Public to private divestment in Asia: trends and best practice

14 minute read

There has been a steady flow of high-emission assets from publicly traded companies to private entities over the last four years in Asia. We review trends in these transactions, and analyse how stewardship can be used to promote transparency.

The flow of assets moving from public to private hands has not accelerated, but has persisted at a higher rate than those headed in the other direction, and there is also evidence of shortcomings in disclosure. These findings come from a unique dataset compiled by the Anthropocene Fixed Income Institute (AFII).

Privately held assets may not be subject to the same level of emissions disclosure as their publicly held counterparts. Nor are they as susceptible to investor pressure beyond their direct owners. The net flow of assets from public to private entities, therefore, could be seen as a net negative by sustainability advocates.

AFII also analysed how certain deals conformed to best practice stewardship guidelines designed by investor groups, and found scant evidence that they are being followed in public-private transactions.

Download pdf (0.2mb)