Morrison Foerster has released its 2025 Asia Fund ESG + Sustainability Investment Survey Report: Opening New Channels, based on a survey of 100 general partners (GPs) managing at least US$1 billion across private equity, credit, sovereign wealth funds, insurance asset managers, and pensions. The report captures the perspectives of Asia-Pacific-based GPs—including 35% from Mainland China and Hong Kong, and 25% from Japan—on key ESG themes and how these shape investment strategies.
Key findings show that 60% of GPs have established ESG committees, with over half solely focused on ESG issues. While 87% perform ESG due diligence in most or all transactions, nearly half have rejected deals due to ESG risks. In response to regulatory scrutiny and AI adoption, 91% of tech-focused GPs have implemented responsible tech policies. Despite rising complexity, only 21% have recently updated policies—underscoring regulatory volatility as a major challenge. Meanwhile, over half have begun divesting high-carbon assets or are requiring investees to transition away from carbon-intensive products.
The report concludes that ESG performance is viewed not only as a compliance necessity but as a value-enhancing lever, with more than 90% of GPs believing that proactive ESG practices improve exit outcomes and valuations.
