Letters | Investors have their pick as Asia’s firms go for green prosperity
- Readers discuss investing in emerging markets, Hong Kong Marathon numbers, and a proposed MTR station
The notion that the developing world should get rich first and then go green is increasingly nonsensical. Unabated climate change severely threatens rainfall patterns, water tables and the ecological services society depends upon. An economy simply cannot deliver a high living standard while also battling a chronic water scarcity or routine crop failures.
The truth is that emerging markets will have to follow a development path different from that once trod by today’s wealthy countries. It is the only path that is open to emerging markets that will raise the standard of living in the long term. In practice, this means using technology to leapfrog development stages.
While western Europe is only now shifting aggressively towards renewable energy in the form of wind and solar power, the likes of India, Malaysia and Thailand can – and must – make the same shift at a far earlier point in their development.
For Hong Kong’s investment community, this means the exciting prospect of tapping into businesses that are embedding sustainability into their mission from the outset and catalysing sustainable development across the region. Many home-grown companies in Asia’s emerging markets are tackling climate change problems with innovative and promising solutions. Investors have an exciting opportunity to be part of their stories.
This is especially true as companies benefiting from a shift to a more sustainable development path can expect to experience greater growth tailwinds while taking fewer risks than those threatened by such a shift.
Emerging market investors attuned to the opportunities will be able to find long-term, sustainable returns while also helping to build a better world.
For example, Taiwan-based Voltronic Power makes renewable energy products for homes and businesses, including solar inverters. It estimates that it sold around 325,000 photovoltaic inverters in 2020, cutting carbon emissions by about 420,000 tonnes.
The prevailing perception is that investing in emerging markets means investing in fossil fuels and heavy industry. But there are also green businesses like Voltronic Power, with the added potential of helping economies around the world take tangible steps towards their net zero carbon targets.
Emerging market companies have the chance to build business models that are kinder to the planet and people right from the start.
For investors, throwing your weight behind such companies will lead to growth derived from the shift to a more sustainable development path. Such companies are also likely to continue to provide attractive long-term returns, making them sustainable in more than one sense of the word.
Jack Nelson, portfolio manager, Stewart Investors
Hong Kong Marathon should have its own day
I suspect the organisers, the Hong Kong Association of Athletic Affiliates (HKAAA), are trying to emulate much larger marathons held in Boston, New York and London, among other cities, but why? Those cities are putting on one race – a marathon – whereas Hong Kong is putting on three races on the same day.
It’s great that so many participate in the three events yearly and that the numbers are getting back up to pre-Covid levels. Participation in the 10km and half-marathon races is admirable. But in the end, the only people who can honestly say they finished the Hong Kong Marathon are those who ran 42.2km.
If Hong Kong wants to compare itself to the big races, then it should schedule the marathon on its own day and allow the numbers to grow. Once Hong Kong gets 40,000 or more participants in the marathon alone, it will be a world-class race, not needing the short-race crutch to boost its numbers and supposed prestige. Then the HKAAA can give separate prominence to the shorter races so those participants can also shine.
J. Herbert, Sai Kung
Why a 10-year wait for Science Park station?
In 2021, Mrs Carrie Lam said the government would invite MTR Corporation to study the construction of a new East Rail line station near Science Park. According to Mr John Lee’s 2022 policy address, this station will be built by 2033. The government should explain why this project would take a decade.
According to MTR Corp, planning began in 2020 for the Tung Chung line extension, with environmental impact assessment conducted that year. Construction is expected to begin this year, with completion targeted for 2029. In contrast, in answer to our inquiries, the Development Bureau could not provide a similar timeline for constructing Science Park station, and cited the challenge of building on an operational line.
We urge the Legislative Council Subcommittee on Matters Relating to Railways and the Ombudsman to look into this matter and persuade the relevant parties to start on the new station soon.
Li Shun and Zhong Yueyun, Kowloon Tong
