Display to 28 February 2026
AWARDS ISSUE
ESGBUSINESS AWARDS 2024 CELEBRATES OUTSTANDING SUSTAINABLE COMPANIES
CLEAN BEAUTY SELLS, BUT ONLY WITH SCIENCE-BACKED PROOF
INDOSAT CONVERTS CLIENTS’ WASTE INTO MOBILE CREDITS
SAFETY FEARS THREATEN HONG KONG’S GREEN TRANSPORT DREAM
BANK MANDIRI LETS CUSTOMERS KEEP TRACK OF PERSONAL EMISSIONS
Vikram Sinha President-Director and CEO, Indosat p. 10
PUBLISHER & EDITOR-IN-CHIEF Tim Charlton
EDITORIAL MANAGER Tessa Distor
PRINT PRODUCTION EDITOR Eleennae Ayson
PRODUCTION TEAM Frances Gagua
Diana Dominguez
Vincent Mariel Galang
Noreen Jazul
Jilliane Rae Manuel
Ibnu Prabowo
EDITORIAL RESEARCHER Angelica Rodulfo
GRAPHIC ARTIST Simon Engracial
EDITORIAL ASSISTANT Vienna Verzo
COMMERCIAL TEAM Jenelle Samantila
Dana Cruz
Danielle Goh
ADVERTISING CONTACTS Shairah Lambat shairah@charltonmediamail.com
AWARDS Julie Anne Nuñez-Difuntorum awards@charltonmediamail.com
ADMINISTRATION Eucel Balala accounts@charltonmediamail.com
EDITORIAL editor@esgbusiness.com
SINGAPORE
Charlton Media Group 101 Cecil St. #17-09 Tong Eng Building Singapore 069533 +65 3158 1386
HONG KONG
Charlton Media Group Hong Kong Ltd Room 1006, 10th Floor, 299QRC, 287-299 Queen’s Road Central, Sheung Wan, Hong Kong
MIDDLE EAST
FDRK4467, Compass Building, Al Shohada Road, Al Hamra Industrial Zone-FZ Ras Al-Khaimah, United Arab Emirates www.charltonmedia.com
Can we help?
Editorial Enquiries: If you have a story idea or press release, please email our news editor at editor@esgbusiness.com. To send a personal message to the editor, include the word “Tim” in the subject line.
Media Partnerships: Please email editor@esgbusiness.com with “partnership” in the subject line.
Subscriptions: Please email subscriptions@charltonmedia.com. ESGBusiness is published by Charlton Media Group. All editorial is copyright and may not be reproduced without consent. Contributions are invited but copies of all work should be kept as ESGBusiness can accept no responsibility for loss. We will however take the gains.
*If you’re reading the small print you may be missing the big picture
FROM THE EDITOR
Indonesia’s Indosat has converted plastic bottles into Rp14m ($890) in mobile credits for 1,032 clients through its waste-to-credit initiative. CEO Vikram Sinha discusses how this programme aligns with the company’s ESG roadmap and what’s next in its sustainability push. Read more on page 10.
In the beauty space, worry over ingredient transparency pushes cautious shoppers to demand science-backed claims from clean beauty brands. Analysts share what brands can do to allay consumer concerns on page 6.
Meanwhile, in Hong Kong, 14 newly approved hydrogen fuel projects are under scrutiny due to safety and transport challenges, raising doubts about their longterm viability. With hydrogen’s volatility still a concern, what is the true path forward? Find out on page 18.
In the Philippines, where MSMEs outnumber large corporations nearly 250 to 1, sustainability investments remain a challenge. ING Philippines Managing Director Jun Palanca examines how tax breaks could unlock green initiatives for small businesses. Read on page 16.
Finally, the ESGBusiness Awards 2024 highlights companies that are not only making commitments to sustainability but are delivering measurable results. From climate initiatives to ethical governance, meet this year’s standout leaders on pages 22 to 27.
In line with our dedication to sustainability, this magazine is printed on partially recycled paper.
ESGBusiness is a proud media partner and host of the following events:
MICA (P) 249/07/2011 No. 67
Tim Charlton
PLANTING SEEDS OF HOPE, TODAY AND TOMORROW.
At INVESTBANK, we believe in investing in a future we may not fully see, but one we know will thrive. Our commitment to green spaces and biodiversity conservation, recognized by the ESG Business Awards for “Green Space Transformation” and “Biodiversity Conservation”, reflects our dedication to building a stronger, healthier community for generations to come.
Join us in cultivating a brighter future. Investbank.jo
+962 6 500 1515
The true meaning of life is to plant a tree, under whose shade you do not expect to sit.
Accelerate Innovation to Connect and Secure the World
At Keysight, we inspire and empower innovators to bring world-changing technologies to life. Serving as a global innovation partner, we deliver market-leading design, emulation, and test solutions that help companies develop and deploy breakthroughs faster, with less risk, throughout the product life cycle. Our di erentiated technologies, measurement expertise, and tailored solutions are built from a foundation of co-innovation with industry ecosystem leaders. With Keysight, engineers gather insights sooner, to build and go to market with confidence.
Key products and services:
Product design and test software
Design, emulate, and test, leveraging the power of AI and digital twins. Test and measurement equipment
High-performance test and measurement equipment, such as oscilloscopes, signal analyzers, and signal generators.
Network visibility, emulation, and test solutions.
systems
Specific solutions for industries including communications, automotive, semiconductors, aerospace and defense, and others.
Equipment calibration and repair, technical support, education, consulting, and other services.
News from esgbusiness.com
Daily news from Asia
Reliance on coal casts doubt on Asia’s green energy goals
Asia’s pursuit of higher power consumption contradicts decarbonisation goals as it fosters dependence on fossil fuels. This becomes an even steeper climb as Asian markets run the risk of incurring financial losses with moves to retire high-emitting power plants ahead of their lifespan.
What sustainability trends will define the grocery market in South Korea?
South Korean consumers, in contrast to their generally modest interest in environmental responsibility across most retail sectors, are making an exception when it comes to groceries. This insight from Younghoon Kang of McKinsey Seoul shows a trend towards sustainability in their food shopping choices.
VC funding for decarbonisation crashed by 90%
Venture capitalists have become more cautious with their investments, viewing decarbonisation projects as less immediately profitable. This cautious approach is shown in the GlobalData report, which reveals a 90% drop in VC funding for decarbonisation projects in 2023, following a peak in 2022.
How much does hybrid working cut carbon emissions?
Hybrid working can reduce carbon emissions by up to 70% in the United Kingdom and 87% in the United States, a report found. The report by IWG and Arup linked this to the “dramatic” reduction in commuting. Businesses are increasingly looking for buildings with green leases to reduce emissions.
Temasek Foundation helps fund struggling sustainability innovations
With a failure rate as high as 30% amongst Singaporean startups, as shown in e27’s research, the government-backed Temasek Foundation is stepping in, offering potential capital injections. But before a startup can acquire this capital, it must meet the foundation’s specific criteria.
Despite growing recognition and concern surrounding the implications of climate change, the public exhibits an alarmingly low level of climate literacy, according to a report by Allianz SE. The survey showed that there is a high level of climate anxiety compared to climate literacy.
Low climate literacy signals flaw in communication
BUSINESSES RISK FINES AS NET-ZERO EFFORTS STALL
The race towards a net-zero economy is stalling, with most companies failing to develop concrete transition plans to curb their emissions, according to the EY Global Climate Action Barometer 2024.
The report, which surveyed 1,400 companies across 51 countries, revealed that only 41% have an official transition plan.
Whilst governments and global organisations ramp up pressure to meet the 2015 Paris Agreement targets, businesses across sectors remain hesitant to commit to concrete actions, the report said.
The US and China, the world’s top emitters, are particularly lagging, with only 32% and 8% of their companies having disclosed transition plans, respectively.
Reluctance to disclose
The slow adoption of transition plans is fuelled by a reluctance to disclose financial investments in climate action, the report added.
The report found only 4% of companies have shared details on operational expenditures related to climate initiatives, whilst just 17% have disclosed capital expenditures (capex) for decarbonisation. Despite mounting scientific evidence linking climate risk to economic instability, the majority of companies fail to integrate climaterelated financial risks into their reporting, the report said.
The report found that just 36% of companies referenced climaterelated financial impacts in their financial statements, and only 32% acknowledged at least one climate risk with a high financial impact.
Despite the slow global pace, some sectors and markets show improvement in climate disclosure and planning. The mining industry led sectoral improvements, increasing its disclosure quality by 7% year-on-year.
Brands turn to science to back clean beauty claims
Cosmetic brands looking to enter or expand in the so-called clean beauty space should build trust through science-backed claims and ingredient transparency, with just about every product claiming to use only natural ingredients, according to beautycare experts.
Consumers have also become more discerning and can easily spot fake assertions, they added.
“Compared with years ago, ingredient transparency has moved from a ‘good-to-have’ to a ‘musthave,’” Annie Yao, head of Growth at Flywheel Southeast Asia, told ESGBusiness in an exclusive interview.
New standards
Yao expects cosmetics companies to continue shifting to clean beauty—a movement in the beauty industry that focuses on using products made with safe, nontoxic, and environment-friendly ingredients— as the new standard as consumers demand more natural products.
The global clean beauty market size was estimated at $8.25b in 2023 and is projected to grow 14.8% annually from
2024 to 2030, according to Grand View Research. The market growth is driven by increasing consumer concerns about the safety of cosmetic products, environmental impact, and potentially harmful ingredients in beauty and personal care products.
Art of storytelling
Yao noted that aside from offering clean formulations, brands should also master the art of storytelling. Brands that focus on ingredient origin and efficacy engagingly are more likely to win sales, she told the magazine.
“The launches in the beauty sector will be gearing towards the cleaning end,” she said. “There will probably be few ingredients and more discussions around the origins of these ingredients, as well as their efficacy.”
