Unlocking capital for sustainability 2021: Scaling sustainable finance for a green recovery

The Covid-19 pandemic has underscored the urgency of the climate crisis and exposed deep-rooted vulnerabilities in public health systems, social safety nets and supply chains — exacerbating inequality, particularly in poorer nations. As with climate change, governments have led the charge on pandemic responses and stimulus measures.  

However, rebuilding the economy will also require private sector capital. Sustainable finance has emerged as a key instrument through which investors can support a recovery that will address the effects of the pandemic while transitioning to a low carbon economy that is aligned with the growing number of net zero pledges by countries under the Paris Agreement. What is needed to ensure that capital is adequately allocated to a sustainable recovery? What are the most effective mechanisms, and where are the green finance opportunities in Asia?

The role of digital transformation and fintech in driving Asia’s recovery

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In partnership with AWS

(Bento boxes for in-person guests)

ESG-related issues are being increasingly recognised by regulators, business leaders and investors as being material to a company’s operations and bottom line. Amid rising stakeholder pressure for sustainability performance, business leaders are grappling with how to integrate ESG principles into business strategy to mitigate risks as well as uncover new opportunities.  

But what are the key ingredients in developing and implementing a strategic ESG roadmap and framework? In this session, we discuss how companies are integrating ESG metrics into their core business by examining the cornerstones to a solid strategy: corporate governance, risk management, target-setting, effective disclosure and assurance standards. How can companies align their objectives with ESG values to tap opportunities in sustainability-linked indices and capital? Our expert panel will unpack the challenges around devising an ESG strategy for improved business performance.

Global ESG assets are on track to exceed US$53 trillion by 2025 according to Bloomberg Intelligence, representing more than a third of the US$140 trillion in projected total assets under management. As major economies such as the US, EU and China deploy their green recovery plans post Covid-19, ESG investments have emerged as a powerful vehicle that can support a sustainable economy, particularly with a new wave of younger investors inheriting a massive amount of wealth and who are more attuned to impact investing.

In the aftermath of the global pandemic, there is greater urgency to identify and finance solutions, from access to healthcare, education and affordable housing to sustainable food supply chains. From institutional investors to individuals, the opportunity to make a positive impact with capital has never been more attractive, but how will returns be balanced with impact? As awareness among investors on ESG products grow, how are finance institutions responding to market changes?

Limited fiscal flexibility and high sovereign debt burdens can pose obstacles for governments pursuing green recoveries in the aftermath of Covid-19. With pressure increasing on governments and companies to ‘build back better’, there is an urgent need to deploy sustainable finance as a key driver of stimulus measures and future investments.

How are ESG principles being integrated into public-private partnerships (PPPs), and what are some mechanisms for safeguarding against greenwashing? In this closing discussion, speakers will focus on how governments can influence the private sector to multiply any commitment it makes on sustainable finance, and to finance sustainable projects with outcomes aligned to the SDGs.