We believe investors should focus their efforts on practices that mitigate any agency problems, promote high standards of transparency and build relationships with companies and regulators through engagement.
Growth in the RI market is not set to dwindle any time soon. Looking ahead, the key market drivers over the next three years will be demand from investors (both institutional and retail), international initiatives such as the United Nations-backed Principles for Responsible Investment, as well as regulatory external and pressures from entities such as non-governmental organisations.
While Asia undoubtedly represents a unique investment opportunity, global investors should abandon the box-ticking approach based on the application of a single set of corporate governance rules and instead encourage Asian companies to embrace the spirit of corporate governance as their companies and economies evolve.
Matt Christensen is the global head of responsible investment at AXA Investment Managers June Choi is senior responsible-investment analyst at the same company