According to Yao, it might be interesting to watch the falling cost of cosmetic production in the past two to three years from a disruption perspective. “This is driven especially by markets like China, where you have probably overcapacity issues for skincare production. As a result, we see the emergence of the newer generation of clean beauty products.”
Compared with years ago, ingredient transparency has moved from a ‘good-to-have’ to a ‘must-have’
Consumers in the Asia-Pacific region are willing to pay 10% to 20% more for products that they care about, “and those would be having natural and premium ingredients,” said Egle Tekutyte, innovation consultant at Euromonitor International.
Kenneth Carsula, a manager at Singapore-based consulting firm YCP Interactive Solutions Division, said clean beauty has made consumers become more discerning about the ingredients they apply to their skin.
“It’s also very important these days to build your credibility and credentials around the space of clean beauty by actually tapping the right resources,” he said. These include scientists or dermatologists “who speak the language that your consumers would understand but also have the breadth of experience about this industry.”
Ingredient transparency
Carsula said social media helps consumers research ingredients instantly, making transparency vital for brands. JeeSeon Park, L’Oréal North Asia’s chief sustainability officer, said the company offers an online ingredient dictionary for detailed information.
The global clean beauty market size was estimated at $8.25b in 2023
RETAIL
Kenneth Carsula
Annie Yao
Bank Mandiri lets customers keep track of personal emissions
Jakarta-based Bank Mandiri now allows users of its superapp, Livin’ by Mandiri, to calculate their carbon footprint from daily activities such as electricity use and transportation, amidst a global push to cut greenhouse gas emissions.
The superapp’s “Livin’ Planet” feature also suggests practical ways to offset harmful environmental practices, such as by planting trees.
“Through this feature, customers can independently measure and understand the impact of their activities on the environment,” Darmawan Junaidi, president-
By 2027, half (50%) of IT buyers in Asia-Pacific excluding Japan (APEJ) are expected to only engage with vendors that follow responsible artificial intelligence (AI) standards aligned with environmental, social, and governance (ESG) criteria per sustainable procurement requirements, according to International Data Corporation (IDC)’s report.
This shift in the tech-buyer mindset will emerge from organisations moving from the initial “scramble” of generative AI experimentation—currently at a 62% success rate—to a full-scale integration of AI across enterprises.
Additionally, IDC also predicts that by 2028, 50% of APAC organisations will exclusively partner with IT vendors that offer robust services or an extensive software partner ecosystem due to the
director at Indonesia’s biggest bank by assets, said in a statement.
ESG adviser
Customers can participate in the bank’s tree-planting programme, which is being carried out by its conservation partner, Jejakin, using funds from app users.
“Through this app, customers can access reports that enable them to monitor their contributions to the environmental preservation programme, making their involvement more transparent,” Darmawan said.
He said the bank acts as an
ESG (environmental, social, and governance) adviser for customers transitioning to a low-carbon economy, partly through the Livin’ Planet feature, and provides financing for climate-based programmes such as conservation and renewable energy projects.
Green financing
Bank Mandiri had $17.7b (Rp285t) worth of sustainable loans as of September 2024, with green financing continuing to increase, Darmawan said.
Indonesia, which has the thirdlargest tropical forest cover in the world and the largest mangrove ecosystem with over 3.36 million hectares, is a focal point in the world’s emission reduction efforts.
These make Southeast Asia’s most populous nation home to the secondbiggest nature-based solutions in the world, with the potential to absorb 1.5 Gigatons (Gt) of carbon dioxide yearly.
Our big dream is to make our customers sustainability champions who can make a tangible positive impact on the environment
growing complexity of carbon accounting and supply chain decarbonisation.
IDC has outlined key predictions to help businesses in the APAC region become AI-fuelled sustainable businesses.
By 2027, 50% of enterprises in APEJ will implement sustainable AI frameworks, using data-driven decisions to scale AI operations across data centres whilst meeting decarbonisation goals.
By 2028, 75% of customers in APEJ will expect carbon emissions data across the entire lifecycle of IT assets—from building, operation, and disposition—to assist with their overall corporate sustainable goals.
By 2029, in half of APEJ organisations, the chief ethics or sustainability officer will have joined the central AI data governance group or the AI centre of excellence, IDC’s report said.
Bank Mandiri is supporting the country’s key role in cutting emissions, Darmawan said. “Bank Mandiri is committed to not only providing financing but also becoming a transformation partner for our customers by helping them transition to more sustainable business practices,” he said.
“Our big dream is to make our customers sustainability champions who can make a tangible positive impact on the environment, whilst simultaneously gaining a competitive advantage,” he added.
HALF OF APAC COMPANIES SEEN TYING UP ONLY WITH ESG-ALIGNED AI VENDORS BY 2027
Bank Mandiri had $17.7b (Rp285t) worth of sustainable loans as of September 2024
Darmawan Junaidi
FINANCIAL TECHNOLOGY
SPACE WATCH
Cheng Chung Design’s ‘decaffeinated’ workspaces boost employee wellness
The Chinese interior designer’s headquarters was designed to resemble a home for comfort.
Completed in just 75 days, Cheng Chung Design’s (CCD) new Singapore headquarters embodies its philosophy of blending artistry with comfort. The office’s “decaffeinated” concept creates a calm, home-like atmosphere, breaking away from the stereotypical clean or concrete architectural offices.
“When you walk into the office, you feel calm, as if you're in your own home. Our founder didn’t want the stereotypical architectural office, which is often very clean or concrete; he wanted it to be lifestyle-driven,” Aldwin Ong, senior vice president at CCD, told ESGBusiness.
Its founder, Joe Cheng, loves cars, and many office elements, sculptures, and accessories reflect his lifestyle.
“We have a landscape gallery, where we showcase nature. We also have the galley, which is essentially where people gather around to eat,” Ong added.
The headquarters also features a book bar with an extensive wine collection surrounded by books, along with an interactive TV used in meetings. Designers can also work here. “So it's not just spaces that you see in your home; they have been converted to suit our needs.”
To reflect Singapore’s reputation as a garden city, CCD incorporated landscape designs and cultural elements inspired by Peranakan heritage and colonial-era shophouses.
“We want to emphasise that landscape is art, which is our DNA,” Ong told the magazine.
1 Work-life balance is thoughtfully integrated into the design, with the carefully curated Galley connected to the workspace.
2 The Art Gallery reception featuring a curated art display and an eclectic mix of furniture styles, creating a striking yet welcoming atmosphere.
3 A fusion of lifestyle appreciation and design creativity is showcased on the Wall of Fame, presenting unique interpretations of our mood boards.
4 Ivory screens provide both daylight transparency and privacy, framing picturesque views of Singapore's urban landscape.
5 Pockets of lounge spaces provide cosy discussion spots for designers, featuring a harmonious blend of art, books, and plants.
6 The Galley is thoughtfully designed with a complete line of luxe components, featuring state-of-the-art induction cookware.
Aldwin Ong
Indosat converts clients’ waste into mobile credits
Customers claim credits by dropping used plastic bottles into reverse vending machines.
Indosat Ooredoo Hutchison has collected 23,000 plastic bottles from customers under a reward programme that converts their waste into mobile load credits.
The Indonesian telecommunication company’s waste-for-credit initiative, which started in 2022, has helped collect 437 kilos of plastic waste, reducing carbon emissions by 1.5 metric tonnes.
“For us, this initiative is about more than just collecting plastic — it’s about empowering our customers,” Vikram Sinha, president-director and CEO at Indosat, said in an exclusive interview with ESGBusiness
“We wanted to give something back to the communities we serve whilst encouraging eco-friendly behaviour. By turning waste into a resource, we’re helping people stay connected and making a tangible impact on the environment,” he added.
Vending machines for plastic bottles
The programme has rewarded 1,032 Indosat clients who have collectively received $890 (Rp14m) worth of mobile credits in exchange for their plastic waste.
“In underserved areas, the economic benefits of [the programme] are clear,” Vikram said. “It’s an innovative solution to both environmental and economic challenges. We are proud to help these communities reduce their communication costs whilst empowering them to contribute to a more sustainable future.”
At the core of the programme is the use of reverse vending machines (RVM) where people can deposit their plastic bottles. Every exchange of one plastic bottle can get IM3 and Tri credit of ten thousand Rupiah through the PlasticPay app, which can be used directly to buy data quota, telephone, SMS and other services such as music and movie streaming applications.
The first machine was launched in Bogor, and since then, it has expanded to 10 key locations across Indonesia, including Semarang, Medan, Makassar, and Mandalika, where high-profile events like MotoGP Mandalika 2024 have highlighted its importance.
“The response from our customers has been overwhelming,” Vikram said. “The simplicity and effectiveness of the RVM technology have made it easy for people to participate. It’s not just about technology; it’s about creating a seamless experience where customers feel they are part of something bigger, something that makes a difference,” he added.
The donated plastic bottles are then recycled into backpacks, totes, office bags, and travel pouches created by partner micro, small, and medium-sized enterprises (MSMEs), according to PlasticPay.
Vikram said they are tracking every milestone of the programme — from the amount of plastics collected to the reduction in carbon emissions. “These numbers tell a story of how small, individual actions can lead to significant environmental and social change. The success of this programme is a testament to the power of collective effort,” according to the CEO.
He said Indosat plans to roll out more reverse vending machines in more cities across the country under the programme, which is a critical part of its long-term ESG (environmental, social and governance) strategy — one that will continue to evolve as new technologies and community needs emerge.
By turning waste into a resource, we’re helping people stay connected and making a tangible impact on the environment
The programme is also expected to help the government reduce the amount of waste that has not been managed properly, which is 34.29% of the total national waste production, based on data from the Ministry of Environment and Forestry in 2022.
