Cenergi SEA Berhad: Driving sustainable energy solutions in Southeast Asia

  • may be promoting sustainable solutions at future ISES.
  • Cenergi has secured a total of 65 green energyprojects, with 25 of them being new jobs.

Cenergi SEA Berhad: Driving sustainable energy solutions in Southeast Asia

Cenergi SEA Berhad: Driving sustainable energy solutions in Southeast AsiaCenergi SEA Berhad, a division of UEM Lestra Berhad, is a market leader in Southeast Asia for clean energy alternatives. We specialise in different renewable energy projects, including gas to electricity and bioCNG from palm oil mill waste, carbon pellets/briquettes from empty fruits number ( EFB), solar, energy reliability and small hydro jobs. Cenergi is poised to be at the vanguard of Malaysia’s clean energy environment with a total capacity of 143 MW from operating resources and initiatives in development.

The Approach and Vision of Cenergi SEA for Sustainable Energy

Cenergi’s presence at the 6th International Sustainable Energy Summit ( ISES ) 2024 aims to enhance our industry presence, foster collaborative efforts, and advance our mission of promoting sustainable energy solutions. Through communication, knowledge exchange, plan advocacy, investment exploration and CSR activities, we seek to consolidate our role as a key player in the transition towards a sustainable energy future in Southeast Asia.

The organization has secured 25 new renewable energy projects, which are already in various stages of development and pre-development. These jobs encompass a diverse collection of technology, including 16 Biogas Power Plants, 1 Big Scale Solar Farm, 1 Rooftop Solar setup, 4 Biomass Pellet/Briquette Plants, 2 Little Hydro Power Flowers, and 1 BioCNG Plant.

To complement the renewable energy business, Cenergi also participate&nbsp, in the selling and trading of renewable energy certificate ( REC ) and carbon credit. The company has been offering biogas and solar RECs, and to market technology-based carbon credits in the near future.

Innovation and Technology

Our sustainable energy projects are fueled by a variety of innovative technologies, which show how committed we are to reducing carbon emissions, improving energy efficiency, and promoting the use of renewable energy sources. The various systems we use are briefly summarized in the following table.

Biogas Technology:

Cenergi is the largest developer, owner and operator of biogas power plants in Malaysia. Our biogas power plant in Jerantut, Pahang, recognized by the Malaysia Book of Records, is the biggest palm oil mill effluent ( POME) grid-connected biogas power plant in the country, with a capacity of 5.5 MW. We utilise anaerobic digestion to transform agricultural waste, POME, and other organic materials into biogas, which is then used to generate electricity.

Solar Photovoltaic ( PV ) Systems:

Cenergi is actively involved in the development and deployment of solar PV systems, ranging from large-scale solar farms to rooftop installations. The company utilizes advanced PV technology, including high-efficiency solar panels and smart inverters, to maximize energy output and system reliability.

Biomass Pellet:

Cenergi converts empty fruit bunches ( EFBs ), a significant byproduct of palm oil production, into pellets and briquettes. This process maximizes biomass resource, turning waste into&nbsp, valuable products. EFF pellets and briquettes are a renewable and sustainable alternative to fossil fuels because they release less greenhouse gases and pollutants than traditional fossil fuels.

BioCNG:

In Sabah, Cenergi is working on its first bioCNG project, which converts POME biogas into compressed biomethane or bioCNG. The BioCNG produced would be a direct substitute for natural gas as a fuel source because it would have similar characteristics to fossil fuel-based natural gas.

Small Hydro:

Cenergi also makes small-scale hydropower investments using the “run-of-river” idea. Small hydropower contributes significantly to the achievement of the National Energy Transition Roadmap ( NETR )’s renewable energy targets, which are crucial for long-term decarbonization scenarios.

Environmental and Social Impact

The ecosystem projects led by Cenergi have had significant effects on both the environment and the local communities. For example, the implementation of enclosed anaerobic treatment systems for biogas-to-electricity projects has effectively avoided methane emissions, mitigated odor, and improved water quality. These initiatives have also helped to boost the local economy by generating income through the sale of carbon credits and by fostering job opportunities and skill development for local communities.

Adoption Challenges and Policy Recommendations

High initial capital costs, grid integration and infrastructure challenges, regulatory and policy barriers, and technological limitations are the main obstacles that the industry faces as it strives to become more popular for renewable energy projects. To address these challenges, effective policies such as feed-in tariffs ( FiTs ), power purchase agreements ( PPAs ), and net energy metering ( NEM) have proven successful in promoting renewable energy adoption. To increase solar energy systems ‘ overall performance, lower costs, and maintain research and development in solar and battery storage technology is necessary.

