The most requested data in Asia will be security-level exposure to climate risk, portfolio-level exposure to climate risks, and scenario metrics for climate change.
A white paper by Cerulli says asset owners and managers are increasing their climate change mitigation efforts and prioritising risk reporting standards.
Many institutional asset owners have pledged to net zero, with 44% in Asia, 43% in Europe and 32% in North America having made this commitment, according to the Boston-based global research and consulting firm.
The paper found approximately four in five European institutional investors request energy transition risk and physical climate risk exposure data, while over three in five requested data on their portfolio’s carbon footprint.
In North America, 38% of asset owners require climate risk reporting from managers and 34% plan to within the next two years.
In Asia in the next two years the most requested data by asset owners will be security-level exposure to climate risk (74%), portfolio-level exposure to climate risks (69%) and scenario metrics for climate change (57%).
Cerulli suggests within the next two years, asset managers should expect a “strong uptick in interest in measuring portfolio temperature”.
David Fletcher, Cerulli’s Senior Editor, said: “Asset managers continue to face challenges and are seeking better quality data.”
“We believe that institutional investors will be looking to partner with asset managers that offer strong expertise in climate risk assessment and reporting.”
Read more articles like this on Regulation Asia’s sister publication, ESG Investor.