“Our mission is clear,” Vikram told ESGBusiness. “To empower, to innovate, and to create value — not just for our shareholders, but for our customers and the planet. We are proud of what we’ve achieved so far, but there’s so much more to come.”
Vikram Sinha, president-director and CEO at Indosat
INDONESIA
AFFIN
BizSolar/BizSolar-i
To finance the purchase and installation of Solar Panel Photovoltaic System on your business premises.
Financing up to RM5,000,000
Financing tenure up to 10 years
Solar Panel Vendors authorised by SEDA
Ryde eyes more tie-ups as part of ‘green’ push
The Singaporean ride-hailing company is set to sign deals with two more EV companies.
Ryde Group Ltd. is partnering with banks, electric vehicle (EV) players, and tech firms to fast-track its push to make its drivers and customers more sustainable and safe.
The New York-listed Singaporean ride-hailing and carpooling company, which operates the Ryde app, is close to finalising tie-ups with two EV companies, Ryde CEO Terence Zou told ESGBusiness.
Ryde is partnering with EV makers, leasing companies, and EV charging companies to achieve targets under its RydeGreen programme, launched in December 2024, he said. The company has partnered with Singapore Electric Vehicles (SEV), the largest EV leasing company in the citystate, according to Zou.
Ryde, which also offers delivery services, targets 600 more EVs by 2025 and 1,200 by 2027. It has pledged more than $747,442 (S$1m) in “green bonuses” for driver-partners leasing EVs through SEV to encourage adoption.
This initiative, Zou said, not only promotes EV adoption but also ensures driver-partners have access to affordable rental options that support their financial stability and operational efficiency.
As part of the Ryde programme, the company is also working to expand access to Singapore’s growing EV charging network, he added.
Ryde’s sustainability push aligns with Singapore’s national green plan and consumer preference, Zou said, citing a YouGov report showing that 58% of Singaporeans prefer supporting sustainable brands.
“The average vehicle occupancy rate is 1.7. With carpooling, we can increase that metric and thereby reduce the number of cars or make more efficient use of cars on the roads,” he told the magazine.
Zou expects governments and companies globally to phase out fossil-fuel cars in favour of EVs and hybrid fleets, driving Ryde’s long-term goal to become the most sustainable ridehailing platform in Singapore and beyond.
Support for driver-partners
As part of its environmental, social, and governance (ESG) initiatives, Ryde is also boosting support for its driverpartners by providing insurance.
Ryde partnered with Singapore Life Ltd. (Singlife) in August to offer insurance plans to its drivers, a month before the passage of the Platform Workers bill, which guarantees financial compensation for gig workers in case of workplace injuries. The accident insurance is also offered to Ryde passengers for free.
Ryde’s other safety initiatives for passengers include 3D secure authentication for better credit card and fraud detection, along with an option for passengers to report
We see safety as a core pillar of our ride-hailing experience
incidents and accidents. “We see safety as a core pillar of our ride-hailing experience and have made numerous improvements in this area,” Zou said.
The company has been working with financial advisory firms to offer insurance and financial products to its driver-partners, the CEO said, adding that they would announce a new insurance partnership in March.
Ryde has also worked with tech firms to improve artificial intelligence (AI)-powered ride-matching and predictive analytics to enhance rider and driver experience, according to Zou.
“At Ryde, we are positioning ourselves at the forefront of this transformation by investing in sustainable mobility, forging strategic partnerships, and ensuring our technology drives efficiency in urban transport,” Zou said.
Beyond its corporate partnerships, the ride-hailing company is also considering acquisitions to scale its operations, expand to new markets, and solidify its position in the mobility and tech ecosystem.
Ryde is strengthening partnerships with like-minded business to business companies to deliver customised mobility solutions and accelerate business expansion, Zou said.
“We remain committed to forging impactful, long-term partnerships that drive innovation, unlock new revenue streams, and create value across the ride-hailing ecosystem,” Zou said. “We’ll continue to invest in manpower, service, and infrastructure, including the use of AI to improve the entire ride-hailing experience.”
Terence Zou, CEO at Ryde
SINGAPORE
TECH WATCH: DISASTER RISK MANAGEMENT
Stellerus tracks typhoon threats to protect key infrastructure
The Hong Kong startup offers a fast and accurate early warning system for natural disasters.
Hong Kong startup Stellerus Technology is helping the government and industries manage high-value assets against natural disasters and climate risks, including typhoons, using proprietary data and algorithms spanning climate risk, hazard, and carbon management.
The company, which offers a suite of climate tech solutions, is seeking to raise $1.28m to $2.57m (HK$10mHK$20m) to fund its expansion in Southeast Asia, Jeffery Xu, CTO at Stellerus, told ESGBusiness. They also plan to expand to the Middle East and are now in talks for tie-ups with companies in Central Asia.
The startup uses data from its satellite to enhance proprietary algorithms and artificial intelligence (AI) models, developed from more than 20 years of research by Stellerus chairwoman Hui Su and chief strategist Limin Zhang
Xu co-founded Stellerus in 2023 with Su and Zhang, both chair professors at Hong Kong University of Science and Technology (HKUST). Su is an expert in remote sensing, meteorological and climate modelling, and weather forecasting, whilst Zhang is an expert on hazards such as landslides and floods.
Stellerus led the launch mission of a satellite at the HKUST, which gives them a holistic view of “hazard situations” like inundations caused by rainstorms. The satellite, with a spatial resolution of 0.5 metre, can capture clear images on the ground.
The satellite’s surface working area spans 150 kilometres, allowing it to cover and capture the entire Hong Kong region and beyond, including areas like Shenzhen, in a single pass. This lets Stellerus assess hazard data during heavy rainstorms and their impact on buildings afterwards.
The satellite data also allows Stellerus to measure a typhoon’s intensity and track where it is headed even before it hits the city.
Xu noted that when a typhoon is about to hit Hong Kong, the government institution sends cyclone hunters — aircrews that fly over tropical cyclones to gather weather data. “What we can do better is utilise satellite data to measure the typhoon even before it hits. We use the satellite to see the typhoon when it’s still in the South China Sea,” he added.
Xu said the satellite in HKUST is part of a “constellation” of more than 100 remote-sensing satellites. With data from these satellites, Xu said Stellerus could better assess hazard
What we can do better is utilise satellite data to measure the typhoon even before it hits
intensity and its potential impacts, particularly on infrastructure. With AI, the startup can also speed up the process of analysing data before a disaster occurs.
Diverse uses
Stellerus’ main clients include governments, electricity, transportation and insurance companies in Hong Kong, Mainland China, and some countries part of the Belt and Road.
Using the startup’s climate technology, governments can identify which buildings or areas are likely to be flooded during a typhoon. Stellerus can also assess infrastructure and the damage from a rainstorm. Insurance companies, meanwhile, use Stellerus’ service to price premiums. “They need to understand what price they need to put on these assets. To do that, they need to understand what are the risks of these assets when faced with those hazards,” Xu said.
Insurers could also warn their clients so they could mitigate potential damage, “ultimately reducing payouts to clients,” the executive added.
Their startup’s tech is not limited to assessing immediate events, such as the impact of a single typhoon, but also extends to the analysis of longterm climate risks.
Xu said Stellerus could also utilise the climate technology to help listed companies comply with regulations, including the need to disclose their climate risks starting in the next fiscal year, according to Xu.
“For example, we can project what might happen over three to five years, helping clients include these risks in their climate risk disclosures,” Xu said.
Stellerus aims to expand their solutions to climate mitigations, especially greenhouse gas monitoring and verification.
“We want to help companies better manage the root causes of climate change, such as carbon dioxide emissions,” he added.
HONG KONG
Jeffery Xu
Stellerus led the satellite launch mission at HKUST (Photo from Stellerus)
Certified Capital Market Professional (CCMP) in Sustainable and Responsible Investment
INTERVIEW
More tax perks could make green business viable for 1.1 million SMEs
SMEs need the same regulatory support as big firms after the central bank eased green loan rules in 2023.
The Philippines should offer more incentives to small businesses, which make up 99.6% of all companies, to spur them to become more environmentally sustainable, according to ING Philippines’ country head.
“I think more than the stick, it’s the carrot that will be more helpful, at least at this early stage,” Jun Palanca, managing director and Philippine country head for ING, told ESGBusiness in an interview.
Giving them more tax perks would help them transition to clean energy and other sustainable practices, he pointed out.
The Philippine central bank in 2023 lowered the reserve requirements for loans to sustainable projects and green bonds. Small and medium enterprises (SME) need the same level of support from the corporate regulator, Palanca said.
Benefits in going green
A 2023 McKinsey & Co. study of publicly listed companies found that those that outperformed on profit, growth and environmental, social and governance (ESG) principles saw greater revenue increases than companies that only outperformed on profit and growth.
There are numerous incentives for SMEs and mid-sized enterprises to embed sustainability into their corporate vision and industrial operations, according to the World Economic Forum, noting that environmental sustainability and business performance can grow hand in hand.
“By adopting sustainable practices, SMEs and mid-sized companies cannot only reduce environmental impact but also enhance operational efficiency, cut costs, attract talent and unlock new growth opportunities,” it said.
At more than 1.1 million, micro, small, and medium enterprises in the Southeast Asian nation can be an important target for green financing. In contrast, there were only about 4,500 big corporations in the Philippines, according to 2022 data from the country’s Department of Trade and Industry (DTI).
ING recently tripled its global renewable power financing commitment to $7.8b (€7.5b) annually by 2025, and is seeking to mobilise $156.34 (€150b) annually by 2027 toward financing sustainable business practices.
This year, the Dutch banking group expects to hit its target of $4.58b (€4.4b) in renewable financing. It has also stopped new general financing for “pure-play upstream oil and gas companies” involved in new field developments, effective September 2024.
