Focus on business sustainability does not hamper ESG ambitions
Sustainability means using a strategy that shifts CAPEX to OPEX with right partners
For a long time, the immediate picture that came to mind when one thought of Pos Malaysia Bhd was that of our regular postman and his trusty kapchai. But of late, there…Continue Reading
The University of Toronto is at the top of the list of universities in the world that address economic, cultural, and management issues.
Published on December 7, 2023, at 16 :44.
According to the QS World University Rankings: Sustainability 2024, Chulalongkorn University is ranked second in Thailand for social and environmental sustainability.
The QS Sustainability Rankings 2024 feature 1, 397 universities and are based on metrics intended to gauge an institution’s capacity to address the biggest environmental, social, and governance ( ESG) challenges in the world.
The University of Toronto in Canada came in second overall, followed by the Universities of Manchester in England and California Berkeley in the US.
For the study, thirteen Thai colleges were evaluated. Their positions in the nation ( placed globally in parentheses ) are as follows:
Srinakharinwirot, Suranaree University of Technology, and Walailak were the other three Thai institutions, ranking combined first and 201st globally.
As 70,000 political and business leaders, diplomats, financiers and activists have flown to Dubai to talk about ways to avoid environmental disaster due to climate change at COP28, the annual international climate summit convened by the UN, China has emerged as a global leader in renewable energy.
With an impressive surge in clean energy infrastructure, China now boasts more significant solar generating capacity than the rest of the world combined.
This remarkable feat not only positions the country of 1.4 billion people as a pioneer in sustainable energy, but also signals a promising future that is likely to attract investors from around the globe.
However, China remains by far the world’s biggest carbon-dioxide polluter, pumping out nearly a third of annual emissions, or more than the US, the European Union, and Africa combined.
But despite this, the People’s Republic’s commitment to renewable energy is evident in the rapid expansion of its solar and wind power capacities.
The country has strategically invested in the development of large-scale solar farms, harnessing the abundant sunlight across its vast landscapes.
The result is a substantial increase in solar energy production, outpacing any other nation on Earth. Wind power has also seen significant growth, with the construction of expansive wind farms contributing to the diversification of China’s clean energy portfolio.
The country’s success in renewable energy is not solely attributed to its scale of production but also to its relentless pursuit of technological advancements and innovation.
It has invested heavily in research and development, generating breakthroughs in solar-panel efficiency, energy storage solutions, and smart grid technologies.
These innovations have not only improved the overall effectiveness of renewable energy systems but have also made them more economically viable, further enticing investors from around the world seeking sustainable and profitable opportunities.
The government has also set aggressive goals to increase the share of renewable energy in its overall energy mix, aiming to peak carbon emissions by 2030 and achieve carbon neutrality by 2060.
Such long-term objectives provide a stable and predictable regulatory environment, reducing uncertainties for investors.
Additionally, Beijing’s willingness to offer financial incentives and subsidies for renewable projects enhances the attractiveness of the sector for both domestic and international investors seeking to boost the ESG-oriented (environmental, social and governance) investments in their portfolios.
People are increasingly drawn to ESG investments for a multitude of reasons, spanning ethical considerations to financial prudence.
Investors are increasingly aware that their capital can be a force for positive change. ESG investments allow them to channel funds toward companies that actively contribute to a sustainable and socially responsible future.
Far from being a sacrifice for the moral high ground, ESG investments are proving to be financially astute.
Numerous studies suggest that companies with high ESG scores tend to outperform the market; and Reuters has reported that ESG-positive funds outperformed globally over five years.
Not only are companies with high ESG ratings often better positioned to weather market volatility and capitalize on emerging opportunities, ESG factors are increasingly recognized as critical elements in risk assessment.
Companies with robust environmental, social, and governance practices are better equipped to navigate regulatory changes, reputational risks, and operational challenges. Investors are, therefore, drawn to ESG investments as a way of fortifying their portfolios against unforeseen risks.
As such, China’s advances in the area of green energy position it to be extremely attractive for investors moving forward – something that delegates at COP28 will inevitably discuss.
Nigel Green is founder and CEO of deVere Group. Follow him on Twitter @nigeljgreen.
