The need to transcend carbon tunnel vision – Asia Times

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One of the biggest international issues of our time is climate change. Last year was the nation’s hottest month on record by a large margin and possible the world’s best in the last 100, 000 times.

By then, it is well known that greenhouse gas emissions are the cause of climate change, which makes multi-country renewables attempts particularly urgent.

However, we also need to make sure we do n’t fall victim to” carbon tunnel vision,” which means focusing solely on emissions while ignoring other interrelated issues that are responsible for climate change.

For instance, we are in the midst of the sixth mass extinction, mostly caused by human activity. Between 1 000 and 10 000 times higher than the rate of biological death are currently occurring.

In addition, wildlife lost threatens up to one million species as well as invaluable communities. As ecosystems decompose, it further aggravates climate change by affecting the capacity of the Earth to self-regulate and disrupts normal carbon phases in land and sea.

Another linked problem is serious consumption, which is increasing at an alarming rate, mainly in higher- income countries. In fact, solutions are being squandering tools ‘ potential at a rate that is beyond the scope of our planet. &nbsp,

Overconsumption is a major contributor to the climate crisis, as well as the lack of resources that makes it difficult to implement specific environment options.

For instance, the numerous devices and appliances we use and replace frequently use similar rare earth metals that are needed for solar panels, wind fields, and electric cars.

Luckily, many of these problems may be solved in combination. To ensure the continuation of progress into the future, two things are needed: social resolve to implement change and transformative education on sustainable growth.

Social courage is needed at all levels, including at the regional, position, national, regional and global levels. Different nations can continue to advance if certain potent nations are preventing progress.

The European Union forgeted the European Green Deal by reversing 99 climate laws and regulations while Trump was president, which briefly removed the US from Paris.

During this time, China even emerged as the world’s largest producer of solar energy. Moreover, in 2020, The High Ambition Coalition for Nature and People launched the 30×30 program to protect 30 % of Earth’s land and ocean place by 2030, with over 50 countries signing on by January 2021.

If one degree is in a deadlock, progress can also proceed at various levels. Partners from all industries can and do work to advance climate agendas if federal gridlock is preventing the passage of legislation.

For instance, after Trump withdrew from the Paris deal, over 1, 200 US states, cities, tribal governments, companies and institutions pledged their support for the Paris Agreement and committed to weather action in the presence of national authority.

A group of 25 children and youth in Colombia fought back by suing their country’s government for thwarting deforestation, and the resultant verdict was historic.

And the Science Panel for the Amazon has been created by over 240 scientists, two-thirds of whom are from Amazonian nations.

Second, ensure that people across generations are educated and knowledgeable about the pressing issues facing our planet by ensuring that they are educated and knowledgeable about the complex environmental and social challenges of today.

Education for Sustainable Development ( ESD ) is a vibrant field that aims to impart the fundamental principles and values of sustainability to everyone. The next generation now has the fundamental skills and tools to continue working toward a sustainable future through ESD.

For example, the Global Schools Program has trained over a 1, 000 teachers and engaged 176, 000 students in ESD. Meanwhile, the Laudato Si Movement, brought about by Pope Francis ‘ encyclical, has inspired and mobilized Catholics all around the world to care for the environment and achieve ecological justice.

A problem as grave and significant as climate change cannot be resolved through one method, such as emissions reductions. Instead, it will require parallel progress on multiple fronts, as well as political stability and transformative education for sustainable development. &nbsp,

Life on Earth continues to be interconnected, and all living things and systems around us are inextricably linked to one another. Let us keep in mind this upcoming Earth Day that we require interconnected solutions to solve interconnected issues, and that progress for one equals progress for everyone.

Justin Liew works for Sunway University and the UN Sustainable Development Solutions Network as a research analyst.

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Ravi Menon to be Singapore’s first Ambassador for Climate Action

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In: South-East Asia

SINGAPORE: Mr Ravi Menon, the former chief of the Monetary Authority of Singapore, will be the government’s earliest Ambassador for Climate Action.

He may play a major role in&nbsp, Singapore’s weather efforts internally and above, as well as represent the country at global climate action platforms.

” He will even drive public- exclusive partnerships with regional participants, in particular the business community, to help them acquire chances to succeed in a low- carbon future”, the National Climate Change Secretariat (NCCS) said on Tuesday ( May 26 ).

Mr Menon will also be a top director at NCCS, which falls under the Prime Minister’s Office.

On April 1, both meetings take result.

Singapore has set a goal of achieving gross- zero&nbsp, pollution by 2050. &nbsp,

Some approaches to achieving that goal include promoting changes in business practices and investing in low-carbon technology. &nbsp,

Singapore will actively participate in fostering global cooperation to influence global climate action, and it will make use of our advantages as a global hub in doing so,” NCCS continued.

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‘More efforts needed’ to achieve sustainable development goals

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In: South-East Asia

Progress is currently” never quick much.”