The Philippine banking industry has been actively financing sustainable activities, but “it’s never enough,” Palanca told the magazine. “There’s a lot more that can and should be done,” he added, noting that lenders need to be more transparent and educate their clients about the wisdom of going green.
“We all need to be collaborating more too, in terms of innovating, helping our clients, and creating products that will be more helpful to them,” he added.
Moving away from oil and gas remains a challenge amidst
We all need to be collaborating more too, in terms of innovating, helping our clients, and creating products
questions about energy security and high power costs.
Under its transition plan, the Philippines is expected to still rely heavily on fuel for its energy needs. The 2030-2050 Philippine Energy Plan only expects 35% of energy to come from renewable sources by 2030, and just 50% by 2040.
‘Not as clear yet’
“You can suddenly say, ‘OK, let’s shut down all the coalfired power plants,’ but then you’ll have blackouts all over,” Palanca said. The transition to clean energy costs a lot, even for big corporations, he added.
“Moving from being a pure coal-fired company to renewable energy is a big investment,” he said. “So we need to be thinking about how to support that transition, or even to expedite it to an extent.”
ING Philippines has worked as a sustainability coordinator for sustainable bonds, including one for Arthaland Corp., which puts up buildings powered by renewable sources. It also lends to smaller financial institutions that finance small firms.
This ensures that SMEs, the agriculture sector, women and other entrepreneurs get the funding support, Palanca said, adding that ING also provides advisory services to its clients.
Palanca cited an example in Türkiye, where they provided financing to a local bank that in turn financed SMEs led by women entrepreneurs and small farmers. In the Philippines, ING financed a company’s COVID-19 relief programme at the height of the pandemic, allowing it to expand its hospital facilities instead of retrenching staff, he added.
Jun Palanca, managing director and Philippine country head for ING
SCAN FOR FULL STORY
PHILIPPINES
Safety concerns cloud Hong Kong’s ‘green’ transport ambitions
Hydrogen fuel is volatile, highly flammable and expensive, an energy expert says.
Hong Kong may need to rethink the use of hydrogen fuel in its transport sector given its inability to produce it on a large scale, and safety risks tied with the alternative fuel, according to an energy analyst.
"Hydrogen is not like any other fuel that's currently being used in Hong Kong,” Grant Hauber, strategic energy finance adviser for Asia at the Institute for Energy Economics and Financial Analysis (IEEFA), told ESGBusiness in an interview.
“It is highly volatile, it is invisible, it is odourless and it is highly flammable. It's not something that can be readily substituted for other fuels that are out there, simply because of these safety aspects,” he said.
He noted that hydrogen must be delivered to all distribution points in Hong Kong, which is a big problem since hydrogen does not like to be transported. “It's a highly energyintensive process to get it [to the distribution points], therefore it’s costly and there's a high propensity for leakage and loss along the way.”
Implementation plans and risks
There are 14 trials approved for hydrogen use, including five hydrogen fuel cell (HFC) double-decker buses operated by Citybus and three HFC street-washing vehicles for the Food and Environmental Hygiene Department, Hong Kong’s Environment and Ecology Bureau told the publication.
There is also a hydrogen-powered light rail vehicle in Tuen Mun running as a non-revenue train for the Mass Transit Railway Corp. (MTRC), and two HFC refuse collection vehicles for Waihong Environmental Services Ltd.
Hong Kong, however, has a robust history of managing risks associated with hazardous materials like liquefied petroleum gas and dangerous goods, said Thomas Lo, market area manager for HK and Macau at Energy Systems, DNV, in a separate interview. He said recent risk studies for
It's a highly energyintensive process to get it, therefore it’s costly and there's a high propensity for leakage and loss along the way
hydrogen fuel cell buses conducted by the DNV and the Electrical and Mechanical Services Department position Hong Kong as “a leader in risk management for HFC buses.”
Still, Hauber said hydrogen’s tendency for higher energy losses and lower efficiency makes its use for transportation a lower-value application. “The ideal situation is that you use the hydrogen where you make it, so you don't have to transport it.”
For bringing large quantities of hydrogen into Hong Kong, he said hydrogen could be transported either by piping and liquefying it, or by binding it to ammonia, then transporting and breaking down the ammonia, which leads to a 75% loss of the energy used to make it.
Its application in buses and trains is a “fantasy use” because it is uncompetitive, compared to, say, electrifying those vehicles, he added.
Apart from safety issues, it would also be hard for Hong Kong to produce enough hydrogen, Hauber said.
Hong Kong has Towngas, which supplies gas with a 50% hydrogen content, which Lo said could be leveraged for hydrogen distribution and use. Towngas' infrastructure, however, must be “assessed for safety and feasibility when conveying hydrogen
blends and 100% hydrogen,” he added. Hauber added that hydrogen produced by Towngas is carbonintensive. “To replace current carbon-intensive uses with hydrogen would require a large-scale import of hydrogen.”
Lo, in his interview, also said Hong Kong must import much of its hydrogen. “It is not naturally endowed with ample resources suitable for renewable generation required to produce renewable electricity and, in turn, green hydrogen and derivative products.”
Production scale
Hauber noted that even with imports from Mainland China, the world’s biggest green hydrogen producer, large-scale hydrogen use in Hong Kong is still “a very long way off.” Sinopec’s Kuqa petrochemical refinery in Xinjiang is currently the largest green hydrogen producer, but the plant only yields 20,000 tonnes of hydrogen yearly and needs 300 megawatts of renewable energy inputs either from wind or solar. All of that output is for the refinery’s own use.
Achieving a production scale of a million tonnes would need gigawatts of renewable energy from farms that will occupy thousands of hectares of land.
There are trials approved for hydrogen use, including five double-decker buses operated by Citybus
HONG KONG
Grant Hauber
Transforming supply chains through inclusivity
Sustainable growth requires commitment to ethical production where responsible practices are upheld consistently, from sourcing to manufacturing. This approach is important in agriculture, where sustainability means embracing transparency, inclusivity, and empowerment.
Transparency across the supply chain
The palm oil industry particularly faces challenges with its fragmented and complex supply chain. Traceability is the genesis and foundation of the sustainability journey, especially in agriculture. However, tracing the origins of vegetable oil can be difficult and can obscure environmental and social issues. By implementing strong sustainability policies, forming strategic partnerships, and creating anchor programmes, Apical strives to build a transparent, traceable, and sustainable supply chain globally.
Empowering smallholder success
Smallholders account for over 40% of palm oil production in Indonesia but often face limitations in resources and expertise to produce sustainably. By sharing technical knowledge, improving their yields, and helping them obtain industry certifications, Apical can enhance the livelihoods and income of smallholders through better productivity and premiums from certifications. The SMILE Programme (Smallholder Inclusion for Better Livelihood & Empowerment) is one such initiative. Through collaboration with Asian Agri, Apical’s supply partner, and Kao, a Japan-based manufacturer of personal care
and household products, cosmetics, and specialty chemicals, SMILE aims to empower 5,000 smallholders and enhance their yields. This enables them to gain international certifications and secure premiums for certified palm oil sales. To date, more than 1,300 independent smallholders have achieved certification under SMILE.
Advancing long-term sustainability
Apical2030 is the company’s roadmap for achieving a sustainable agricultural industry. With a focus on social, environmental, and business impacts, Apical2030 includes 10 time-bound commitments across four strategic pillars: Transformative Partnerships, Climate Action, Green Innovation, and Inclusive Progress. These goals, aligned with the United Nations Sustainable Development Goals (UNSDGs), aim to address current challenges and drive a sustainable future.
At Apical, they are not just envisioning a sustainable future — they are building it, one step at a time.
Apical’s long-term sustainablity roadmap is structured around four strategic pillars. It is designed to create a positive impact across social, environmental and business aspects.
Transformative Partnerships
Collaborating with stakeholders along the supply chain to spur positive changes relating to NDPE compliance, traceability and conservation.
Discover how Apical is driving meaningful changes.
Taking urgent action to combat climate change and its impacts.
Leveraging innovation for increasing sustainable operations.
Action
Spreading SMILE(s): Empowering smallholders for brighter futures
ANALYSIS: POWER
Clean power must scale as Asia slashes coal funding
Weaning the region off coal is a challenge, with rising electricity requirements.
The pipeline of coal projects in Asia — home to 82% of the world’s coal generation — has been shrinking as loans to the sector dry up amidst a global push for renewable energy (RE), but RE investors need to be assured of profitability to ensure the rollout of clean plants, analysts said.
Asian demand for electricity has been rising 5% a year, which makes it challenging for fastgrowing economies in the region to reduce their reliance on fossil fuels, according to energy think tank Ember. That is why meeting electricity demand growth with clean power is key, according to their 2024 report.
“Coal financing is depleting for sure, but more stringent measures should be taken to ensure the funding goes towards renewables,” Dinita Setyawati, a senior electricity policy analyst for South East Asia at Ember, told ESGBusiness.
Current energy mix
Asia started its electricity transition later than other regions but it is catching up fast, Ember said. The share of solar and wind in Asia is now almost the same as the world average, and the share of renewables in Asia’s electricity mix reached 27% last year.
“Two of the world’s top five absolute generators of wind and solar are in Asia, and the share of wind and solar is growing in Asian countries’ electricity mixes,” the energy think tank added.
Ghee Peh, an energy finance specialist for Asian coal markets at the Institute for Energy Economics and Financial Analysis (IEEFA), said coal companies have turned to bonds as more banks shun their loan applications.
About 200 banks have set policies to exit coal financing, he said, citing an IEEFA report last year. In Asia, the number of financial institutions adopting exclusion policies rose
from 10 between 2013 and April 2019 to 41 three years later.
Whilst most Asian countries have set long-term energy transition targets, many lack immediate plans for rapid transformations this decade, the specialist said.
