MSCI Research: There is still a significant gap between the energy structure and net zero transition goals in the Asia-Pacific region.

The latest analysis from MSCI ESG and Climate Research Department shows that the pace of climate transition progress among Asia-Pacific companies varies. There are differences in the development progress of carbon emission disclosure, climate target setting, energy structure, and green and transition capital flows in various markets, which may be due to regulatory differences, policy support, shareholder preferences, and industry structure. Wang Xiaoshu, head of MSCI ESG and Climate Research Department for Asia-Pacific, said: "Global climate change and temperature records are constantly being broken, and the risks facing the Asia-Pacific region are increasingly intensifying, which could lead to huge and irreversible impacts. Given its economic contribution and emission growth trends, the climate path of the Asia-Pacific region cannot be ignored to achieve global net zero emission goals. However, our research shows that there is still a significant gap between the development of energy structure in the Asia-Pacific region and the net zero pathway. The clean energy transition is at a critical moment, and capital markets are playing an increasingly important role in enhancing the feasibility of coal phase-out plans." Wang Xiaoshu added: "Nevertheless, we also see that Asia-Pacific companies are increasingly prominent in clean technology production and innovation. With the increasing stringency of climate-related regulations in the Asia-Pacific region, and the increasing pressure from investors, it is hoped that this will drive companies to take further action and coping measures."