PUBLISHED: 15 Mar 2024 at 05: 00

'More efforts needed' to achieve sustainable development goals

The UN Global Compact’s Outreach & Engagement captain, Sue Allchurch, warned that the effort to create a healthier world area is in danger of failing. More ambitious shared actions from all stakeholders is required to meet the UN’s sustainable development goals in 2030.

Ms. Allchurch said in a statement to the media during a trip to Thailand that while the world has acknowledged the value of sustainable development, progress toward achieving the goals is no quick enough.

There are many barriers towards achieving the goals, including political instability, financial problems, and the effects of the pandemic and climate change, she said.

She said,” The business market is presently facing an unprecedented number of unusual global challenges that have never occurred before,” noting that the issues are much more difficult than they have previously.

According to Ms. Allchurch, citing a survey conducted by the UN Global Compact, 98 % of corporate executives global concurred that the UN’s sustainable development goals have given them a renewed target.

Around 75 % of Directors in the Asia-Pacific territory claimed to have contributed to the achievement of the targets by implementing conservation techniques in their day-to-day operations. The work, however, are n’t enough, she said. According to the study, 85 % of businesses worldwide are not on record to meet the objectives.

Only 39 % of the companies that have set goals that are in line with what the world needs, according to Ms Allchurch, out of the 91 % of those who have committed to sustainable development goals.

She claimed that the private business needs to set more ambitious goals in order to overcome the obstacles to achieving sustainable development goals and raise public awareness.

” We are convinced that the secret business will start to make significant changes.” They have come to an agreement that the technologies is a means of limiting the consequences, and they will invest in it, she continued.

The United Nations Global Compact last month released a CEO Sustainable Development Report that gathered major executive views on conservation, based on the 2030 SDGs plan, participated by 2, 600 Executives from 128 places.

According to the report, 98 % of CEOs listed inflation and price fluctuations as their top concerns, with 98 % of them citing them as their top concerns.

Climate change ranked third among the fears, with 93 % of the Directors listing it as a problem.

The UN Global Compact is now focusing on five key areas of green growth, particularly gender equality, climate action, living income, water endurance as well as finance and investment.

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Commentary: Singapore’s balancing act continues regardless of US election outcome

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In: Asia

Fourth, given that his predecessor is still controversial on a national level, the Biden strategy wants this election to be less of a referendum on the president’s second term and more of a choice over a second one. Trump’s irresponsible call for social security cuts is just one example of how he made it simpler for Biden to carry out that plan.

WHAT TO Expect During A Next Trump Trial

A Donald Trump return to power in the US would have significant repercussions internally.

A Trump success will result in work to source out the therefore- called “deep position” of civil servants, impacting the US government’s ability to function as it does now. His planned severe immigration crackdown will also result in a decline in home suffering, both economically and socially, as well as in international relations and climate change.

There will be a lot of influence on the rest of the world because the world’s security is more sensitive than ever.

If the US were to remain in the North Atlantic Treaty Organization ( NATO ), a second Trump term would mean a lessening of its commitment to Ukraine and a significant reduction in its involvement there.

Countries like Japan and South Korea are likely to find their individual nuclear weapons, which would have an impact on their relations with China and have a regional influence as a result.

A Trump presidency would be less likely to participate in restraining Israel in its vengeance against Hamas ‘ Oct. 7, 2023 strike, which the Biden administration has begun to do more formally. &nbsp, This could lead to further increase of the conflict, which may directly impact Singapore’s sea market.

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‘More efforts needed’ to achieve SDGs

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In: South-East Asia

Progress is currently” never quick enough.”

PUBLISHED: 15 Mar 2024 at 05: 00

The UN Global Compact’s Outreach & Engagement captain, Sue Allchurch, warned that the effort to create a healthier world society is in danger of failing. More optimistic collective action from all partners is required to accomplish the UN’s 2030 objectives.

Ms. Allchurch said in a statement to the media during a trip to Thailand that while the world has acknowledged the value of sustainable development, progress toward achieving the goals is no quick enough.

There are many barriers towards achieving the goals, including political instability, financial problems, and the effects of the pandemic and climate change, she said.

She said,” The business market is presently facing an unprecedented number of unusual global challenges that have never occurred before,” noting that the issues are much more complicated in nature than they have previously.

According to Ms. Allchurch, citing a survey conducted by the UN Global Compact, 98 % of corporate executives global concurred that the UN’s sustainable development goals have given them a renewed target.

By implementing conservation techniques in their main businesses, roughly 75 % of CEOs in the Asia-Pacific territory claimed to have contributed to achieving the goals. The work, however, are n’t much, she said. According to the study, 85 % of businesses worldwide are not on record to meet the objectives.

Only 39 % of the companies that have set goals that are in line with what the world needs, according to Ms Allchurch, out of the 91 % of those who have committed to sustainable development goals.

She claimed that the secret business needs to set more ambitious goals in order to address the obstacles to achieving sustainable development goals and raise public awareness.