Dinita noted that Vietnam relies mainly on domestic financing for its energy projects, including coal. A key development was when the government extended the feed-in tariff period — the time a utility guarantees to buy electricity from a renewable energy generator at a fixed price — for solar energy.
Anti-competitive policies
This encouraged domestic investors to embark on larger-scale solar developments. However, these projects carry risks, such as potential revenue shortfalls, she pointed out. “There are also no measures to offset any of these reductions and financial mechanisms to address these risks in some of the developing markets in Southeast Asia,” she added.
There is also a lack of private sector interest to invest in the energy transition in the absence of
a strong ecosystem and compliance standards, Seytawati said. If fossil fuel revenue streams are cut, securing replacement revenue from RE becomes challenging, especially since the supply chain is not yet developed, she added.
She said countries in the region should boost bilateral ties to encourage more capital investment in renewable energy. “For example, if Indonesia is going to export nickel to a certain country, then the receiving countries need to apply stringent measures,” she said.
“The nickel processing has to be done with renewables. Specific things like that could help the national government realise that renewables are really in demand for the industries to make their economy grow,” she added.
Dinita expects Singapore to lead the shift in RE financing given its push for energy imports.
Singapore recently granted conditional approvals to Singa Renewables Pte Ltd, a joint venture between TotalEnergies and RGE, and Shell Eastern Trading (Pte.) Ltd, in partnership with Vena Energy, to import 1.4 gigawatts of low-carbon electricity from Indonesia.
Peh said countries like Indonesia should re-examine policies that favour coal-fired power, such as the domestic market obligation, which mandates a percentage of the country’s coal production to be sold domestically.
Demand for electricity has been rising 5% a year
Ghee Peh
Dinita Setyawati
KBZ Bank earns Digital Inclusion Award - Myanmar at ESGBusiness Awards 2024
The bank was recognised for its outstanding contributions to bridging the digital divide in Myanmar.
KBZ Bank’s leadership in promoting digital inclusion has earned it the Digital Inclusion Award - Myanmar at the ESGBusiness Awards 2024.
At the heart of KBZ Bank’s strategy is its vision to bridge the digital divide by providing accessible and affordable digital banking services. This effort has been driven by the bank’s digital banking ecosystem, which includes its online
banking platforms— mbanking and ibanking— as well as its mobile wallet platform, KBZPay. With over 16 million downloads, the platform now connects 50% of Myanmar’s adult population to the digital economy.
Innovative approach
KBZ Bank has introduced several features aimed at fostering entrepreneurship and supporting small and medium-sized enterprises (SMEs). One feature is KBZPay Market, an e-commerce platform that offers a mobile shopping experience. This platform has created new opportunities for SME merchants, including 30%
women-led businesses, by connecting them with new customer segments.
Future outlook
KBZ Bank conducts workshops to educate users about digital banking, safe practices, and cybersecurity. It has conducted financial literacy workshops in universities, benefitting over 10,000 students from 29 institutions. KBZ Bank has also partnered with NGOs and vocational training schools to bring financial education to communities throughout Myanmar.
As KBZ Bank continues to innovate and expand its digital offerings, it remains committed to achieving 100% financial inclusion in Myanmar. By empowering communities with access to digital financial services, KBZ Bank is helping drive positive change and create a more equitable future for all.
KBZ Bank hosts second KBZPay Ecosystem Summit, showcasing innovative mobile wallet & its in-app e-commerce capabilities for businesses to achieve growth
EVENT: ESGBUSINESS AWARDS
ESGBusiness Awards 2024 celebrates outstanding sustainable companies
The ESGBusiness Awards has returned to proudly recognise companies leading the charge towards a more sustainable future.
The prestigious awards programme, lauding organisations that have demonstrated excellent commitment to environmental, social, and governance (ESG) practices, celebrated for their initiatives during an awards dinner at the Marina Bay Sands Expo and Convention Center on 24 September 2024 with over 200 attendees.
The ESGBusiness Awards shines a spotlight on organisations that actively work towards sustainable development goals and acknowledges those who made a significant impact in shaping a better world through climate change mitigation, resource conservation, social responsibility, and ethical governance.
ESGBUSINESSAWARDS 2024WINNERS
Active Fire Protection Systems Pte. Ltd.
• 4IR (Fourth Industrial Revolution) Programme Award - Singapore
• Social Welfare Award - Singapore
AETOS Holdings
• Workplace Wellness Programme Award - Singapore
Affin Bank Berhad
• Green Building Award - Malaysia
Agthia Group PJSC
• Circular Economy Award - UAE
Alliance Bank Malaysia Berhad
• Green Packaging Solution Award - Malaysia
• Cross-Sector Collaboration Award - Malaysia
Amana Takaful Insurance
• Digital Inclusion Award - Sri Lanka
Apical Group
• Sustainable Supply Chain Partnership Award - Malaysia
Athena
• Mental Health Awareness Award - Philippines
Bank of the Philippine Islands
• Excellence Award - Philippines for Sustainable Finance
Bank Sinopac
• Social Welfare Award - Taiwan
BDO Unibank
• Social Inclusion and Equal Opportunities Award - Philippines
Central Food Retail
• Waste Reduction Award - Thailand
Chang Hwa Bank
• Carbon Disclosure Award - Taiwan
CIMB Bank
• Smart City Award - Malaysia
Converge ICT Solutions,Inc.
• Inclusion and Diversity Award - Philippines
CPG Consultants Pte Ltd
• Green Building Award - Singapore
The esteemed panel of judges for the 2024 event are Dr Niven Huang, Managing Director, KPMG Sustainability Consulting Co., Ltd., Sammie Leung, Partner, Regional ESG Services Asia Pacific, PwC; Arina Kok, Partner, EY APAC Decarbonization Leader and Malaysia Climate Change and Sustainability Services (CCaSS) Leader, Ernst & Young Consulting Sdn Bhd; Kate Hart, Asia Pacific Co-Lead, Sustainability Partner, Kearney Asia-Pacific; and Michelle Gunawan, Partner, Energy and Climate & Sustainability Practice, Boston Consulting Group.
Congratulations to all the winners for your remarkable achievements in sustainable and responsible business practices!
CPG Consultants Pte Ltd
• Circular Economy Award - Singapore
Cyberview
• Collaborative Partnership Award - Malaysia
Dynamik Technologies
• Education Equality and Access Award - Brunei
Eupe Corporation Berhad
• Healthy Lifestyle Product Award - Malaysia
ExlService Holdings, Inc.
• Energy Efficiency Retrofit Programme Award - Philippines
Federal Express
• Sustainable Transportation Award - Malaysia
• Net Zero Award - Logistics
FPT Software
• Job Creation Award - Vietnam
GCash
• Climate Advocacy and Education Award - Philippines
• Gender Equality and Women Empowerment Award - Philippines
Great Eastern Takaful Berhad
• Initiative Award - Malaysia for Upcycling
Haymarket Media Limited
• Carbon Disclosure Award - Hong Kong
• Gender Equality and Women Empowerment Award - Hong Kong
HH Global
• Sustainable Supply Chain Award - Hong Kong
• Sustainable Supply Chain Partnership Award - Hong Kong
Hilton Bahrain
• Industrial Energy Efficiency Award - Bahrain
• Waste Management Award - Bahrain
HK Express
• Circular Economy Award - Hong Kong
• Climate Advocacy and Education Award - Hong Kong
HOLDAL Group
• Mental Health Awareness Award - Iraq
Infrastructure Development Company Limited (IDCOL)
• Renewable Energy Adoption Award - Bangladesh
Insular Life
• Good Governance Award - Philippines
• Workplace Wellness Programme Award - Philippines
INVESTBANK
• Green Spaces Award (Parks, Garden, Urban Forests) - Jordan
• Biodiversity Conservation Award - Jordan
Jollibee Foods Corporation
• Entrepreneurship Development Programme Award - Philippines
• Social Welfare Award - Philippines
Jones Lang Lasalle
• Renewable Energy Adoption Award - Philippines
• Cross-Sector Collaboration Award - Philippines
JS Bank
• Workplace Wellness Programme Award - Pakistan
JSCB Uzpromstroybank
• Renewable Energy Adoption Award - Uzbekistan
• Industrial Energy Efficiency Award - Uzbekistan
KBZ Bank
• Digital Inclusion Award - Myanmar
Kerry
• Initiative Award - Malaysia for Environmental Impact
Keysight Technologies Malaysia Sdn. Bhd.
• Renewable Energy Adoption Award - Malaysia
KGI Life Insurance
• Education Equality and Access Award - Taiwan
• Inclusion and Diversity Award - Taiwan
KROHNE
• Sustainable Transportation Infrastructure Award - UAE
Mannings, DFI Retail Group
• Workplace Wellness Programme Award - Hong Kong
• Healthcare Services Award - Hong Kong
Megaworld Corporation
• Net Zero Award - Real Estate
Megaworld Lifestyle Malls
• Smart City Award - Philippines
• Sustainable Infrastructure Award - Philippines
Metro Pacific Tollways Corporation
• Collaborative Partnership Award - Philippines
Muang Thai Life Assurance PCL.
• Health Equity and Inclusion Award - Thailand
New World China
• Green Building Award - Hong Kong
• Green Spaces Award - Hong Kong
NICKEL ASIA CORPORATION
• Excellence Award - Philippines for Sustainable Mining
NoBroker Technologies Solution Pvt. Ltd.
• Job Creation Award - India
Now Health International
• Gender Equality and Women Empowerment Award - UAE
NTUC LearningHub Pte Ltd
• Economic Empowerment Award - Singapore
• Excellence Award - Singapore
OCBC
• Initiative Award - Singapore for Education & Employee Engagement
OCBC Bank (Malaysia) Bhd
• Sustainable Infrastructure Award - Malaysia
OfficePartners360 (OP360)
• Education Equality and Access Award - Philippines
PKF-CAP LLP
• Job Creation Award - Singapore
• Youth Employment Award - Singapore
Prudential Cambodia Life Assurance
• Climate Advocacy and Education Award - Cambodia
PT Bank CIMB Niaga Tbk.
