Sustainable finance and green recovery
Southeast Asia is highly vulnerable to the effects of climate change and yet the region has witnessed one of the highest increases in carbon dioxide (CO2) emissions. In the post-COVID-19 economic recovery, it is critical for countries to meet their Nationally Determined Contributions (NDCs) under the Paris Agreement, and continue an economic shift to a low-carbon model.
The financial and other sectors of the economy must be engaged to match policy intervention and address current gaps in meeting NDC commitments as well as embedding long-term sustainability trajectory in country-specific strategies. A resilient and low-carbon economic growth will require increased transparency and high-quality sustainability disclosure from companies under globally recognized sustainability reporting frameworks. Transparency is a tool that corporations and financial institutions can use to identify risks and opportunities, shifting investment practices to green and sustainable initiatives.
With funding from the UK PACT Green Recovery Challenge Fund, we are partnering with CDP to deliver a capacity building program for corporates and financial institutions in Indonesia and Thailand to:
- Address knowledge gaps in climate-related sustainability disclosure and its financial implications;
- Establish environmental, social and governance (ESG) best practice for social inclusion and human rights; and
- Encourage the adoption of green and sustainable finance.
The program will equip beneficiaries with knowledge on disclosures that recognize financial risks and opportunities associated with climate change and ESG practices and facilitate the use of disclosed data to identify green and sustainable finance opportunities.
Its overall goal is to contribute to emissions reduction and green and inclusive economic recovery through a shift in capital flows towards low-carbon activities and enhanced disclosure capacity and transparency.
The Sustainable Finance & Green Recovery program runs from February 2021 to January 2022 and results and resources will be published on this page when they become available.