Nordea Asset Management is to open an ESG hub in Singapore which will be the group's first such base outside of its Nordic headquarters.

The hub, to be implemented from Q4 of 2021, will allow Nordea to be closer to its clients in Asia-Pacific and better understand how the region's companies are embracing sustainability, it said in a statement today (6 September).

The hub will be constructed around a group of ESG analysts, recruited locally and integrated within the asset manager's RI team based in the Nordics. Local knowledge and perspectives will add value to NAM's ESG integration process and enhance the ability of portfolio managers to identify the winners of tomorrow - a key tenet of the group's ESG ‘STARS' fund range.

It said Singapore is an attractive choice for its first overseas ESG hub due to its stable investment environment and the government's commitment to tackle carbon emissions and embrace the doctrines of sustainable finance. Singapore's Green Finance Action Plan, launched in 2019, marks a significant step in the country's transition towards a sustainable future.

Nils Bolmstrand, CEO of Nordea Asset Management, said: "NAM is pleased to establish an ESG hub in Singapore, which will enable us to enhance our local servicing, ESG capabilities, investment platform and distribution reach in the region. Sustainability issues have gained significant interest in Asia in recent years, and investors are increasingly asking for ESG solutions. The time is right to meet that demand."

NAM's new ESG hub will supplement its local Singapore distribution office, established in 2013.