• Energy Efficiency Retrofit Programme Award - Indonesia
PT PLN (Persero)
• Workplace Wellness Programme Award - Indonesia
• Net Zero Award - Energy
PT PLN INDONESIA POWER UBP SURALAYA
• Energy Efficiency Retrofit Programme Award - Indonesia
• Green Building Award - Indonesia
PT AKR Corporindo Tbk
• Sustainable Supply Chain Partnership Award - Indonesia
Qatar Free Zone Authority
• Initiative Award - Qatar for Circular Supply Chain
RAFI MICROFINANCE
• Digital Inclusion Award - Philippines
RCBC Capital Corporation
• Renewable Energy Financing Programme Award - Philippines
RHB Bank Berhad
• Sustainable Transportation Infrastructure Award - Malaysia
Rizal Commercial Banking Corporation
• Economic Empowerment Award - Philippines
RMA Consultants Pte Ltd
• Social Inclusion and Equal Opportunities Award - Singapore
Royal Commission for Jubail & Yanbu
• Sustainable Infrastructure Award - Saudi Arabia
• Sustainable Water Management Award - Saudi Arabia
Rumah BUMN Balikpapan
• Entrepreneurship Development Programme Award - Indonesia
Samsung Malaysia Electronics (SME) Sdn. Bhd
• Waste Management Award - Malaysia
• Carbon Disclosure Award - Malaysia
San Miguel Global Power
• Carbon Disclosure Award - Philippines
• Marine Conservation Award - Philippines
Saudi National Bank
• Green Spaces Award (Parks, Garden, Urban Forests) - Saudi Arabia
Savills (Singapore) Pte Ltd
• Energy Efficiency Retrofit Programme Award - Singapore
• Sustainable Infrastructure Award - Singapore
EVENT: ESGBUSINESS AWARDS
Sawa EcoSolutions
• Climate Advocacy and Education Award - Indonesia
• Net Zero Award - Climate Technology
SBS Transit Ltd
• Sustainable Transportation Infrastructure Award - Singapore
• Mental Health Awareness Award - Singapore
• Industrial Energy Efficiency Award - Singapore
Securities Industry Development Corporation
• Initiative Award - Malaysia for Sustainable Investment
SepPure Technologies
• Waste Management Award - Singapore
• Waste Reduction Award - Singapore
SHELL VIETNAM LIMITED
• Social Inclusion and Equal Opportunities Award - Vietnam
• Inclusion and Diversity Award - Vietnam
South Asialink Finance Corporation
• Job Creation Award - Philippines
Standard Chartered Bank
• Net Zero Award - Banking
Subang Jaya Medical Centre
• Community Health Outreach Programme Award - Malaysia
Swiss-Belhotel International
• Excellence Award - Hong Kong for Sustainable Hospitality
THANH THANH CONG - BIEN HOA JSC (TTC AGRIS)
• Sustainable Agriculture Award - Vietnam
The Bank of Punjab
• Global Partnership Award - Pakistan
The Medical City South Luzon
• Healthcare Services Award - Philippines
uab bank Limited
• Excellence Award - Myanmar for Sustainable Finance
United Overseas Bank (China) Limited
• Smart City Award - China
UOB Malaysia
• Workplace Wellness Programme Award - Malaysia
• Renewable Energy Financing Programme Award - Malaysia
UOB
• Cross-Sector Collaboration Award - Singapore
UOB and Keppel Ltd
• Collaborative Partnership Award - Singapore
UOB Thailand
• Workplace Wellness Programme Award - Thailand
• Gender Equality and Women Empowerment Award - Thailand
Vietnam Maritime Commercial Joint Stock Bank (MSB)
• Initiative Award - Vietnam for Sustainable Business Practices
Vietnam Technological and Commercial Joint Stock Bank (Techcombank)
• Sustainable Product Design Award - Vietnam
Viettel – CHT Co., Ltd. (Viettel IDC)
• Sustainable Infrastructure Award - Vietnam
Western Digital
• 4IR (Fourth Industrial Revolution) Programme Award - Malaysia
Yangtze Institute of Green Finance
• Economic Empowerment Award - China
YAYASAN AMAL MAAEDICARE
• Healthcare Services Award - Malaysia
Active Fire Protection Systems Pte. Ltd.
AETOS Holdings
Alliance Bank Malaysia Berhad Apical Group
Central Food Retail
Chang Hwa Bank Dynamik Technologies
Eupe Corporation Berhad Ferderal Express
GCash
Great Eastern Takaful Berhad
Haymarket Media Limited
HH Global
Insular Life
Keysight Technolohies Malaysia Sdn. Bhd.
KGI Life Insurance Co. Ltd.
Mannings, DFI Retail Group
Metro Pacific Tollways Corporation
EVENT: ESGBUSINESS AWARDS
Muang Thai Life Assurance PCL.
New World China
NTUC Learning Hub Pte Ltd
OCBC Prudential Cambodia Life Assurance
PT Bank CIMB Niaga Tbk.
PT PLN (Persero)
RHB Bank Berhad
RMA Consultants Pte Ltd
Royal Commission for Jubail & Yanbu
Rumah BUMN Balikpapan
Samsung Malaysia Electronics (SME) Sdn. Bhd
San Miguel Global Power
Savills (Singapore) Pte Ltd
SBS Transit Ltd
Securities Industry Development Corporation
Subang Jaya Medical Centre
THANH THANH CONG - BIEN HOA JSC (TTC AGRIS)
The Medical City South Luzon
uab bank Limited
United Overseas Bank (China) Limited UOB and Keppel Ltd
UOB Thailand
UOB
Western Digital
Saudi National Bank
Current traction on sustainable financing in Southeast Asia not enough to get region to net zero
Innovative financing models and collaborative approaches will be essential to bridge the funding gap and drive impactful change.
As the world grapples with climate change, sustainable financing has become a critical tool in directing capital towards environmentally and socially responsible projects. It plays a pivotal role in availing financing and investments to enable the real economy’s transition to a low-carbon, climate-resilient one.
The evolution of sustainable financing Sustainable financing began with responsible investing in the 1970s, where investment decisions aligned with ethical, social, and environmental considerations. Over time, it has evolved to include various financial products promoting environmental sustainability, social inclusivity, and good governance. Today’s sustainable finance encompasses green, transition, social, and sustainability-linked labels.
Broadly, there are two key types of sustainable finance: the “use of proceeds” model, which allocates funds for green, transition, or social projects, and sustainability-linked financing, which links financial outcomes to the Borrower’s or Issuer’s sustainability performance targets. The latter allows the use of funds for general corporate purposes, provided sustainability goals are met.
Stronger momentum needed
In recent years, sustainable financing has gained momentum in Southeast Asia. According to Climate Bonds Initiative, Southeast Asia’s sustainable finance market raised $36b in 2022, nearly doubling since 2020. The same trend is observed at UOB, where sustainable financing for clients supporting the region’s low-carbon transition reached S$50b in June 2024.
Notable areas of growth in the region included the built environment, energy transition, and sustainable trade finance in sectors such as certified palm oil, coffee, textiles, and recycled materials.
Whilst countries have pledged netzero targets, the amount of sustainable financing falls short of the level required. The Monetary Authority of Singapore estimates that Southeast Asia needs $200b in green investment annually through 2030 to meet its climate commitments, around six times the present financing levels. This
shortfall can be attributed to a lack of robust policies, consistent taxonomies, and limited awareness of corporate sustainability.
Small and medium-sized enterprises (SMEs), in particular, face challenges due to perceived cost increases, profit impacts, and infrastructure limitations. According to UOB Business Outlook Study 2024, whilst 87% of SMEs recognise the importance of sustainability, only four in ten have implemented sustainability practices. Financial institutions can support SMEs by simplifying access to sustainable financing. For instance, tools such as the UOB Sustainability Compass provide SMEs with customised and sector-specific action plans, available government support and suitable financing options.
Building momentum with transition finance
Businesses in energy-intensive or hard-toabate sectors face increasing pressure to transition but lack technological or financial alternatives, making it challenging.
To secure investment for transition initiatives, businesses need a robust, aligned climate transition plan covering governance, action steps, capital allocation, risk management, and consistent monitoring.
A climate transition plan must show ambition that aligns with the Paris Agreement goals or adopts science-based targets set
at regional or national levels. Examples of pathways that have been published for regional and national decarbonisation for key sectors include the Network for Greening the Financial System Regional Model of Investments and Development (NFGS REMIND) and the Institute of Energy Economics – New Earth (IEEJ-NE).
Businesses must assess quantitative thresholds based on national taxonomies for projects depending on their location. The “glide path” for companies starting above the pathway is to decarbonise with the aim of convergence as soon as possible. Those starting below the pathway must remain on or below it to maintain as well as reduce emission intensity.
An implementable climate transition plan would mean that it is sufficiently robust to deliver on the said ambition. It needs to be underpinned by consistent disclosures and monitoring that is aligned with existing standards such as International Financial Reporting Standards (IFRS) S2 Climaterelated Disclosures.
Scaling up through innovation and collaboration
The next phase in sustainable finance focusses on transition finance to help companies move from fossil-fuel reliance to cleaner energy. To achieve a just and equitable transition, collaboration with ecosystem partners and financial institutions familiar with the local markets and ESG requirements is essential.
Whilst there is a need to provide guidance to encourage progress, this guidance will have to be applicable and relevant so that instruments, capital, and investments can be utlised to meaningfully contribute to the transition. Through innovative solutions, collaborative efforts, and a concerted commitment to sustainability, Southeast Asia can unlock the full potential of sustainable financing and lead the way for a more resilient and sustainable economy for future generations.