Cenergi SEA Berhad remains committed to driving sustainable energy solutions in Southeast Asia through innovative technologies, strategic partnerships, and policy advocacy. By addressing the environmental, economic, and social aspects of renewable energy projects, the company aims to contribute to a cleaner and greener future for the region.

The 6th International Sustainable Energy Summit ( ISES ) 2024, a key event for sustainable energy dialogue and innovation, is set to take place on August 20-21, 2024, at the Kuala Lumpur Convention Centre (KLCC). The summit will be officiated by Malaysia’s Prime Minister, Dato ‘ Seri Anwar Ibrahim, who will be serving as the country’s ambassador to the Sustainable Energy Development Authority ( SEDA ) Malaysia. The event, which has the theme” Accelerating Energy Transition Through Innovation,” reflects Malaysia’s commitment to leading the ASEAN region in the global energy transition through novel approaches and technologies.

The summit will have a crucial role in supporting Malaysia’s ambitious goal of achieving a 70 % renewable energy mix in power generation by 2050, as well as achieving carbon neutrality by the same year. Attendees can expect a series of Plenary Sessions and Deep Dive Workshops led by prominent energy experts and leaders, covering topics such as green mobility, grid modernization, and the integration of Environmental, Social, and Governance ( ESG) principles into investment and financing strategies. Visit ises. org. my for more information.


Cenergi SEA Berhad’s CEO is Hairol Azizi Tajudin.

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Successful conclusion of Endeavor’s Future Forum 2.0 – A game changer for Malaysia’s startup ecosystem 

  • Over 3000 business rulers, investors &amp, businesses attended the conference
  • Participants gained insights into M’sia’s business habitat through key discussions

Peter Murray, Head of Financial Services Industry, ASEAN. AWS, Normal Vanhaecke, Group CEO, Cradle Fund Sdn Bhd, Adlin Yusman, Managing Director, Endeavor Malaysia, Jesse Chooi, Scaleup Development, MDEC and Hassan Alsagoff, Regional Head of Loyalty & Marketing ,Grab Malaysia

With Cradle Fund, through the MYStartup initiative, as its patron, along with support from Grab Malaysia, GXBank, Amazon Web Services ( AWS), and Malaysia Digital Economy Corporation ( MDEC ), Endeavor’s Future Forum 2.0 successfully concluded on Tuesday, 13th August 2024, at the Asia School of Business. The occasion maintained a strong participation, with over 300 business leaders, companies, and traders in attendance, matching next week’s numbers.

This consistency, according to Endeavor, demonstrates that the success of the Future Forum last year was not just a case of luck; it was a result of the organization’s continued commitment to bringing in top speakers who have a strong impact on the entrepreneurial community.

This year’s Future Forum 2.0 featured a lineup of speakers, including Endeavor Emeritus Board Member Nazir Razak ( chairman of Ikhlas Capital ), Endeavor Mentors such as Joel Neoh ( co-founder of First Move &amp, Fave ) and Tunku Alizakri Alias ( Former chairman of Penjana Kapital ), Endeavor Entrepreneurs including Aaron Patel ( founder of iHandal ) and Kian Seah ( founder of HHI), as well as Endeavor Pre-ISP candidates such as Nicholas Pinn Yang Lim ( co-founder of Good Foodie Media ), Nadira Yusoff ( co-founder of Kiddocare ), Nurul Syaheedah Jes Izman ( co-founder of Pantas ), and Mark Koh ( co-founder of SUPA ).

The list of speakers continued with Norman Vanhaecke ( group CEO of Cradle ), Fadrizul Hasani ( CTO of GXBank ), Karamjit Singh ( founder of Digital News Asia ), Peter Yong ( founder of Mr. Money TV ), Koichi Saito ( founder of KK Fund ), Sophie Chiu ( principal at AppWorks ), Warren Leow ( CEO of Pixlr Group ), Gerardo Salandra ( CEO of Respond. io ), Rene Menezes ( executive director of Remix Solutions ), Roshan Kanesan ( producer &amp, presenter at BFM), and Fahim Surani ( Solution or Systems architect at Amazon Web Services ).

The attendees, according to Endeavor, gained valuable insights into Malaysia’s business ecosystem, from understanding the Gen AI rebellion to understanding the key factors that entice foreign investors to the local landscape. Additionally, they discussed ways to incorporate ESG into firm plan and learn about the brand-new era of marketing and branding. Importantly, the event’s Legitimate Clinic, in partnership with Zaid Ibrahim &amp, Co ( in association with KPMG Law ), provided personalised legal counsel to companies, reinforcing the agency’s commitment to empowering local companies.