” We are convinced that the secret business will start to make significant changes.” They have come to an agreement that the technology is a way to reduce the consequences, and they will spend in it, she continued.

The United Nations Global Compact last month released a CEO Sustainable Development Report that gathered major executive views on conservation, based on the 2030 SDGs plan, participated by 2, 600 Executives from 128 places.

According to the report, CEOs ‘ top concerns are inflation and price fluctuations, with 98 % of them citing it as their top concern.

Climate change ranked third among the fears, with 93 % of the Directors listing it as a problem.

The UN Global Compact is now focusing on five key areas of green growth, particularly gender equality, climate action, living pay, water endurance as well as finance and investment.

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Companies must seize opportunities to go green and stay competitive, or risk losing out: Grace Fu

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WHERE THE Earth focuses ON CLIMATE CHANGE

Besides opportunities, Singapore has come up with different techniques to encourage businesses to decarbonise, like as implementing a carbon tax.

Ms. Fu pointed out that some industries are now experiencing climate change’s results.

She added: “Do we want to rush and get swept- and say, ‘just delay, keep on, let’s see who else is doing and how hard they’re moving before we start. ’

“Or do we say: ‘ Hey, we need to do this anyway, so might as well make full use of the opportunities that come our way. ’” 

At the discourse, Ms Fu also spoke about how the COP28 climate talks in Dubai had been fairly effective.  

Delegates agreed to officially create a loss and destruction fund to assist flimsy nations that are dealing with climate change on the first day of the weather summit.  

After two months of intensive conversations, members from nearly 200 nations finally reached a deal that urges countries to switch from fossil fuels.

A global overview of where the world stands on climate change was also revealed at the Dubai event, and how nations have fared in bringing global heat to the important 1 level. 5 degrees Fahrenheit control called for in the Paris Agreement.  

We all come to terms with the fact that this is the goal that we will pursue, and we have specific suggestions for the change, she said.  

So it’s really a step toward simply saying that everyone should strive for this goal, and that everyone should work toward it, especially in terms of mitigation. ”

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IWD Deal Analysis: How IIX’s WLB6 Orange bond helps women’s livelihoods in Asia | FinanceAsia

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In: Asia, Finance, South-East Asia

In a growing regional trend, December 2023 saw the sixth issuance of Impact Investment Exchange (IIX)’s Women’s Livelihood Bond (WLB) Series, the $100 million Women’s Livelihood Bond 6 (WLB6).

Altogether the IIX, since 2017, has raised $228 million to support women’s economic empowerment in Asia, with the overall trend in deal size on an upward trend. FinanceAsia discussed the investors, the rationale and the processes involved in order to celebrate International Women’s Day (IWD) 2024 on Friday, March 9 and the drive towards diversity, equity and inclusion (DEI) across the region. 

The closing of WLB6 marked the world’s largest sustainable debt security and was issued in compliance with the Orange Bond Principles and aims to uplift over 880,000 women and girls in the Global South.

Global law firm Clifford Chance advised Australia and New Zealand Banking Group (ANZ) and Standard Chartered Bank pro bono as placement agents.

Proceeds from WLB6 will be used to promote the growth of women-focused businesses and sustainable livelihoods across six sectors: agriculture; water and sanitation; clean energy; affordable housing; SME lending and microfinance across India, Cambodia, Indonesia, Kenya and Vietnam. 100% of the $100 million proceeds designed to advance UN’s Sustainable Development Goals (SDG) 5: gender equality and 25-30% designed to advance SDG 13 — climate action.

Robert Kraybill, chief investment officer, IIX, told FA: “The Women’s Livelihood Bond (WLB) Series is a blended finance instrument that pools capital from public-sector development finance institutions and private-sector investors. The public sector investors provide risk-tolerant “first-loss” capital in the form of subordinated notes, while the private sector investors purchase the senior bonds.”

“The WLB Series targets a range of private sector investors seeking a combination of high impact with low risk and an appropriate return. From the outset, beginning with the WLB1, the bonds have attracted both family offices and institutional investors. Initially, this was skewed towards family offices. As the WLB issuances increased, we saw increased interest from institutional investors, such that over 90% of the WLB6 was placed with institutions,” added Kraybill. 

For WLB6, there were global investors on the deal including from the US, Europe and Asia Pacific (Apac). The WLB6 bonds comply with the EU and UK securitisation regulations, making it easier for European institutional investors to participate. For example, one of the investors was Dutch pension fund APG Asset Management which invested $30 million.

Kraybill said: “Throughout building the loan portfolios for the WLBs – from sourcing and screening to due diligence – we integrate traditional credit criteria with impact criteria. We look to invest in companies meeting our credit and financial criteria while delivering meaningful positive impact.”

“We are proud that we have not experienced any payment defaults or credit losses on any of the WLB loan portfolios, demonstrating the resilience of the high-impact women-focused businesses that we work with, even in the face of challenges posed by the Covid-19 pandemic. The first two bonds in the WLB Series – WLB1 and WLB2 – have matured and been fully retired, meeting all of their obligations to bondholders,” Kraybill added. 

