This report, in association with Morrison Foerster, features insights from 100 Asia-headquartered Fund General Partners (GPs) with USD$1 billion+ AUM on how environmental, social, and governance (ESG) considerations are impacting their investments and the market.

Key findings include:

• Asia-based GPs are dedicating additional resources to their sustainability efforts—but is it enough and are these changes taking place in the most pressing areas?
• Work on sustainability policies and implementation has slowed, and GPs remain reluctant to include sustainability performance metrics in remuneration structures.
• Sustainability work goes well beyond climate-related issues—with many GPs working particularly hard to make progress on DE&I.
• Sustainability is a consideration at each stage of the investment process—but poor sustainability credentials at a potential portfolio company are rarely seen as a barrier to investment.
• Fewer GPs are dealing with accusations of greenwashing—but there is concern about the potential for such controversy.
• GPs recognize the potential for strong and improving sustainability performance to drive value and return.
• GPs face significant challenge as they work to integrate sustainability practices into their operations.
• Responsible tech is a key theme for investment and sustainability in 2023—but some GPs may be missing out.
• Respondents are taking action to make changes at fund or portfolio companies to improve performance toward emissions reduction or decarbonization.

The report is also available from mofo.com