The new EU taxonomy defining what is truly 'sustainable' will offer essential clarity and help counteract greenwashing. We also review the implications for investors of Chinese bonds becoming more prominent in global benchmarks. Elsewhere in Asia Pacific, we assess the state of investment stewardship. Finally, we note that Goldilocks may currently prevail on the economic scene, but her grip on the throne is tenuous at best.
|The EU taxonomy: the metric system of the 21st century|
|The proposed classification will be a ‘living’ list of all economic activities that can genuinely be seen as environmentally sustainable, ensuring a common understanding of what is ‘green’.|
|Chinese bonds: catch me if you can|
|Investors face radical changes to their portfolio allocations as Chinese bonds assume greater prominence in the global benchmarks that typically guide fixed income investments.|
|Good stewardship is key to sustainable investment in Asia Pacific|
|Despite a major step-up in sustainable investment, standards vary greatly in Asia Pacific. Close engagement and stewardship can lead to real progress where needed.|
|Beware the risks of a fragile Goldilocks|
|While markets are pricing in a Goldilocks setting, a global slowdown or the US economy overheating, leading to fresh Fed tightening, could expose just how fragile this backdrop is.|
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