The IIX, which is headquartered in Singapore and has offices in Australia, Bangladesh, Brunei, India, Indonesia, the Philippines, Sri Lanka and Vietnam, also tracks the impact outcomes generated by its investment throughout the life of the bonds and reports on the targets. WLB1 and WLB2 exceeded impact projections, according to IIX.   

Complex deal

Given the number of parties involved and a myriad of regulations and compliance, the deal was not easy to put together. 

Gareth Deiner, partner at Clifford Chance, explained to FA the law firm’s role in the deal: “We’ve been involved for several years on these transactions, and this is not the first woman’s livelihood bond that the IIX team has put together.”

Singapore-based Deiner continued: “Historically, we have acted on the trustee side, but we have been advising the lead managers of the transaction for the last three offerings. It’s approximately a three to four month execution process to make sure we get the documentation agreed and the structure in place. IIX do the underlying due diligence on the borrowers, which is necessary given that the financing is raised from the international capital markets. Together with their counsel, they work on the disclosure in the offering document for the bond transaction.”

“As counsel to the lead managers, we are responsible for the underlying contractual documentation for the notes and the offering, but it’s IIX who retain control over the loan documentation with the notes proceeds end-users, and putting the loan pool together. They’re doing due diligence on the on the underlying borrowers of the deal,” he explained. 

This is backed up by IIX’s due diligence. IIX’s Kraybill explained: “The financial due diligence conducted by our credit team is similar to that of other emerging market lenders. What sets us apart is the upfront impact due diligence and ongoing impact monitoring and reporting conducted by our impact assessment team. Our team screens potential investments against rigorous eligibility criteria to ensure they contribute to positive outcomes for underserved women and gender minorities in the Global South while often empowering women as agents of climate action.”

Navigating US legal rules and dealing with investors from around the world also added to the complexity. 

Deiner said: “Dealing with a wide range of investors, including qualified institutional buyers in the US, we needed to comply with US federal securities law, including limiting the sale of the notes to qualified purchasers under the US Investment Company Act. There were also certain structural considerations raised by the EU and UK securitisation regulation.”

“From a legal perspective, it was an interesting deal because there’s a wide range of highly technical substantive law, which required the input from specialists across the Clifford Chance network. We have the expertise across the globe and do a lot of sustainable financing work,” continued Deiner. 

“Recently we’ve advised on some market-leading and groundbreaking transactions in terms of bringing sustainability finance technology to capital markets transactions,” he added.

However, this deal, in particular, involved social governance goals. 

Deiner explained: “What we like about this particular transaction is that so much of the Environmental Social and Governance (ESG) agenda is about the environmental (E) angle, such as green bonds related to carbon transition and climate action. That encompasses sustainable  development goal 13 of the UN Sustainable Development Goals (SDG).”

“However, you rarely hear about sustainable finance transactions that focus on the S and the G in ESG, which IIX champions. Each of the sustainable development goals (SDG) has its own hue, its own colour. This transaction focusses on SDG 5, which is gender equality, and are referred to as Orange bonds – orange being the hue for SGD 5. In addition, IIX has developed its own framework and principles to really drive that S in the ESG,” he added.

Tracking societal impact

There is still a key issue on how to track the impact of where the money ends up.

IIX’s due diligence process includes interviews with beneficiaries and stakeholders of investees,  using its own digital impact assessment tool to incorporate input from a broad group of female beneficiaries. This verifies impact claims while giving a voice and value to the women it is assisting, according to Kraybill.

He continued: “Our selection process for projects funded through WLB6 closely aligns with the objectives of The Orange Movement. Each of the bonds in the WLB Series adheres to The Orange Bond Principles, which focuses on empowering women, girls, and gender minorities, particularly in climate action and adaptation.”

IIX looks at the potential of each project’s mission, vision, goals, and business structure, to evaluate alignment with the core values of the WLB Series and The Orange Movement. Its impact assessment team conducts due diligence to ensure selected projects meet criteria outlined by The Orange Movement and contribute to promoting gender equity and addressing climate challenges in emerging markets, according to Kraybill.

With the rise of bonds connected to ESG and DEI, the scrutiny from investors is also increasing, especially with the prevalence of greenwashing. 

Clifford Chance’s Deiner said: “The legal landscape for green bonds and sustainability-linked bonds has evolved considerably in recent years, particularly regarding due diligence. When a company issues a green bond under a green bond framework, substantial work is required to ensure the bond’s integrity. This diligence has become a critical factor in investment decisions, as investors need to be confident that the environmental credentials are genuine and not merely an instance of greenwashing.”

“One of the key parts of the Orange bond initiative is achieving transparency in the investment process and decision, and the subsequent reporting, as the proceeds are going to an issuer who is on-lending it again, to, for example, a microfinance lender. It’s a combination of seeking an investment return and a view on the credit profile. The funds have specific objectives regarding capital allocation, and the appeal of the Orange bond aspect aligns with this focus,” Deiner added. 