The consistently high attendance for Future Forum 2.0, according to Adlin Yusman, managing director of Endeavor Malaysia, confirms that our technique to developing relevant topics and engaging speakers resonates with the business community. It’s not just about a one-time victory, it’s about continually delivering value and fostering an environment where creativity flourishes”.

He continued,” The company is thrilled by this week’s success and looks forward to returning in 2025 with an even more remarkable Future Forum 3.0.” As Endeavor looks forward, we will continue to support high-impact business owners and foster a vibrant company habitat. The success of Coming Forum 2.0 shows how well on track this goal is, Adlin said.

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MYCentre4IR and Bursa Malaysia launch Global Innovation Challenge to accelerate ESG adoption

  • Opportunities for pilot projects will be provided for the five most promising thoughts.
  • attempts to discover creative solutions that address issues in the sector.

Partnering with Bursa Malaysia, one of Southeast Asia's largest bourses, and powered by UpLink, The Forum’s open innovation platform, this Innovation Challenge leverages the strengths and networks of these prestigious organisations.

leng The Malaysia (Innov Centre4IR tion ESG Ch Innovation llen Challenge ( e) as bee lau Innovation Challenge ) has been ched, accor d ng to t h launched, according to the Malaysia Centre4IR.

This initiative, in collaboration with Bursa Malaysia, is powered by the World Economic Forum’s ( The Forum ) UpLink platform, which invites startups and entrepreneurs from Malaysia and around the world to submit their cutting-edge digital solutions to enhance the efforts of five Malaysian Public Listed Companies ( PLCs ), namely CJ Century Logistics Holdings Bhd, Globetronics Technology Bhd, Malayan Banking Bhd, REDtone Digital Bhd, and Sunway Innovation Labs ( representing Sunway Group ).

( An expression of interest was made following the five PLCs ‘ interest following an ESG Tech Based Innovation Workshop held in Bursa Malaysia. )

Empowering entrepreneurs, driving shift

This Innovation Challenge seeks to join beautiful thoughts and promising startups with Malaysian PLCs in various sectors such as agriculture, construction, economic services, logistics and production. The issue seeks to find creative solutions that address business issues, which might boost Malaysia’s economy and the environment, and could also boost competition.

Strategic engagement

Partnering with Bursa Malaysia, one of Southeast Asia’s largest bourses, and driven by UpLink, The Forum’s available technology system, this problem leverages the strengths and networks of these renowned organisations.

The association with UpLink will help the problem have a global reach and draw high-quality submissions from all over the world. The Innovation Challenge promotes the development and implementation of systems that advance ESG principles while also providing a significant opportunity for PLCs to investigate business venture capital practices in line with Pillars 2, 4, and 5 of Bursa Malaysia’s Public Listed Companies Transformation Programme. This initiative helps PLCs become more responsible in addition to supporting businesses and entrepreneurs.

Five arches, which include:

  • Creating Purpose and Performance-Driven PLCs,
  • Being Responsible, Socially Accountable and Ethical PLCs,
  • Increasing investor ties and customer management,
  • Being Online Enabled, and,
  • Contributing towards Nation Building

Focus places

The Innovation Challenge places an emphasis on net-zero solutions and operation technology:

CJ Century Logistics Holdings Bhd

  • Data set for shipping fleet management
  • predicted model for conservation planning and information analysis

Globetronics Technology Bhd

  • Performance progress in manufacturing
  • AI-assisted online manufacturing helpers

Malayan Banking Bhd

  • Building environment endurance: Options in climate mitigation and adaptation
  • Waste to wealth: assisting SMEs in cutting back on their ongoing waste costs

REDtone Digital Bhd

  • Making use of the Internet of Things ( IoT ) for smarter farms in Malaysia
  • Unlocking AI’s potential for Malaysian agriculture

Sunway Group is represented by Sunway Innovation Labs.

  • Preventative health and well-being
  • Circular economy

Application and selection process

Applications are now open via UpLink and will close on 31 Aug. A panel of industry experts and representatives from MYCentre4IR, Bursa Malaysia, and the World Economic Forum will evaluate the submissions. On November 7, the Innovation Challenge will culminate with a Demo Day at Bursa Malaysia, where five of the most promising ideas will be given funding opportunities for pilot projects and access to a network of business leaders and investors.

For more information about the Malaysia Centre4IR ESG Innovation Challenge and how to participate, please visit the challenge page here or contact]email&nbsp, protected].

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Peninsular Malaysia Labour Dept recognises Merchantrade Asia as an Approved Issuer of a Designated Payment Instrument

  • immigrant employees tasked with sending out US$ 1.8 billion in 2023.
  • ‘ First-to-last-mile ‘ online income solution ensures solid assistance at every stage for customers

Signing up migrant workers at an Oil Palm Plantation.

