
34% of Chinese investors have adopted a policy or made disclosures relating to the management of climate and biodiversity risks in their portfolios.
(vs Overall Asia Investor Average of 33%).
- Involvement in Climate Engagement Initiatives
40% of Chinese investors recognise the importance of engaging with their portfolio companies to drive decarbonisation and an organisational climate-aligned transition strategy
(vs Overall Asia Investor Average of 36%).
However, while there is progress, China’s investors have the capacity to accelerate their progress in several climate metrics, including disclosures and market engagement:
- Climate Solutions Investments
Only 20% of China’s investors have set targets aimed at climate-aligned investments
- Publication of Climate Scenario Analysis
Only 27% of China’s investors have published advanced climate scenario analysis.
- Interim Portfolio Emissions Reduction Targets
Many of China’s investors still have not committed to setting 2030 or 2035 emissions reduction targets. (Only 16% of China’s investors have done so.)
- Transparency and support of climate policies
Many of China’s investors have not yet indicated a level of support for climate-aligned government policies. (Only 3% of China’s investors have done so.)
AIGCC CEO, Rebecca Mikula-Wright said: “We are encouraged to see Chinese investors demonstrating a growing awareness and action on the financial implications of climate change. Investors are pivotal in achieving China’s energy targets.
“China’s abundance of land and natural resources, coupled with the urgent need for energy security, present significant investment opportunities in climate solutions, particularly in renewable energy and nature-based solutions.
“We are encouraged by the performance of Chinese asset managers but asset owners, as stewards of capital, are positioned to be the best drivers of climate action. Their mandates provide a catalyst for asset managers’ investment decisions and stewardship practices that will help accelerate China’s climate transition.
“We also encourage a collaborative and open dialogue between investors, corporates and policymakers to create a supportive policy and regulatory environment in China for climate-aligned investment.”
Invesco Great Wall Fund Management, Head of Client Portfolio Manager and Head of ESG Research, Investment Department, Su Yingying said: “As an institutional investor based in China, we recognise our role in supporting our clients who have investment objectives to contribute to China’s climate goals and capture opportunities in climate solutions.
“Corporate engagement with portfolio companies is an effective tool to promote long-term sustainable value creation for the benefit of our clients by supporting companies in managing climate risks and capturing growth opportunities from transition. This approach aligns with our fiduciary duty that will provide both the financial security and long-term resilience of our portfolios.”
AIGCC thanks MSCI for their sponsorship of the report.
AIGCC’s ‘The State of Investor Climate Transition in Asia’ report is the most comprehensive and reliable snapshot of how decision-makers in the region’s capital markets are managing climate and nature; perhaps the biggest factors influencing the region’s long-term economic development.
Download the Report