$10 billion goal

The IIX has an ambitious goal of mobilising $10 billion by 2030 and optimism abounds. 

Kraybill said: “We remain optimistic about reaching our ambitious goal through sustained collaboration and concerted action, empowering women and girls worldwide while fostering inclusive and sustainable development.”

“Partnerships with the Orange Bond Steering Committee organisations, like the Australian government’s Department of Foreign Affairs and Trade (DFAT), the UN Capital Development Fund (UNCDF), Nuveen, and others, are vital in this endeavour. Together, we aim to build a gender-empowered financing system, mobilise new capital, and accelerate progress toward gender equality and women’s empowerment globally,” Kraybill added.

The Orange Movement is also building “Orange Alliances” at regional and national levels to bring together gender lens investors and other stakeholders. IIX is conducting training programs to train and certify Orange Bond verification agents.

“We’re introducing an “Orange Seal” for MSMEs and other organisations, which enhances their gender, DEI, and climate bona fides. We have expanded our transaction tagging functionality to include innovative finance instruments that adhere to the Orange Bond Principles framework. Furthermore, we’re eagerly anticipating the launch of the Orange Loan Facility, alongside numerous other initiatives to further the Orange Movement’s mission,” Kraybill said. 

He said: “We remain optimistic about reaching our ambitious goal through sustained collaboration and concerted action, empowering women and girls worldwide while fostering inclusive and sustainable development.”

The next bond could potentially be much larger than WLB6’s $100 million. 

Clifford Chance’s Deiner is also optimistic: “There’s a flow of transactions that we’re going to see over the next 12 months, and this an area that people are paying more attention to. The transactions have grown considerably over the years. These transactions have involved deals from around $20 million up to the latest offering of $100 million. So, there is clearly increasing demand for these transactions each year.”

Standard Chartered declined to provide a comment for the article.


¬ Haymarket Media Limited. All rights reserved.

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IWD Deal Analysis: IIX’s WLB6 Orange Bond helping women’s livelihoods in Asia | FinanceAsia

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On:
In: Asia, Finance, South-East Asia

In a growing regional trend, December 2023 saw the sixth issuance of Impact Investment Exchange (IIX)’s Women’s Livelihood Bond (WLB) Series, the $100 million Women’s Livelihood Bond 6 (WLB6).

Altogether the IIX, since 2017, has raised $228 million to support women’s economic empowerment in Asia, with the overall trend in deal size on an upward trend. FinanceAsia discussed the investors, the rationale and the processes involved in order to celebrate International Women’s Day (IWD) 2024 on Friday, March 9 and the drive towards diversity, equity and inclusion (DEI) across the region. 

The closing of WLB6 marked the world’s largest sustainable debt security and was issued in compliance with the Orange Bond Principle and aims to uplift over 880,000 women and girls in the Global South.

Global law firm Clifford Chance advised Australia and New Zealand Banking Group (ANZ) and Standard Chartered Bank pro bono as placement agents.

Proceeds from WLB6 will be used to promote the growth of women-focused businesses and sustainable livelihoods across six sectors: agriculture; water and sanitation; clean energy; affordable housing; SME lending and microfinance across India, Cambodia, Indonesia, Kenya and Vietnam. 100% of the $100 million proceeds designed to advance UN’s Sustainable Development Goals (SDG) 5: gender equality and 25-30% designed to advance SDG 13 — climate action.

Robert Kraybill, chief investment officer, IIX, told FA: “The Women’s Livelihood Bond (WLB) Series is a blended finance instrument that pools capital from public-sector development finance institutions and private-sector investors. The public sector investors provide risk-tolerant “first-loss” capital in the form of subordinated notes, while the private sector investors purchase the senior bonds.”

“The WLB Series targets a range of private sector investors seeking a combination of high impact with low risk and an appropriate return. From the outset, beginning with the WLB1, the bonds have attracted both family offices and institutional investors. Initially, this was skewed towards family offices. As the WLB issuances increased, we saw increased interest from institutional investors, such that over 90% of the WLB6 was placed with institutions,” added Kraybill. 

For WLB6, there were global investors on the deal including from the US, Europe and Asia Pacific (Apac). The WLB6 bonds comply with the EU and UK securitisation regulations, making it easier for European institutional investors to participate. For example, one of the investors was Dutch pension fund APG Asset Management which invested $30 million.

Kraybill said: “Throughout building the loan portfolios for the WLBs – from sourcing and screening to due diligence – we integrate traditional credit criteria with impact criteria. We look to invest in companies meeting our credit and financial criteria while delivering meaningful positive impact.”

“We are proud that we have not experienced any payment defaults or credit losses on any of the WLB loan portfolios, demonstrating the resilience of the high-impact women-focused businesses that we work with, even in the face of challenges posed by the Covid-19 pandemic. The first two bonds in the WLB Series – WLB1 and WLB2 – have matured and been fully retired, meeting all of their obligations to bondholders,” Kraybill added. 