The Jabatan Tenaga Kerja Semenanjung Malaysia ( Peninsular Malaysia Labour Department ) has approved Merchantrade Asia Sdn Bhd as an approved issuer of a designated payment instrument for the purpose of wage payments. This is Malaysia’s largest Money Services Business ( MSB ) operator and a leading player in the digital payments industry.

This is in line with the Minister of Human Resources ‘ Employment ( Recognized Approved Issuer of a Designated Payment Instrument ) Order 2024.

Merchantrade, which collaborated with Visa to launch its composite Merchantrade Money e-wallet in January 2018 and targets both Malay and migrant workers, is benefited by the approval. Recognizing the significant challenges employers face in opening traditional bank accounts for migrant workers and other unbanked segments, it has gradually expanded the features of the card for this segment to its current stage with features such as remittances, mobile top-ups,, personal accident insurance coverage with basic plan as low as for RM5 per month, QR payments, P2P transfers, online purchases, multi lingual application and customer service with eight languages including English, Malay, Nepali, Indonesian, Bengali, Tamil, Chinese and Burmese and with Bank Negara approval to hold up to US$ 4, 517 ( RM20, 000 ).

By allowing direct salary transfers to staff ‘ Merchantrade Money e-wallet, the JTKSM approval will transform the payment method for businesses. From big MNCs to SMEs, Merchantrade said its answer will be a game-changer across different industries, including estate, manufacturing, construction, service, and local work.

Peninsular Malaysia Labour Dept recognises Merchantrade Asia as an Approved Issuer of a Designated Payment Instrument” Digital wage payments are gaining momentum worldwide, and we are proud to be leading this evolution in Malaysia”, said Ramasamy K. Veeran ( pic ), founder and MD of Merchantrade.

Following our expansion in the payment and e-wallet industries, we made a natural transition to online wage solutions, which addresses yet another pressing issue for Malaysian foreigners and other underbanked industries. We have developed a strong ecosystem specifically designed for this market over the years, and Merchantrade is strategically positioned to facilitate the transition from cash to online wage payments, Ramasamy continued.

Merchantrade has established itself as a trusted brand among the migrant worker community, recording an outbound remittance turnover of US$ 1.84 billion ( RM8.15 billion ) in 2023. The company has also served over 5 million users since its inception, through its online and brick-and-mortar programs, across its payment, forex trade, e-wallet, plan, and telecommunications services.

The company’s ecology includes a vast system of natural touchpoints, with 95 branches and over 490 representative locations globally serving as support centers for both its amazing income disbursement and e-wallet platforms, as well as a dedicated on-ground team that assists both employers and employees in urban and rural areas. The company’s ‘ first-to-last-mile’ approach ensures comprehensive support at every step of their journey, from onboarding and training to after-sales service.

Through a collaboration with AmBank Islamic, the integration of Merchantrade Money e-wallet ( with RM20, 000 wallet size ) with an AmBank Islamic Hybrid Current Account-i (hCA-i) ( RM30, 000 wallet size ) allows users to access a combined limit of up to RM50, 000, making it the first of its kind in Malaysia.

Users can make cashless and withdrawals at both physical stores and online using a Visa prepaid card when using a Visa card.

From an ESG perspective, this solution supports Merchantrade’s mission of promoting equitable financial services and is closely aligned with the government’s digital transformation and sustainability agenda, as well as Malaysia’s Financial Inclusion Framework FY2023–FY2026.

Merchantrade said its solution will be a game-changer across various industries, including plantation, manufacturing, construction, service, and domestic work.

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Natixis-affiliated Ostrum AM creates new transition department; aims to expand FI offering in Asia | FinanceAsia

Paris-based Ostrum asset management (AM), an affiliate of Natixis Investment Managers, has appointed Nathalie Beauvir to head up its newly created sustainable transitions department.

A spokesperson confirmed to FinanceAsia that Beauvir had been in her new role in Paris since the start of the job transition in May.

The newly established department, according to a July 10 press release, consists of five environmental, social and governance (ESG) experts and two corporate social responsibility (CSR) experts.

They will be responsible for strengthening Ostrum AM’s strategic positioning on ESG; optimising the interdependence of investment policies including exclusion, engagement and voting; and developing offerings with new thematic ranges.

The department reports directly to the firm’s chief executive officer (CEO) office.

CEO Olivier Houix commented in the press release that the team expects Beauvir to establish Ostrum AM as a “committed partner for transitions” for stakeholders, in terms of investment strategies and development financing.