44% of them are driven by an increase in business opportunities
Poor incentives/ low return on investment is key barrier to implementing sustainability
Although 95% of companies in Malaysia have established sustainability goals or targets, only half (49%) have implemented or are currently practising a comprehensive sustainability strategy. This is according to the…Continue Reading
24% currently use AI models to replace routine or administrative tasks.
79% of employees seek new roles for career progression in the next 12 months
While the demand for top talent will remain strong across all industries in 2024, the increased use of digital and generative AI in companies, along with a growing…Continue Reading
Emphasises the necessity of a holistic, balanced development plan for Cyberjaya
Address emission, and resource concerns as data centers integrate AI into working cultures
During Cyberview’s InnoEx, an inaugural innovation expo event held in Cyberjaya last September, Prime Minister Anwar Ibrahim’s speech highlighted the city’s potential to become the preferred investment location for…Continue Reading
Aims to reduce GHG intensity by 11.4% by 2024
Rebates on interest rates linked to its Sustainability targets
U Mobile has converted its existing banking facility of up to US$299.7 million (RM1.4 billion) into a sustainability-linked financing (SLF). The deal is aligned with U Mobile’s overall sustainability strategy, and it is entitled to…Continue Reading
Hopes Malaysia can lead in ESG investments in the region
Malaysia targets increasing renewable energy capacity from 25% to 40% by 2035
The Malaysian Research Accelerator for Technology and Innovation (Mranti) announced its commitment to being the country’s first carbon-neutral innovation park by 2035. At the organisation’s flagship I-Nation conference, Chang Lih Kang, minister…Continue Reading
Impact investing is gaining in popularity across the globe, but a lack of harmonised environmental, social and governance (ESG) data, regulations and standards pose barriers to its development in Asia, a BNP Paribas survey suggested.
“Asia Pacific (Apac) is behind Europe, which has already integrated broader ESG topics such as inequalities and biodiversity. But it is ahead of North America which is highly fragmented over this topic,” Jules Bottlaender, Apac head of sustainable finance at BNP Paribas (securities services), told FinanceAsia.
So far 41% of global investors recognise a net zero commitment as their priority, while in Apac, 43% have set a due date to achieve net zero targets, according to the survey.
The global survey, titled Institutional investors’ progress on the path to sustainability, looked into how institutional investors across the globe are integrating their ESG commitments into implementation.
It gathered data from 420 global hedge funds, private capital firms, asset owners and asset managers between April and July 2023. Among them, 120 (28.6%) are from Asia Pacific (Apac) markets including China, Hong Kong, Singapore and Australia.
Impact investing
Impact investing, a strategy investing in companies, organisations and funds generating social and environmental benefits, in addition to financial returns, is a global trend that in the next few years, is set to overtake ESG integration as the most popular ESG strategy, the report revealed.
Globally, ESG integration dominates 70% of investors’ ESG investment strategies, but the proportion is expected to drop by 18% to 52% over the next two years. In contrast, 54% of respondents reported a plan to incorporate impact investing as their primary strategy by that time.
European investors have the greatest momentum in adopting impact investing at present, with 52% employing impact investing. While in the four markets in Apac, the proportion stood at 38%.
Negative screening took a lead as a major strategy of 62% investors surveyed in Apac. In the next two years, the figure is set to shrink to 47%, overtaken by 58% estimating to commit to impact investing.
“Impact investing is a rather new concept for most people [in Asia]. It is driven by the need to have a clear and tangible positive impact,” Bottlaender said.
An analysis from Invesco in March 2023 pointed out that while impact assessment is key to a measurable outcome of such investments, clear and consistent frameworks are required to avoid greenwashing acts.
“There is no singular standard for impact assessment,” the article noted. On the regulatory side, specific labelling or disclosure requirements dedicated to impact investing have yet to come in Asia.
Private markets, including private debt, private equity and real assets, will take up a more sizeable share of impact investing assets under management (AUM), it added.
Bottlaender echoed this view, saying that current regulatory pressure in Asia “is almost all about climate”. As a result, Asian investors’ ESG commitments are mostly around climate issues such as including net zero pledges and coal divestment. These are coming before stronger taxonomies and broader ESG regulations which are set to be finalised over the next few years.
Data shortage
A lack of ESG data is one of the greatest barriers to investors’ commitments, as respondents to the survey reported challenges from inconsistent and incomplete data. The concern is shared by 73% of respondents across Apac, slightly higher than a global average of 71%.