The IIX, which is headquartered in Singapore and has offices in Australia, Bangladesh, Brunei, India, Indonesia, the Philippines, Sri Lanka and Vietnam, also tracks the impact outcomes generated by its investment throughout the life of the bonds and reports on the targets. WLB1 and WLB2 exceeded impact projections, according to IIX.   

Complex deal

Given the number of parties involved and a myriad of regulations and compliance, the deal was not easy to put together. 

Gareth Deiner, partner at Clifford Chance, explained to FA the law firm’s role in the deal: “We’ve been involved for several years on these transactions, and this is not the first woman’s livelihood bond that the IIX team has put together.”

Singapore-based Deiner continued: “Historically, we have acted on the trustee side, but we have been advising the lead managers of the transaction for the last three offerings. It’s approximately a three to four month execution process to make sure we get the documentation agreed and the structure in place. IIX do the underlying due diligence on the borrowers, which is necessary given that the financing is raised from the international capital markets. Together with their counsel, they work on the disclosure in the offering document for the bond transaction.”

“As counsel to the lead managers, we are responsible for the underlying contractual documentation for the notes and the offering, but it’s IIX who retain control over the loan documentation with the notes proceeds end-users, and putting the loan pool together. They’re doing due diligence on the on the underlying borrowers of the deal,” he explained. 

This is backed up by IIX’s due diligence. IIX’s Kraybill explained: “The financial due diligence conducted by our credit team is similar to that of other emerging market lenders. What sets us apart is the upfront impact due diligence and ongoing impact monitoring and reporting conducted by our impact assessment team. Our team screens potential investments against rigorous eligibility criteria to ensure they contribute to positive outcomes for underserved women and gender minorities in the Global South while often empowering women as agents of climate action.”

Navigating US legal rules and dealing with investors from around the world also added to the complexity. 

Deiner said: “Dealing with a wide range of investors, including qualified institutional buyers in the US, we needed to comply with US federal securities law, including limiting the sale of the notes to qualified purchasers under the US Investment Company Act. There were also certain structural considerations raised by the EU and UK securitisation regulation.”

“From a legal perspective, it was an interesting deal because there’s a wide range of highly technical substantive law, which required the input from specialists across the Clifford Chance network. We have the expertise across the globe and do a lot of sustainable financing work,” continued Deiner. 

“Recently we’ve advised on some market-leading and groundbreaking transactions in terms of bringing sustainability finance technology to capital markets transactions,” he added.

However, this deal, in particular involved social governance goals. 

Deiner explained: “What we like about this particular transaction is that so much of the Environmental Social and Governance (ESG) agenda is about the environmental (E) angle, such as green bonds related to carbon transition and climate action. That encompasses sustainable  development goal 13 of the UN Sustainable Development Goals (SDG).”

“However, you rarely hear about sustainable finance transactions that focus on the S and the G in ESG, which IIX champions. Each of the sustainable development goals (SDG) has its own hue, its own colour. This transaction focusses on SDG 5, which is gender equality, and are referred to as Orange bonds – orange being the hue for SGD 5. In addition, IIX has developed its own framework and principles to really drive that S in the ESG,” he added.

Tracking societal impact

There is still a key issue on how to track the impact of where the money ends up.

IIX’s due diligence process includes interviews with beneficiaries and stakeholders of investees,  using its own digital impact assessment tool to incorporate input from a broad group of female beneficiaries. This verifies impact claims while giving a voice and value to the women it is assisting, according to Kraybill.

He continued: “Our selection process for projects funded through WLB6 closely aligns with the objectives of The Orange Movement. Each of the bonds in the WLB Series adheres to The Orange Bond Principles, which focuses on empowering women, girls, and gender minorities, particularly in climate action and adaptation.”

IIX looks at the potential of each project’s mission, vision, goals, and business structure, to evaluate alignment with the core values of the WLB Series and The Orange Movement. Its impact assessment team conducts due diligence to ensure selected projects meet criteria outlined by The Orange Movement and contribute to promoting gender equity and addressing climate challenges in emerging markets, according to Kraybill.

With the rise of bonds connected to ESG and DEI, the scrutiny from investors is also increasing, especially with the prevalence of greenwashing. 

Clifford Chance’s Deiner said: “The legal landscape for green bonds and sustainability-linked bonds has evolved considerably in recent years, particularly regarding due diligence. When a company issues a green bond under a green bond framework, substantial work is required to ensure the bond’s integrity. This diligence has become a critical factor in investment decisions, as investors need to be confident that the environmental credentials are genuine and not merely an instance of greenwashing.”

“One of the key parts of the Orange bond initiative is achieving transparency in the investment process and decision, and the subsequent reporting, as the proceeds are going to an issuer who is on-lending it again, to, for example, a microfinance lender. It’s a combination of seeking an investment return and a view on the credit profile. The funds have specific objectives regarding capital allocation, and the appeal of the Orange bond aspect aligns with this focus,” Deiner added. 