Beauvir was promoted from her previous role as head of sustainable bond analysis and research at Ostrum AM,where she was involved in the launch of the firm’s climate and social impact bond fund.

Asia expansion

The Ostrum AM team currently has five portfolio managers and analysts in the Asia Pacific (Apac) region, led by Rushil Khanna, head of equity investments, within Natixis Investment Managers’ Singapore local operations.

Currently, the team has a specific focus on equity investments, while Ostrum AM also aims to provide fixed income expertise locally in Southeast Asia, with the upcoming arrival of a fixed income portfolio manager, the spokesperson told FA.

Globally, Ostrum AM manages around €40 billion ($43 billion) in green, social and sustainability (GSS) bonds, out of its €402 billion in assets managed for institutional clients as of end-March.


¬ Haymarket Media Limited. All rights reserved.

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Ficus SEA fund invests US9,000 in Klean to boost sustainable recycling across Asean

  • Funds will be used to develop system of machines, enhance local operations
  • Klean now operates 100 RVM devices across Malaysia, Indonesia, Singapore, &amp, Fiji

Ficus SEA fund invests US$429,000 in Klean to boost sustainable recycling across Asean

Ficus Capital ( Ficus ), the world’s first Islamic Environment, Social, and Governance ( ESG-i) venture capital firm, announced that it will invest US$ 429, 000 ( RM2 million ) in Klean, a green technology sustainable recycling business owned by Janz Technologies Sdn Bhd.

In a statement, the company said this investment, made through Ficus’s flagship Ficus SEA Fund, will support the Malaysia-founded company’s initiatives in container recovery, expanding its network of reverse vending machines ( RVMs) and enhancing its regional operations in Malaysia, Indonesia, Singapore, and Fiji.

Klean encourages people to recycle empty plastic containers through the use of a sophisticated digital container deposit system based on artificial intelligence ( AI)-based reverse vending technology. The company encourages active involvement in recycling efforts by satisfying customers with points that can be exchanged for rewards. Moreover, its RVMs hold the World Green Tag Certification, ensuring the highest specifications of environmental sustainability and performance. &nbsp,Ficus SEA fund invests US$429,000 in Klean to boost sustainable recycling across Asean

Our investment in Klean represents our continued commitment to supporting businesses that operate in accordance with ESG-i principles, according to Ficus Capital managing partner Abdullah Hidayat Mohamad ( pic ). As global awareness of social and environmental issues grows, so does the need for responsible investment options that conform to moral and religious principles.

The ESG-i field “presents the intersection of these trends, giving investors the opportunity to make morally responsible and effective investments while upholding Muslim financing principles,” he continued.

According to Fortune Business Insights, the global green technology and sustainability market is projected to grow from US$ 19.83 billion ( RM92.5 billion ) in 2024 to US$ 83.59 billion ( RM390 billion ) by 2032, at a compounded annual growth rate ( CAGR ) of 19.7 percent. Major growth is anticipated, particularly in developing markets and emerging markets.

Nick Boden ( pic above ), co-founder &amp, CEO of Klean, said,” Ficus’s investment in Klean is a vote of confidence in the company’s future. This extra funding might become a significant contributor to our expansion. Our goal and Ficus ‘ commitment to sustainable and ethical investment are perfectly aligned, enabling us to increase our network of RVMs and strengthen our regional operational presence.

He added that Klean chose Ficus to serve as the agency’s head institutional buyer because of their closeness to the company’s objectives. ” First, they specialise in Shariah-compliant ESG investing, which resonates with our principles. Our designed growth into ASEAN areas is properly complemented by their strong appearance in Southeast Asia. This provides a significant level of trustworthiness and potential for future support because the fund is supported by Mavcap and the Malay government,” said Boden.

Green recycling technology has the potential to revolutionise different industries, including clean energy, sustainable transport, waste control, and power performance, thereby fostering a cleaner, greener future for all.

Equipped with cutting-edge AI systems, Klean’s Smart RVMs include a device learning-enabled hose worthy of recognising models of stored containers. This makes intended advertising available and allows the shop to recover their container’s data. Moreover, the machines quickly identify the type of materials and sort it into individual boxes, optimising recycling operations. Now, there are 100 RVM products across Malaysia, Indonesia, Singapore, and Fiji.

Our cutting-edge systems, according to Boden, “enables us to live in a cleaner, greener future by facilitating the disposal process as well as providing useful data and insights.” We are looking forward to having a significant impact on the environment and the communities we serve with this relationship and are excited about the opportunities it may offer.

Complementing these RVMs is the Klean the World mobile software, which allows extractors to scan QR code, obtain Klean items, and unlock benefits. The app uses core user data to create targeted, precise marketing campaigns. Additionally, Klean’s data and reporting capabilities allow businesses to track RVM data and ESG reporting in real-time using the Klean dashboard, providing businesses with detailed information for CSR reporting and data monetisation channels.

