Many companies and their leaders are increasing their focus on environmental, sustainability and governance (ESG) principles and taking steps to ensure such practices are embedded in the way they conduct business.
There are many reasons for this beyond the simple responsibility to act as a good corporate citizen. Businesses are also responding to growing pressure coming from customers, investors, regulators, employees, governments and other stakeholders.
Banks and financial institutions have an important part to play in hard-wiring ESG principles into their operations by being responsible lenders, expanding financial inclusion and helping customers and their supply chain meet agreed standards, as well as financing environmentally sustainable businesses.
Southeast Asia’s banks have made good progress with green finance, achieving record levels of green, social and sustainable (GSS) debt issuance last year, according to the Asean Sustainable Finance State of the Market 2020 report from the Climate Bonds Initiative.
GSS issuance in Asean reached US$12.1 billion last year, up 5.2% from 2019. Cumulative GSS debt issued in the region since 2016 now tops $29.1 billion. Singapore leads the region with $11.9 billion, followed by Indonesia ($5.5 billion), the Philippines ($4.9 billion), Thailand ($3.9 billion) and Malaysia ($2.6 billion).
Source: The Bangkok Post