$10 billion goal

The IIX has an ambitious goal of mobilising $10 billion by 2030 and optimism abounds. 

Kraybill said: “We remain optimistic about reaching our ambitious goal through sustained collaboration and concerted action, empowering women and girls worldwide while fostering inclusive and sustainable development.”

“Partnerships with the Orange Bond Steering Committee organisations, like the Australian government’s Department of Foreign Affairs and Trade (DFAT), the UN Capital Development Fund (UNCDF), Nuveen, and others, are vital in this endeavour. Together, we aim to build a gender-empowered financing system, mobilise new capital, and accelerate progress toward gender equality and women’s empowerment globally,” Kraybill added.

The Orange Movement is also building “Orange Alliances” at regional and national levels to bring together gender lens investors and other stakeholders. IIX is conducting training programs to train and certify Orange Bond verification agents.

“We’re introducing an “Orange Seal” for MSMEs and other organisations, which enhances their gender, DEI, and climate bona fides. We have expanded our transaction tagging functionality to include innovative finance instruments that adhere to the Orange Bond Principles framework. Furthermore, we’re eagerly anticipating the launch of the Orange Loan Facility, alongside numerous other initiatives to further the Orange Movement’s mission,” Kraybill said. 

He said: “We remain optimistic about reaching our ambitious goal through sustained collaboration and concerted action, empowering women and girls worldwide while fostering inclusive and sustainable development.”

The next bond could potentially be much larger than WLB6’s $100 million. 

Clifford Chance’s Deiner is also optimistic: “There’s a flow of transactions that we’re going to see over the next 12 months, and this an area that people are paying more attention to. The transactions have grown considerably over the years. These transactions have involved deals from around $20 million up to the latest offering of $100 million. So, there is clearly increasing demand for these transactions each year.”

Standard Chartered declined to provide a comment for the article.


¬ Haymarket Media Limited. All rights reserved.

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East Ventures, Temasek Foundation unveil three new tracks for Indonesia’s Climate Impact Innovations Challenge 2024

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  • For the entire US$ 634k reward swimming to pilot options in Indonesia, candidates vie for a$ 634k prize pool.
  • Enhanced vitality of the company space in creating a more resilient and sustainable future

East Ventures, Temasek Foundation unveil three new tracks for Indonesia’s Climate Impact Innovations Challenge 2024

The second edition of Indonesia’s largest climate tech innovations competition, the Climate Impact Innovations Challenge ( CIIC ) 2024, has been announced by East Ventures, a pioneering and market-leading sector-agnostic venture capital firm that has supported over 300 tech companies in Southeast Asia.

To test their solutions in Indonesia to address various ecological issues and lessen the effects of climate change, the applicants will compete for a total prize pool of US$ 634,620 ( Rp10 billion ).

The” Climate Impact Innovations Challenge 2023″ has piqued our interest and had measurable effects on the weather business. As a firm believer in online ecosystems and startup ecosystems, we think climate tech innovators are key players in developing solutions that address the issues facing today and help pave the way for a resilient and sustainable future. Avina Sugiarto, Partner at East Ventures, said,” We invite all weather tech entrepreneurs in the region and partners to join us in making positive changes that benefit Indonesia and beyond.”

” We are encouraged that the company space’s Climate Impact Innovations Challenge 2023 has sparked imagination and vitality in favor of a more responsible and resilient potential. According to Lim Hock Chuan, Head, Programmes, Temasek Foundation, CIIC 2024 may assist them in embracing new opportunities and working toward scaling up their answers that will benefit the Indonesian habitat and the location.

&nbsp, &nbsp, and CIIC 2024 are the three lines that CIIC 2024 focuses on this year.

    Energy Transition: New creative concepts and solutions that encourage the deployment of solar electricity and contribute to the reduction and elimination of carbon emissions, to aid communities and industries in moving in a low-cost, all-inclusive direction.

  • Sustainable Agriculture: New creative concepts and solutions that improve food production ( plant, cultivate, harvest, process ), improve agricultural practices due to climate change, and incorporate nature-based solutions that involve sustainable and replicable business models that improve farmers ‘ livelihoods and food security while lowering soil degradation and carbon emissions.
  • Round Market: New, creative concepts and solutions designed to improve waste management procedures and turn waste into useful materials, resources, and power, thereby reducing waste sent to landfills and for burning as well as plastic pollution.

CIIC 2024 may have a number of key agendas, including:

  • Application time ( March- June 2024 )
  • Application review ( June- July 2024 )
  • Finalist announcement ( July 2024 )
  • Mentorship ( August 2024 )
  • Grand Finale ( Sept. 2024 )

The CIIC, which was founded in March 2023, has been a catalyst for innovation and the creation of more responsible options. Over 330 candidates applied for the Challenge last year, and it came to an end with the Grand Finale, which was a part of the ASEAN Business and Investment Summit 2023 side function. FollowingOil ( Renewable Energy ), Qarbotech ( Food and Agriculture ), BANIQL ( Mobility ), and Waste4Change ( Ocean ), CIIC 2023 named four winners.

