Fullerton FM & UNDP add PE ESG framework

Fullerton Fund Management has partnered with the United Nations Development Programme (UNDP) to develop a sustainability framework to guide private equity climate investing in Asia.

The Sustainability Management Framework is designed to help private equity investors align their strategy, management, transparency and governance practices to achieve net zero, and uses the UNDP’s SDG Impact Standards as a foundation.

Fullerton says that through the framework, climate investors can conduct a critical evaluation of the various possible investment practices and decide on the unique set of practices which aligns best to their investment mandates and stakeholders’ requirements.

Huck Khim Tan, Deputy Chief Investment Officer and Head of Alternatives at Fullerton Fund Management, said, “As an investor of private capital in Asia, we recognise that sustainability issues have considerable implications for a company’s investment value, particularly for private equity, which has a long investment horizon. With the launch of this Sustainability Management Framework with support from the UNDP, we are committed to integrating sustainability considerations in our private equity climate investments. More importantly, we hope to share this framework and insights from real-world case studies with our peers, to enable them to evaluate the relevant sustainability aspects required to optimise decarbonisation in the region.”

Haoliang Xu, UN Under Secretary General and Associate Administrator of the United Nations Development Programme, said, “The private sector has a significant role to play in accelerating Asia’s decarbonisation, including in collaboration with and alongside efforts from actors in the public and multilateral domains. Recognising this, we are delighted to collaborate with Fullerton Fund Management to develop this Sustainability Management Framework, leveraging the UNDP’s SDG Impact Standards for private equity funds. This framework is useful for climate investors who are looking to align their internal practices and decision-making to achieve their decarbonisation goals.”