With ESG and sustainable finance and investment becoming ever more mainstream, what steps should governments, policy and standard-setters and regulators take to solidify the sector’s position? With the burgeoning sector facing ever-increasing scrutiny, how can risk management, disclosure and accountability be enhanced to help ensure ESG finance and investment is fit for purpose in today’s dynamic financial landscape? How can rapidly evolving taxonomies, reporting and disclosure requirements be effectively implemented without sacrificing industry growth? How can policymakers and regulators align the objectives and profitability of the sustainable finance industry with the collective problems the sector is trying to address, such as climate change? Locally, how can successful initiatives such as Values-Based Intermediation (VBI) be harmonised with climate finance to counter the effects of climate change in Malaysia and beyond? Where and how do ESG standards and ratings, and Shariah governance converge to help forge a new generation of fruitful investment and financing products? We ask an expert panel.
Faroze Nadar, Executive Director, UN Global Compact Network Malaysia & Brunei
Hussam Sultan, Regional Head, Commercial and Transaction Banking (Islamic), CIMB
Sunita Rajakumar, Founder, Climate Governance Malaysia
Having witnessed unprecedented recent growth, what, on macro and micro levels, is the sustainable and ESG investment industry today, and what is it not? How do we ensure ESG investors ultimately receive superior returns, while also investing for good? Correspondingly, how do we effectively reward sustainable borrowers and issuers through a lower cost of capital? Through robust standards, consistency of reporting, enhanced accountability and integrity, how can these important objectives be met, while maintaining the sector’s growth? What investment products and styles do different ESG investors now demand, how can their requirements be satisfied and is there an increasing divergence between institutional versus retail, and active versus passive? With significant existing convergence between Shariah compliant assets and sustainable investing, what opportunities are there for financing and investment products that satisfy both? Finally, with the unprecedented growth of green bonds and Sukuk, how do we calculate whether these instruments offer positive environmental impact, and if so, how much?
Margie Ong, CEO, Thoughts in Gear
With preferential financing rates and a wider investor base on offer, how do existing and potential issuers of green bonds and Sukuk successfully highlight, maintain and reinforce green credentials? How can green initiatives and decarbonization be prioritized within the core operations and financing strategy of an issuer, and how can this translate to overall lower costs of capital? How are disclosure requirements and regulatory obligations evolving for green issuers, and what needs to be done to ensure compliance? What structures and assets are ESG and Shariah compliant investors currently demanding, and is this changing? What do structures such as sustainability-linked and transition bonds and Sukuk offer issuers, particularly in asset-heavy sectors such as transport, mining and hydrocarbons? Finally, is the definition of ‘greenwashing’ changing and what does this mean for potential issuers? We seek the views of an expert panel.
Cedric Rimaud, Climate Finance Specialist
Cheryl Tay, Senior Associate, Sustainable Finance Solutions, Sustainalytics
Zalina Shamsudin, General Manager, Capital Markets Malaysia