Whilst countries have pledged net-zero targets, the amount of sustainable financing falls short of the level required
Years of Global Trust 50+
Western Digital is powered by the brightest minds in the industry - a worldwide team of engineers, inventors, makers and innovators.
12+ ~53K EMPLOYEES WORLDWIDE ~13K ACTIVE PATENTS
PENANG
MANUFACTURING & PRODUCTION FACILITIES
HDD Media
KUALA LUMPUR Center of Excellence
BATU KAWAN
SSD Center of Excellence
Flash Assembly & Testing
SARAWAK
HDD Subsrate
HDD Media Substrate
Leading the green charge: RHB Bank paves way for affordable, sustainable vehicle financing
RHB’s innovative green financing is driving the adoption of electric and hybrid vehicles, making sustainable transportation accessible to all.
RHB Bank (“RHB” or the “Bank”) is carving out a leadership role in the financial sector with its innovative approach to sustainable vehicle financing. As global concerns about climate change intensify, the demand for green alternatives in transportation has surged. RHB is not just responding to this shift; it’s driving it, making eco-friendly vehicle financing more accessible and attractive than ever before.
Transforming the green mobility landscape Malaysia’s ambitious goal to achieve carbon neutrality by 2050 is a testament to the country’s commitment to a greener future. In this context, RHB’s innovative green financing solutions are emerging as an important catalyst for change.
In Malaysia, whilst the shift towards electric vehicles (EVs) and hybrids reflects growing environmental consciousness, many prospective owners are stymied by financial barriers. The high upfront costs associated with these vehicles, coupled with limited and sometimes restrictive financing options, have created significant obstacles for those eager to embrace greener transportation.
Recognising these challenges, RHB has introduced innovative green financing solutions specifically designed to address these concerns. By offering competitive pricing and flexible terms for both EVs and hybrids, RHB is making sustainable vehicle ownership more attainable. These solutions provide the financial support needed to bridge the gap between aspiration and reality,
empowering customers to make environmentally responsible choices without the burden brought on by prohibitive costs.
Since 2021, RHB has been at the forefront of this transformation, collaborating with leading automotive brands and partners to promote green financing options. The bank’s strategic initiatives include high-profile events such as the Volvo X RHB Premier Customer Event, the RHB Drive Premium & EV Roadshow, and the Electric Vehicle Expo. These platforms have not only heightened awareness of green financing options but also integrated them into mainstream automotive promotions.
Redefining affordability in green financing
RHB Bank also offers competitive pricing on its green financing plans, demonstrating that environmental responsibility does not have to come at a premium. Through campaigns like the Member Get Member Programme, Preferential Pricing for Electric and Plug-In Hybrid Vehicles, and the Instant Principal Reduction Campaign, RHB has set new benchmarks for affordability in sustainable vehicle financing.
These efforts have yielded remarkable results. The bank has achieved a 143% success rate against its year-to-date target for green financing, a clear indicator of the growing appetite for eco-friendly vehicle options. By making EVs and hybrids more financially accessible, RHB is not only supporting individual green choices but also contributing to broader environmental goals.
Charging up sustainable mobility
With more people eyeing electric and hybrid vehicles, financial obstacles have often made it hard to go green. High costs and scarce financing options have kept sustainable transportation out of reach for many.
RHB is leading the charge by addressing
RHB is dedicated to providing innovative green financing solutions
these financial hurdles head-on. Through strategic partnerships and innovative campaigns, RHB is making sustainable vehicles more attainable for everyday drivers. Their approach is not only helping more people afford EVs and hybrids but also driving a significant shift away from fuel-powered cars. This is crucial in reducing carbon emissions and fostering a cleaner environment.
At the recent ESGBusiness Awards 2024, RHB was honoured with the Sustainable Transportation Infrastructure Award - Malaysia, a recognition of its significant contributions to green mobility and sustainability.
Looking ahead, RHB plans to enhance its green financing offerings further. The bank is exploring new strategies and deepening collaborations to drive greater adoption of sustainable vehicles. This forward-thinking approach underscores RHB’s commitment to promoting green transportation and advancing environmental sustainability.
A vision for a greener future “As the market evolves and sustainability becomes a key priority, RHB is dedicated to providing innovative green financing solutions,” said Jeffrey Ng Eow Oo, Managing Director of Group Community Banking, RHB Banking Group. “Our mission is to support the transition to eco-friendly vehicles, driving us all towards a cleaner and more sustainable future.” In a landscape increasingly defined by environmental responsibility, RHB’s pioneering approach to vehicle financing stands out. By making sustainable choices more accessible and affordable, RHB is not just participating in the green revolution – it’s leading it.
RHB Bank receives the Sustainable Transportation Infrastructure Award - Malaysia at the ESGBusiness Awards 2024
Jeffrey Ng Eow Oo, Managing Director of Group Community Banking, RHB Banking Group
Reflecting leading companies’ commitment to building a sustainable future
SNB won the 2024 ESGBusiness Award for green spaces.
Saudi National Bank (SNB) has been given the 2024 ESGBusiness Award in the Green Spaces Award (Parks, Garden, Urban Forests) - Saudi Arabia category, recognising its outstanding efforts in environmental sustainability and culminating its environmental programmes under the Saudi Green Initiative. This award reflects the bank’s commitment to achieving corporate sustainability to support the environment and empower communities.
The bank has successfully promoted biodiversity, protected coastlines, and planted mangrove trees whilst working on rehabilitating and increasing green spaces. This was accomplished through
mangrove trees along the eastern coast and the Red Sea, and installed water management systems in 70 mosques, with plans to implement these systems in 100 mosques by the end of 2024. Additionally, the bank has been actively involved in reforesting parks and urban areas across the Kingdom, in line with the “Saudi Green Initiative,” aligning with Saudi Vision 2030 to enhance environmental sustainability and social responsibility.
Basma Al-Jawhari, Head, Environmental, Social and Governance at SNB, expressed pride in receiving this prestigious award. “We believe at the bank that environmental practices
A sustainable future starts here
At
SNB is the recipient of the Green Spaces Award (Parks, Garden, Urban Forests) - Saudi Arabia
CIMB revolutionises EV charging with its first-in-market contactless payment solution
By simplifying the charging process, CIMB is driving EV adoption and shaping a more sustainable future.
CIMB Bank Berhad (CIMB) partnered with JuiceUP, Visa, and EVPower to introduce a first-in-market contactless payment solution for electric vehicle (EV) charging at charge point operators (CPO). Committed to supporting the adoption of sustainable transportation, CIMB’s innovative solution removes a significant barrier to EV ownership by streamlining a crucial part of the EV experience.
Fragmentation in EV charging infrastructure
Currently, the EV charging infrastructure in Malaysia remains fragmented, with most CPOs requiring users to navigate individual mobile apps for charging. This fragmentation has led to inconveniences to users, including technical issues and potential privacy risks, which hinder the overall user experience.
Providing a seamless charging experience
Through this partnership, CIMB aims to simplify the EV charging process by providing a convenient, contactless payment method that allows EV owners to charge their vehicles using debit or credit cards. This instantly eliminates the need for cash payments or app downloads, making the charging experience more seamless to encourage wider adoption of EVs in Malaysia.
Measurable impact and results
Since the launch of the solution, CIMB has set a new benchmark for customer experience comparable to refuelling at petrol stations. As of October 2024, 95% of EVPower customers have opted for contactless payment, resulting in thirteen times the growth in CIMB card usage for EV charging payments.
Smart City Award recognition
This initiative is paving the way for a transformative shift, empowering more CPOs to adopt contactless payment solutions and accelerating the transition to a sustainable transportation ecosystem. By improving urban sustainability and enhancing quality of life, CIMB has solidified its position as a leader in innovation, earning its recognition through the Smart City Award.
Haymarket’s ambition is for our workforce to be truly reflective of the communities we serve and we continue to embed diversity, equity and inclusion in all that we do.
This is reflected in our overarching purpose:
Shaping a better future with remarkable content.
Signing Ceremony of strategic partnership EV solution with CIMB, JuiceUP, Visa, and EVPower
Photo:
Start your journey with UOB Sustainability Compass
The UOB Sustainability Compass is a simple online assessment tool that generates a customised guide for your business, in just 5 minutes.
This complimentary 22-page guide will help you
Identify your sustainability maturity stage
Understand regulations and standards affecting your sector
Take action with a guided plan
Learn about government support available
UOB Sustainability Compass is available in:
Singapore: uob.com.sg/compass
Malaysia: uob.com.my/compass
Thailand: uob.co.th/compass
SUSTAINABLE
SUSTAINABLE
Yanbu Industrial City: A global hub for sustainable growth
The city is poised for continued growth, driving innovation and sustainable development in Saudi Arabia’s economy.
The Royal Commission for Jubail and Yanbu was established in 1975 by a Royal Decree in the Kingdom of Saudi Arabia.
Yanbu is home to the largest oil export port on the Red Sea coast and the largest handling station for petroleum and chemical liquids. The city is strategically located near the Suez Canal. The industrial sites occupy about twothirds of the city’s total area of 185 square kilometers, with an additional expansion of 420 square kilometers.
Yanbu Industrial City currently hosts more than 110 facilities dedicated to hydrocarbon and petrochemical industries and metal processing.
Vision: The first choice for investors in the industrial sector and the key contributor to its progress as well as sustainability in the Kingdom of Saudi Arabia.
Mission: Develop, empower, and manage sustainable industrial cities to encourage innovation and provide advanced infrastructure and remarkable services for a prosperous economy and vital society.
(Cirata Floating Solar Power Plant)
The largest oating solar power plant in Southeast Asia, Embodies PLN's commitment to accelerating ESG principles and energy transition towards becoming a green and sustainable top 500 global company. With a capacity of 192 MW, PLTS Cirata delivers clean energy to millions of households while signi cantly reducing carbon emissions, paving the way for a greener, more sustainable and innovative energy future for Indonesia!
