September 16, 2025
With its rapid economic growth and favourable demographics, Asia is presenting increasingly attractive investment opportunities for global investors. BCI has exposure to the region through our active and passive public equities strategies, as well as direct investments in our Private Equity and Infrastructure & Renewable Resources portfolios – most recently in India, Japan, Malaysia, and the Philippines.
Our investment footprint means Asia is an increasing focus for BCI’s stewardship program. We are observing strong regional momentum for corporate governance reforms that will enhance shareholder value and ultimately accelerate progress on other material environmental and social issues – creating a compelling case for increased engagement.
Over the past two years, BCI deepened our efforts across Hong Kong, India, Japan, Malaysia, Singapore, South Korea, and Thailand through collaboration with international investors, participation in meetings with regulators and companies, policy consultation submissions, and ESG-related joint statements. This work aligns to our investment objectives, and we take a holistic view of advancing progress.
An integrated approach
In Asia, BCI’s approach to stewardship combines company engagement with strategic policy input, recognizing these efforts are most effective when pursued together. To maximize our impact and resources, we also work in close collaboration with other global investors and industry organizations like the Asia Corporate Governance Association (ACGA) and Asia Research & Engagement (ARE).
Many companies are not only receptive to this approach but increasingly proactive in embracing organizational changes such as greater shareholder outreach, strengthened governance practices, and expanded ESG initiatives. Across our engagements, we are intentional about emphasizing the critical role that companies play in driving reforms and elevating these markets to align with global standards.
We continue to advocate for consistent, comparable, and quality ESG and climate disclosures aligned to the International Sustainability Standards Board (ISSB) standards. Over the past year, BCI responded to consultations with the Korean Sustainability Standards Board and Sustainability Standards Board of Japan, while participating in broader policy engagements alongside global investors, to advance mandatory reporting in these markets.
In parallel, BCI engaged directly with portfolio companies. For example, supporting shareholder proposals at Japanese companies like Mitsui & Co., Mitsubishi Corporation, Sumitomo Corporation, and Chubu Electric Power Co. asking for increased disclosure on the impact of failing to meet a 1.5°C target under the Paris Agreement. In South Korea, we submitted questions at the annual general meeting (AGM) for SK Hynix Inc., a memory chip and semi-conductor company, on their emission reduction targets and renewable energy strategy.
Delivering investment value
BCI’s ESG initiatives directly support the objectives and priorities of our investment teams, helping to deliver long-term, sustainable returns for our clients. We have dedicated ESG experts embedded across our business, working hand-in-hand with portfolio managers to factor ESG risks and opportunities into investment decisions.
Our focus in Asia is no exception. BCI’s regional activities are helping to shape the attractiveness of the market and address underlying risks that could impact long-term returns.
For example, BCI’s internally managed Active Emerging Markets Equity Fund has many years of experience in Asia-Pacific, providing valuable insight into the ESG topics and engagement opportunities across the region that could influence portfolio performance. The deep expertise and capital allocation perspective of the investment teams adds credibility to our overall approach with companies and regulators.
“Companies aren’t only hearing from a standalone ESG team – they hear directly from our portfolio managers who are actively allocating capital. This alignment gives BCI’s voice real weight and helps companies understand that ESG considerations are directly embedded into our investment decisions.”
– Shannon Gong, Principal, ESG
Launched in early 2024, South Korea’s Corporate Value-Up Program aims to improve corporate governance and enhance shareholder value in response to South Korea’s persistent valuation discount compared to global peers. It also shows the country’s openness to hearing from international investors on governance reforms.
Leveraging this opportunity, BCI increased our strategic collaborative engagement in the country. This included participating in an ACGA delegation to South Korea to meet with regulators and attend corporate AGMs, as well as supporting the ACGA Korea Working Group’s broader governance initiatives. We also co-signed a letter to the Financial Services Commission advanced by the Asia Investor Group on Climate Change and responded to policy consultations to enhance sustainability disclosures.
A milestone for market reforms
In 2025, South Korea’s National Assembly passed significant amendments to its Commercial Act, aimed at addressing the structural issues behind the country’s valuation discount. Through participation in investor coalitions, BCI contributed to the broader reform momentum that led to these changes.
Notably, board director’s fiduciary duties were expanded to include shareholders alongside the company. Other improvements range from a higher threshold for board independence to mandatory electronic meetings, in addition to physical meetings, for listed companies with a market capitalization over KRW 2 trillion. A ‘3% Rule’ was also introduced, limiting the largest shareholders’ voting power to 3% when appointing audit committee members.
The country’s primary stock market index (KOSPI) surged nearly 33% between January 1 and August 29, 2025, outperforming the MSCI Asia Pacific index, driven in part by optimism around governance reforms in addition to the new administration and other macroeconomic factors.
“With South Korea representing a significant part of BCI’s active global emerging markets equity portfolio, these improvements have direct relevance to our investment outcomes. Stronger minority shareholder protections and enhanced transparency support our investment objectives and should help address the country’s valuation discount over time.”
– Jean-Christophe Lermusiaux, Managing Director, Global Emerging Markets.
Learn more about BCI’s approach in our 2024-2025 Stewardship Report .