Ficus SEA Fund was launched in November 2021 with a focus on accelerating the growth of high-potential technology startups across ASEAN in sectors such as logistics, fintech, healthtech, e-commerce, edutech, greentech, big data analysis, and cloud services. The fund aims to support innovative businesses that have a positive effect on society and the environment. It focuses on three primary concepts: Shariah principles, sustainable growth, and ESG.

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Temasek has S billion in sustainability investments. Should you put your money in such stocks too?

According to Ms. Tan of OCBC, businesses are more tenacious if they are run properly, prepared for obstacles ahead, and are considering potential risks and opportunities.

As more states develop laws, money is likely to move to companies with robust statements on sustainability, she added.

Investing effectively is expected for businesses, companies and institutions, said&nbsp, Mr Stephen Beng, mind of ESG at Phillip Capital Management.

” But most importantly, it’s ) what our world needs if we want to continue eking out the many advantages of the habitat services our natural earth provides.”

HOW TO GET INTO SUSTAINABLE Opportunities

Mr. Ling of DBS advised consumers who want to create a lasting investment portfolio to conduct their own research and choose the issues that are most important to them.

The company’s carbon footprint, the company’s use of green or sustainable energy sources, and the fair pay of its employees are some questions to ask.

According to Mr. Ling, various factors, such as board member visits and minority shareholder privileges, may also be pertinent.

According to him,” It is important to know that even the most socially responsible people are not possible to tick all the right boxes,” adding that there may also be instances of false reporting.

Ms. Koh of Standard Chartered outlined three typical methods that financial traders use. The first is exclusions, where consumers avoid questionable industries like coal and wagering to fit their values.

The second is ESG connectivity, which acknowledges that non-financial risks and opportunities may be financially content to an expense.

The last one is focusing on conservation elements such as climate change mitigation, water and energy move.

Consumers do have the ability to build more resilient portfolios with ESG integration because they can take into account a wider range of risks and with lasting themes, she said.

OCBC’s Ms Tan pointed to exchange-traded resources that have been screened for ESG factors as a practical way to invest effectively.

The lender has a collection of impact investing and electric vehicles. The past has a one-year annualised profit of 23.08 per share, while the latter reported 14.02 per cent for the same sign.

These do not necessarily reflect the full range of market return expectations for sustainable investments, but they do serve as an example of how sustainable investing does n’t always translate to lower returns, according to Ms Tan.

MISALIGNMENT, GREENWASHING

Retail investors should be aware of misleading and changing global conservation standards, Ms. Tan continued.

According to her,” Cash that were previously regarded as sustainable may no longer qualify,” making it challenging for traders to identify sustainable possibilities. Local instructions and global regulations can give investments credibility and quality.

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Why global uncertainty won’t undermine transition goals | FinanceAsia

When FinanceAsia editorial board member, Sunil Veetil, took on his Singapore-based leadership role as head of Commercial Banking Sustainability for Apac at HSBC back in summer 2022, Asia was in the throes of pandemic uncertainty. Market to market, the approach of each governing authority proved to be heavily nuanced: Singapore had not long lifted restrictions to social gatherings and would soon abandon the mask mandate; while Hong Kong’s decision makers would deliberate for a further seven months before considering any such easing.

Yet, with hindsight being 20/20 (some may recoil at reference to the fateful numerical sequence), there was a sense of steadiness – albeit slow – in the unravelling of pandemic protocol which sits in stark contrast to today’s atmosphere of fast-paced-but-frequently-wavering global political and socioeconomic uncertainty. With over half of the world going to the polls this year – and a lot riding on upcoming election outcomes including France’s hung parliament and the final months of campaigning in the US; geopolitical complexities and tensions are pervading all market developments, not least the macroeconomic and inflationary outlook.

Reassuringly, however, Veetil is resolute in his resolve that global climate aspirations will forge ahead in spite of current conditions. “When you talk climate, you have to look long term,” he told FA. “Whilst there are short-term disruptions and changes – some of which have been positive; for example, the supply chain dispersion that has been taking place across the Asian region – it’s important to view climate from a longer perspective.”

He pointed to the outcomes of last November’s COP28 UN Climate Change Conference in Dubai, which served as a global stocktake of progress achieved by key economies towards the goals of the Paris Agreement, at the halfway point to their ultimate delivery by 2030. While the event publicly affirmed failure in capacity to limit global warming to 1.5 degrees Celsius by the end of this century; for the first time, it achieved consensus among all 196 heads of state and government officials to sanction the “beginning of the end” of the fossil fuel era, with efforts to eradicate their use by 2050. The conference laid the ground for a “swift, just and equitable transition, underpinned by deep emissions cuts and scaled-up finance”, a strategy which complements HSBC’s own ambitions to align its financing portfolio to net zero by 2050, as announced by the bank in 2020.

