Investors across the Asia-Pacific region are intensifying their focus on nature-related investments, despite the ongoing politicisation of Environmental, Social, and Governance (ESG) factors. According to Pollination’s 2025 Nature Finance Focus report, 96% of surveyed investors acknowledge that ESG politicisation is influencing their strategies. However, this has not deterred their commitment to nature investments, with all respondents from Australia, Japan, and Singapore planning to increase their exposure.
The report highlights that motivations for nature investing vary across the region. In Singapore, environmental outcomes drive investments, whilst financial returns are the primary motivator for Australian and Japanese investors. “Nature is increasingly recognised for its central role in both risk and return,” said Zoe Whitton, Managing Director and Head of Strategy and Impact at Pollination. She emphasised the need to align financial models and policy incentives to mature this asset class.
Investor understanding of sectoral nature risks has also evolved, with significant increases in perceived risks across chemicals, materials, and manufacturing sectors. Singapore and Australia lead this shift, whilst Japan continues to focus on agriculture and energy production.
To scale nature exposure, Singaporean investors are investing in in-house expertise, whereas Australian investors prefer partnerships. Japan faces capability challenges, with 50% of investors citing a lack of expertise as a barrier.
Pollination’s report underscores the growing importance of nature in investment portfolios, despite political challenges, and suggests a strategic shift towards integrating nature into economic foundations.
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