Bottlaender explained that although mandatory reporting of climate data is adopted in certain regulations, a majority of ESG data is submitted voluntarily.
This leads to a fragmentation and inconsistency of sources based on the various reporting standards they adhere to. Moreover, the absence of third-party verification results weighs on the accuracy and reliability of the data provided, he continued.
He shared that investors are either engaging directly with companies to encourage standardised reporting practices, or relying on data providers, or leveraging technology to carry out quality control to address the lack of ESG data.
But “significant gaps persist, especially concerning private companies and aspects like scope 3 emissions.”
“As a result, investors must be extremely cautious when advancing any ESG claim or commitment,” he warned.
¬ Haymarket Media Limited. All rights reserved.
Impact investing is gaining in popularity across the globe, but a lack of harmonised environmental, social and governance (ESG) data, regulations and standards pose barriers to its development in Asia, a BNP Paribas survey suggested.
“Asia Pacific (Apac) is behind Europe, which has already integrated broader ESG topics such as inequalities and biodiversity. But it is ahead of North America which is highly fragmented over this topic,” Jules Bottlaender, Apac head of sustainable finance at BNP Paribas, told FinanceAsia.
So far 41% of global investors recognise a net zero commitment as their priority, while in Apac, 43% have set a due date to achieve net zero targets, according to the survey.
The global survey, titled Institutional investors’ progress on the path to sustainability, looked into how institutional investors across the globe are integrating their ESG commitments into implementation.
It gathered data from 420 global hedge funds, private capital firms, asset owners and asset managers between April and July 2023. Among them, 120 (28.6%) are from Asia Pacific (Apac) markets including China, Hong Kong, Singapore and Australia.
Impact investing
Impact investing, a strategy investing in companies, organisations and funds generating social and environmental benefits, in addition to financial returns, is a global trend that in the next few years, is set to overtake ESG integration as the most popular ESG strategy, the report revealed.
Globally, ESG integration dominates 70% of investors’ ESG investment strategies, but the proportion is expected to drop by 18% to 52% over the next two years. In contrast, 54% of respondents reported a plan to incorporate impact investing as their primary strategy by that time.
European investors have the greatest momentum in adopting impact investing at present, with 52% employing impact investing. While in the four markets in Apac, the proportion stood at 38%.
Negative screening took a lead as a major strategy of 62% investors surveyed in Apac. In the next two years, the figure is set to shrink to 47%, overtaken by 58% estimating to commit to impact investing.
“Impact investing is a rather new concept for most people [in Asia]. It is driven by the need to have a clear and tangible positive impact,” Bottlaender said.
An analysis from Invesco in March 2023 pointed out that while impact assessment is key to a measurable outcome of such investments, clear and consistent frameworks are required to avoid greenwashing acts.
“There is no singular standard for impact assessment,” the article noted. On the regulatory side, specific labelling or disclosure requirements dedicated to impact investing have yet to come in Asia.
Private markets, including private debt, private equity and real assets, will take up more sizeable share of impact investing asset under management (AUM), it added.
Bottlaender echoed this view, saying that current regulatory pressure in Asia “is almost all about climate”. As a result, Asian investors’ ESG commitments are mostly around climate issues such as including net zero pledges and coal divestment, before stronger taxonomies and broader ESG regulations which are set to be finalised over the next few years.
Data shortage
A lack of ESG data is one of the greatest barriers to investors’ commitments, as respondents to the survey reported challenges from inconsistent and incomplete data. The concern is shared by 73% of respondents across Apac, slightly higher than a global average of 71%.
Bottlaender explained that although mandatory reporting of climate data is adopted in certain regulations, a majority of ESG data is submitted voluntarily.
This leads to a fragmentation and inconsistency of sources based on the various reporting standards they adhere to. Moreover, the absence of third-party verification results weighs on the accuracy and reliability of the data provided, he continued.
He shared that investors are either engaging directly with companies to encourage standardised reporting practices, or relying on data providers, or leveraging technology to carry out quality control to address the lack of ESG data.
But “significant gaps persist, especially concerning private companies and aspects like scope 3 emissions.”
“As a result, investors must be extremely cautious when advancing any ESG claim or commitment,” he warned.
¬ Haymarket Media Limited. All rights reserved.