Climate management, Veetil explained, involves tackling a “perfect triangle” of challenges: politics, climate and the overall socio-economic picture. “The socio-economic impact of climate upon people is becoming all the more evident as we proceed… and to bring this all together, is the flow of capital.” He noted that while a lot of climate policy frameworks and trendsetting comes from Europe, the impact – “where the rubber hits the road” – is in Asia “and this is where the complexity is.”

Expanding on his comments for FA’s analysis of Asia’s debt capital market (DCM) activity, in which sustainable transactions were highlighted as playing an increasingly significant role within regional DCM dealmaking, Veetil said that typically, it continues to be the larger regional entities who lead the way in terms of raising significant capital to support sustainability aims. “The large tickets will always be driven by the sovereigns; and then it’s usually state-owned-enterprises (SOEs) or those large-cap private operators active in oil and gas or power and utilities, who are signing the big-ticket transactions.”

This seems to have been the case in 2024 so far, with Asia’s main players pioneering innovative climate transactions. In February, Japan followed up on its 2021 introduction of a transition finance framework by auctioning the world’s first sovereign climate transition bonds as a financing tool to support market growth alongside industry decarbonisation; while during the same month, HSBC participated in the first global multi-currency digital green bond offering, issued in Hong Kong.

“However, we are seeing green loans and sustainability-linked loans (SLLs) pick up at the mid-level and below this, in response to sustainable supply chain requirements. Of course, Asia is a supplier to the world.”

Veetil noted how European and North American buyers have become accustomed to outsourcing their emissions to Asia and that this had contributed some positive social and economic repercussions across the region, including an overall rise in income levels. With increasing pressure to report on and regulate sustainability, he explained that Asia-based manufacturers are not only on top of scope 3 metrics, but are pushing for capital expenditure (capex) to contribute to longer-term sustainability: to counteract those emissions that extend beyond the products themselves such as packaging, as well as manufacturing machinery. 

“Take a textile manufacturer that supplies to one of the big fashion brands. It’s not just that they want a sustainable supply chain and a robust working capital requirement; they’re also looking at how to install a wastewater treatment plant or rooftop solar. They are actively seeking capex investment plus working capital that is sustainable.”

Additionally, he highlighted the emergence of a circular economy to facilitate long-term sustainability, as being a growing trend: “Look at the battery ecosystem for example, a huge industry is developing around the recycling of batteries – additionally the recycling of solar panels, turbines and so forth is being considered. The recycling industry is becoming larger as ultimately, unless there is a circular economy around it, resources will be wasted. New action is being taken to develop a fully circular product lifecycle.”

The role of tech

Veetil emphasised various strides made across the field of technology, as being key to the future direction of the sustainability market. He commended Japan’s move to funnel over 55% of the proceeds from its recent climate transition issuance into research and development (R&D). “The future impact of investment going into research is set to be significant,” he said, noting the market’s action to invest in and develop domestic hydrogen production.

“Hydrogen has real potential to drive transition across hard-to-abate sectors such as steel, construction and aviation. But currently the market is ‘grey’ as it requires coal power to extract it from H2O.” He added that China and India are also investing heavily in the development of hydrogen. “It’s a space to watch.”

Climate-related research and technology is one of the areas which HSBC’s New Economy initiative aims to support. Since June last year, the bank has launched two fundraising strategies in Asia to invest in early-stage high-growth and tech-focussed businesses, to promote regional innovation. The first strategy, a $3 billion New Economy Fund (NEF) targets opportunities in Hong Kong and the surrounding Greater Bay Area (GBA), while a more recently launched $200 million vehicle targets investment across Singapore and Southeast Asia. Last month, the latter signed its first dedicated social loan to support Vietnamese venture-backed biotech start-up, Gene Solutions, which aims to enhance the accessibility and affordability of essential healthcare services across Southeast Asia. Another recent contribution included a $30 million green and social loan to Indonesia’s acquaculture and intelligence start-up, eFishery, which works to empower smallholder fish and shrimp farmers through tech, by increasing feed efficiency and reducing waste.

Veetil agreed that there is a strong socio-economic angle to sustainability developments in Southeast Asia, offering the example of electronic vehicle (EV) two-wheelers: “In certain areas in Southeast Asia (such as Vietnam and Indonesia) – as well as India, the majority of the population can’t afford to buy cars. We are going to see EV two-wheelers becoming more prevalent, popular and impactful… In fact, this is already happening and will continue to do so in the short- to medium-term.”