ANDREW LAU OPINION
Valuers face ESG reckoning as new standards redefine Hong Kong’s property market
The recent changes to the International Valuation Standards have taken effect this year, requiring surveyors to integrate ESG metrics into property valuation reports.
Current and upcoming regulatory requirements
Property stakeholders in Hong Kong should be aware of several current and upcoming regulatory requirements. Here are some key changes: ESG metric integration: Valuation standards now often include specific ESG metrics, such as energy efficiency, carbon footprint, and social impact. Adding these metrics to standard reports help assess the sustainability and ethical impact of properties.
Regulatory requirements: Hong Kong is pursuing more stringent ESG disclosure requirements for listed companies. The Hong Kong Stock Exchange (HKEX) has introduced new climate-related disclosure requirements that will come into effect in phases starting from 1 January 2025. These requirements align with the International Sustainability Standards Board (ISSB) standards and will mandate disclosures on various ESG aspects, including greenhouse gas emissions. The move puts increasing pressure on property valuers to consider ESG factors. This ensures that stakeholders know their investment’s environmental and social implications, including their property acquisitions or rentals.
Market demand: There is increasing demand from investors and tenants for properties that meet high ESG standards. This has pushed valuation professionals to consider ESG factors more seriously to reflect market preferences accurately.
Risk assessment: ESG factors are now critical to assessing long-term risks and opportunities. Properties with poor ESG performance may face higher risks, such as regulatory penalties, higher insurance costs, or decreased marketability, which are now factored into valuations.
Standardisation and guidelines: Organisations like the International Valuation Standards Council (IVSC) and the Royal Institution of Chartered Surveyors (RICS) have updated their guidelines to include ESG considerations, providing a more standardised approach to incorporating these factors into valuations.
These changes will ensure that property valuations reflect the growing importance of sustainability and ethical considerations, making ESG a crucial aspect for stakeholders to consider.
Valuers left between a rock and a hard place
Despite valuers advocating to clients at every turn that they should take note of their ESG rating, Hong Kong lags behind other markets, including the mainland, since there is no legislation to force compliance on property assets. Given economic conditions and geopolitical uncertainty, prioritising ESG metrics is unlikely to happen in the foreseeable future, and few valuers would force the issue, given how detrimental it could be to clients.
However, the argument could be made that wantonly ignoring ESG remits is hurting our clients. Several tangible benefits can be gained by actively improving an asset’s ESG score – enhanced asset
ANDREW LAU Director, ESG Advisory - Asia Colliers
value, cheaper financing, access to other incentives, lower operating costs, reduced risk, enhanced tenant satisfaction and increased rental value. Yet, many local developers and investors still do not see the point of adding to their CAPEX, especially if it means retrofitting a mature asset. This kick-the-can-down-the-road attitude has not directly impacted the asset’s sale value, yet.
However, as banks demand more ESG information about the companies that want to borrow their money – who they lend to affect their own ESG ratings – they require more transparency in valuations.
The brown discount
Quantifying how much Hong Kong’s property market has been affected because it is not as ESG-forward as other markets – the mainland, Singapore, the UK – would be even more unlikely given the cluster of factors at play: a lack of data from which to make the calculations needed; a lack of legislative requirements applicable to Hong Kong; and reticent owners who feel they can still hang on long enough to sell the asset at a profit quickly enough to avoid the crunch.
When the new standards come into force, professional valuers will have no choice but to find a way to make ESG count in an asset’s value. Stakeholders who have neglected their ESG issues will, amongst other things, find that borrowing money is not easy and more expensive. Valuation is about quantifying risk; if an asset is likely to be affected by extreme weather, it is more of a risk.
Hong Kong has already experienced the results of climate change – super typhoons, black rainstorms, flooding, extreme heat and cold weather. All these phenomena cause significant damage to assets and endanger people’s lives and livelihoods, so much so that they are a relevant factor in any property asset’s value. As we have seen in other countries, they can also lead to companies refusing to assure assets.
However, ESG valuation is more nuanced than just looking at location. Market trends favour properties with strong ESG credentials. Investors and tenants prioritise sustainable and socially responsible buildings, directly affecting their sales value. Properties that fail to meet ESG standards will incur ever-increasing operational costs that will factor into investors’ calculations. When the government decides to crack down on carbon emissions, non-compliance can result in fines, legal issues, and increased oversight by regulators.
Whilst those factors are easy to spot, investors and tenants would also consider a property’s effect on its reputation and brand value. They have an image to maintain. Stakeholders expect properties to adhere to ESG principles because their reputations are also affected.
Hong Kong has a notoriously swift property turnover rate – aided by the removal of the spicy taxes, lowering the loan-to-valuation ratio and lowering interest rates – which encourages speculators not to look too far into the future. But there will come a point when asset owners could struggle to dispose of assets which are not green clean, losing a large chunk of their anticipated profit.
SONI TIWARI
ESG is gaining momentum with regulators in Asia, but more work lies ahead
Regulatory bodies in Asia have intensified their focus on sustainability reporting as investors globally are increasingly relying on the data for decision-making.
Asia Pacific region continues to dominate in presenting sustainability data in annual reports
Notable developments since mid-2023 include Hong Kong’s principles for Net Zero Transition planning, Singapore’s green and transition taxonomy, Taiwan’s International Sustainability Standards Board (ISSB)-aligned disclosures for large listed corporates, Japan’s ISSB-linked sustainability disclosure standards, and India’s regulation for ESG rating providers. Whilst the increased focus on corporate ESG disclosures is a positive step, regulators must also ensure robust oversight to prevent the risk of greenwashing and maintain the integrity of sustainability efforts.
Increased sustainability reporting driving ESG investments
The growing integration of sustainability information by investors in their investment decision-making is driving a more comprehensive form of sustainability reporting by corporates. A study on global investors found that more than 83% investors incorporated sustainability information in their fundamental analysis in 2023, and 79% have sustainability policies in place, as against 20% in 2018.
ESG reporting has expanded in Asian markets, spurred by major corporations’ adoption of ESG practices. A global survey on sustainability reporting trends found that 89% of leading Asian corporates reported sustainability in 2022, a dramatic increase from 2011, when the figure was 49%.
This increasing momentum in sustainability reporting has positively influenced fund flows towards ESG investments in Asia. When global fundraising decreased in 2022 and 2023, ESG funds, especially those in Asia, witnessed stronger resilience than the broader market. Sustainable Bond issuance in Asia-Pacific in 2023 was 40% higher year-on-year and accounted for a third of global sustainable bond issuance of $872b.
Focus on data-driven ESG investments invites greater scrutiny
As investors increasingly rely on sustainability information for decisionmaking and companies provide detailed reporting, the demand for external validation has grown, leading to greater third-party scrutiny of corporate ESG disclosures. For instance, a recent report found that 94% of investors globally use ESG ratings at least once a month to make decisions, and the influence of these rating tools in financial markets has surged. Whilst these ratings offer insights into risks, opportunities and competitive positioning, they also invite scrutiny by rating providers into the ESG practices of companies. Another report published by the International Federation of Accountants (IFAC) found that 69% of companies globally obtained assurance on at least some of their sustainability disclosures in 2022.
This underscores that alongside the growing number of ESG regulations in Asia, there is a strong focus on quality, emphasising the need for stricter regulations to reduce the risk of greenwashing, particularly due to the varying definitions between developed and developing markets. In the European Union, the European Sustainability Reporting Standards adopted in July last year, requires limited assurance
SONI TIWARI Energy Finance Analyst IEEFA India
Regional sustainability reporting rates
Source: KPMG International
of sustainability reporting by companies under the scope of the standards. Similarly, on the fundraising side, any labelled EU Green Bond by corporate issuers must have mandatory, pre-, and postissuance reviews and a bond impact report issued by external reviewers. ESG investors are likely to favour jurisdictions where regulations do not just ensure the scope of reporting, but also the quality of reporting.
Way forward for regulators and corporates in Asia
Japan’s first transition bond issuance in February 2024 is a classic example of how external reviews can supplement fundraising efforts. Japan issued a sovereign transition bond of $11b for a 10-year period, at a coupon rate of 0.7%, whereas the average coupon rate for a 10-year bond was above 1%. These bonds have an independent certification by Climate Bonds Initiative under the Climate Bond Standards, an independent verification conducted by the Japan Credit Rating Agency, and a second-party opinion provided for the bond framework. Japan’s transition bond issuance is aimed at creating a domestic ecosystem of such issuances and demonstrating the effects of best practices on sustainable debt issuance for corporates.
For regulators in Asia, alongside the wider implementation of ESG regulations, there should be a focus on addressing the risks that arise from increased disclosures. For instance, guidelines should be established to ensure validation, or at the very least, disclosures should be verified to provide assurance on the accuracy of data. Assurance firms offering these services must be required to hold appropriate licences and permissions. Similarly, sustainable debt issuance should be accompanied with mandatory pre- and post-issuance reviews. For broader applicability and stronger enforcement of ESG practices across a larger number of companies in Asia, there must be a shift from foundational or diluted regulations to clear and precise standards.
Figure 5: Sustainability information in annual fnancial reports (2017–2022)
Progress in harmony for a sustainable ASEAN
At UOB, we are committed to building a sustainable future for ASEAN, doing right by our customers, communities and the environment.
In balancing growth with responsibility, we believe that people and the planet can progress together in harmony.
Best Cross-Sector Collaboration Award
Best Collaborative Partnership Award – UOB Group
Smart City Award
– UOB China
Workplace Wellness Programme Award
Gender Equality and Women Empowerment Award
– UOB Thailand
Workplace Wellness Programme Award
Renewable Energy Financing Programme Award – UOB Malaysia