Interested parties may visit the CIIC site at climateimpactinnovations.com for more information.

(L2R): The winners of Climate Impact Innovations Challenge 2023, two representatives from BANIQL, AfterOil, Lim Hock Chuan, Head, Programmes at Temasek Foundation, Avina Sugiarto, Partner at East Ventures, two reps from Qarbotech, Waste4Change.

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Why the West’s resentment of China is so misguided – Asia Times

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Over the past few years, some Western commentators have proclaimed the “decline of China.” They argue China’s economy is failing, its youth are alienated and unemployed, it abuses human rights and represses its people, and its demographic decline means that China will never rise to surpass Western power.

The subtext of this focus on China’s problems is that Western domination of the world will continue, proving the superiority of the West’s political and economic ideologies.

These eulogies for China are premature, at best.

Economists in the West don’t fully understand Western economies, let alone China’s, and Western states have numerous fundamental problems of their own.

Drumbeat of negativity

China is experiencing economic headwinds as it transitions to a new model of economic development. It is also contending with Western economic and technological sabotage.

How well China manages these forces remains to be seen.

An objective analysis of China’s economy is required, but the constant drumbeat of negativity emerging from the West makes that difficult. Some of it is a concerted propaganda campaign, financed by the United States, to undermine America’s biggest competitor. But the trend also reflects the Western world’s racial and political anxieties and its profound insecurities about its own failures and decline.

For hundreds of years, the West has used imperialism and violence to construct an international system that ensures its prosperity and prioritizes its interests. Keeping the Global South subservient to a Eurocentric world order has been critical to this strategy.

Israel’s attack on Gaza, killing tens of thousands of Palestinians – along with the associated American and British bombings of Yemen, Iraq and Syria – are contemporary manifestations of this phenomenon.

China’s rise is the first time in modern history that a non-European state beyond Western control is economically eclipsing the West. The “yellow peril” is back, and the West will now need to compromise and negotiate with a powerful, non-Western entity.

It cannot simply impose its will on the Global South, though the American campaign against China is an effort to re-establish this status quo.

To the West, this was not how it was supposed to be.

China forged its own path

According to American political scientist Francis Fukuyama, the end of the Cold War was the “end of history,” meaning that liberal democratic capitalism is the final and best form of government for all nations.

This political and economic system, embodied by the West (especially the United States), was supposedly the only path to success. The West was held up as pinnacle of achievement that the entire world should emulate.

China disproved this narrative by achieving extraordinary economic and technological developments with unprecedented speed, and it did so by following its own path. It is a major player in the world economy, but has refused to become a Western vassal state.

At the same time, the Western world has failed in many measurable and obvious ways, particularly since the 2008 financial crisis. Europe is facing economic stagnation, demographic decline and increasingly toxic politics.

Western youth are alienated and pessimistic. The West’s failure to destroy Russia’s economy with sanctions after its invasion of Ukraine is evidence of decreasing Western economic power. Its absolute moral failure in Gaza is tragically apparent.

American decline

But the most spectacular and consequential example of Western decline is the United States. On paper, the US economy is performing moderately well. In practice, under-employment and economic inequality are posing major problems.

Many Americans are angry, disillusioned and polarized. American politics are dysfunctional and blatantly corrupted by money. Even the highest judiciary has been accused of corruption.

In the next presidential election, Americans may well re-elect Donald Trump, someone who epitomizes this corruption.

The US government also continues to stir up violence and instability around the world rather than dealing with its own enormous domestic problems.

China’s achievements

Over the past 20 years, China’s transformation has been astonishing. Its modern cities feature marvels of architecture, well-constructed infrastructure, phenomenal public spaces and are clean and safe, in contrast to the crumbling infrastructure and dangerous streets of some American cities.

By purchasing-power parity, China’s GDP is currently 25% bigger than that of the US; the International Monetary Fund estimates it will be 40% larger by 2028.

China is responsible for 35% of the world’s manufacturing compared with 12% for the US. China’s economies of scale and technological advancements mean that renewable energy may become affordable to billions of people all over the world, offering viable climate action.

If China really does fail – something those Western commentators perpetually claim is imminent – it would have serious consequences for the rest of the world.

Western hostility toward China reflects the grudging realization that the West may not be the pinnacle of achievement after all. Rather than possibly learning from China’s successes, Westerners have chosen resentment borne of a sense of frustrated superiority.

The modern world is a pluralist global system. Different states will follow different paths to development and experiment with different forms of government. The West does not have all – or maybe any – solutions to the many problems the world is currently facing.

China is pursuing its own economic and social goals. These may not accord with Western models, and China may stumble as it follows its own path.

But cheering on those stumbles won’t make for a more peaceful or cooperative world, nor will it compensate for Western failures.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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