He added that the technologies emerging around carbon capture also offer real potential, but they “haven’t yet reached a sweet spot for mass adoption.”

Regulatory developments

But perhaps the most influential factor set to shape the sustainability landscape to come, is regulatory development and with it, clarity around how to deliver and enact a shared vision.

“What I am monitoring most closely on the regulatory side of things, is progress around the development of a country taxonomy,” Veetil disclosed.

“Reporting requirements are evolving quickly. Markets such as Hong Kong and Singapore have been very much at the forefront of this, but huge strides are also being made in geographies such as China and India, with new reporting requirements being introduced for listed companies.”

Singapore’s Accounting and Corporate Authority (Acra) together with Singapore Exchange Regulation (SGX RegCo) have mandated that listed companies start disclosing their climate impact in a phased manner, from financial year 2025.

“Over the next three years, most companies based in Singapore will report their climate data, which will certainly have an impact on the corporate mindset operating in the region,” Veetil said.

“Similarly, regulation being introduced elsewhere, such as in Europe, is taking effect globally. Take for example the new European deforestation regulation that has been published; as well as the carbon border adjustment mechanism (CBAM), which will soon take effect.”

“This is where we need a unified body to monitor and manage the direction of shared sustainability efforts. Currently this is something that is missing.”

Veetil suggested that various international entities are exploring options; and he proposed that efficacy could be found through a consortium of international central banks; or an governmental body such as the United Nations (UN) forming a platform involving corporates and financial institutions.

“We live in a very seamless economy, regulations in one country will definitely have an impact on the other.”

 


¬ Haymarket Media Limited. All rights reserved.

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SIDC launches new certification programme in sustainable and responsible investment for the capital market

  • aims to improve SRI’s skills and combat ability shortages.
  • SRI money hold RM7.7 billion in net asset value at close 2023&nbsp, &nbsp, &nbsp, &nbsp, &nbsp,

L-R, Tunku Alizakri Alia, chairman, MAVCAP; Mohammad Faiz Azmi, chairman, Securities Commission Malaysia; Lim Hui Ying, deputy minister of Finance; Abdul Wahid Omar, chairman, Bursa Malaysia; Tengku Zarina Tengku Chik, CEO, SIDC. 

A new certification program is being developed by the Securities Industry Development Corporation ( SIDC ) and is intended for professionals in the financial and capital markets. The goal of the Licensed Capital Market Professional in Sustainable and Responsible Investment (CCMP- South ) qualification is to raise the bar for competence of professionals in the investment market in response to the growing demand for responsible and accountable investment.

According to SIDC, there were 68 sustainable and responsible investment ( SRI ) funds in Malaysia with net asset value of US$ 1.63 billion ( RM7.7 billion ) as of December 2023, a significant increase from just seven SRI funds in 2020 with net asset value of US$ 309 million ( RM1.46 billion ), citing the Securities Commission Malaysia’s annual reports.

” Over the past few years, there have been more responsible and accountable investments in Malaysia, and a number of green jobs have been put in place. According to Tengku Zarina Tengku Chik, CEO of SIDC, there is a growing need for experts who can effectively help and guide in responsible and accountable purchase goods.

In addition to completing a range of e-learning, webinars, workshops, and collaborative learning sessions, the CCMP-SRI certification program does combine education, webinars, workshops, and collaborative learning sessions to prepare graduates for positions that demand an understanding of both the overall effect of expense on society and the environment as well as the broader impact of investment.

” Ability shortages current major challenges across several aspects of nation- building, particularly in our goals towards sustainability. Malaysia has continue to expand access to capacity-building initiatives that are related to conservation. At the launch of the new certification program, Lim Hui Ying, deputy minister of finance, said,” We need all participants in our ecology to work together to make our labor ‘vibe-ready’ in sustainable funding features.

The development of the new certification program was aided by 74 industry experts, including members of the Curriculum Review Committee and the Assessment Review Committee. They are mapped to SIDC’s Industry Competency Framework ( ICF).

There are two constructed levels for the CCMP-SRI. The CCMP- SRI1 level is intended for professionals who want to advance their knowledge of SRI and lasting development in Malaysia’s capital market. The next stage, CCMP- SRI2, is for professionals with basic sustainability and SRI skills, aiming to enhance their knowledge in revolutionary sustainability development, ESG structuring, ESG and SRI structuring.

More details can be found at website. sidc.com. my/attend/ccmp- sri1/&nbsp, &nbsp, &nbsp, &nbsp, &nbsp, &nbsp, &nbsp,

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