Association of Southeast Asian Nations

Research & Reports

2019
SUSTAINABLE FINANCE REPORT

Sustainable Banking Regulations

This report takes stock of the recent progress made by financial regulators and banking associations across ASEAN. It provides a comparative assessment of sustainable banking regulations and guidelines in five ASEAN countries (namely Indonesia, Malaysia, Singapore, Thailand and Vietnam) as well as in China, based on a newly developed framework. The report also assesses the banks’ level of alignment with the expectations set by the financial regulator or banking association in each of the five ASEAN countries, based on WWF’s assessment of banks’ E&S integration practices using the Sustainable Banking Assessment (SUSBA) tool.

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2019 UPDATE
SUSTAINABLE FINANCE REPORT

Sustainable Banking Report

This report summarizes the 2019 updates of the third SUSBA assessment, covering the ESG integration performance across 35 ASEAN banks. WWF reviewed only publicly available, English language disclosures in the form of 2018 annual reports, 2018 sustainability or CSR reports as well as information posted on corporate websites such as company policies, statements, investor presentations and press releases.

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2018 UPDATE
SUSTAINABLE FINANCE REPORT

Sustainable Banking Report

This report is an update of the Sustainable Banking in ASEAN report issued by WWF in partnership with the National University of Singapore (NUS) Centre for Governance, Institutions and Organisations (CGIO) in October 2017. This report benchmarks 34 banks in six ASEAN countries – namely Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam –
on their corporate governance practices and their integration of environmental, social and governance (ESG) factors into their business.

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2018
CLSA U

Keep palm and carry on

As the palm oil industry strives for more viable growth, CLSA with insights from WWF present their take on the current situation. Despite still accounting for only 23m hectares of land globally, the perennial crop produces the world’s most consumed vegetable oil. Comparing the different
certification standards, the report suggest areas where further change could be implemented to boost palm-oil producers’ sustainability goals. However, supply is just one part of the picture. It is also important to understand the roles of the other key stakeholders – end-buyers and financiers – and the progress that is being made in encouraging and facilitating the sector’s movement towards greater accountability and transparency.

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2017
SUSTAINABLE FINANCE REPORT

Sustainable Banking Report

The report considers the banking sectors of six ASEAN countries, namely Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. It explores the sustainable finance regulatory landscape as well as the supporting corporate governance codes and sustainability reporting guidelines that pertain to the banking sector in these countries. It assesses disclosure by 34 listed banks against a set of indicators that represent the fundamental pillars of (i) sound corporate governance practices (board, shareholders and stakeholders, disclosure and transparency, audit and risk) and (ii) robust ESG integration practice (purpose, policies, processes, people, products, portfolio).

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2016
INTERNATIONAL REPORT

Fast moving consumer goods

Asian fast moving consumer goods (FMCG) are an important growth sector for the Asian economies and hence an important component of financiers’ portfolios. Extreme weather events, water and food crises, and climate change all feature in the World Economic Forum’s top 10 global risks survey. The FMCG sector (defined as food and beverage, household and personal care) is particularly vulnerable to these risks through its long and diverse raw material supply chains. Financiers are increasingly looking into the value chains of FMCG companies to better understand risks and opportunities that impact growth and valuations. They can use this guide when building an investment case, for conducting due diligence on FMCG portfolio companies, or as part of any ongoing dialogue or engagement.

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2019
FRANCE REPORT

Green bonds must keep the green promise!

This report, which is based on research conducted for us by a big four professional services firm, focusses on the booming green bond market and explores the diverse landscape of green definitions, standards, frameworks, and guidelines that are currently used in the market. It seeks to assess how the green bond market can help finance the transition towards a sustainable economy and make significant contributions to addressing the environmental challenges of our time, in particular limiting dangerous climate change and global warming to below 1.5°C, conserving biological diversity, ensuring the sustainable use of renewable natural resources, and reducing pollution and wasteful consumption.

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2014
INTERNATIONAL REPORT

ESG Integration for Banks

This Guide aims to give you practical guidance to help you integrate Environmental, Social and Governance (ESG) into your banking practices. It focuses mainly on the environmental and social aspects of ESG. Well managed banks should focus on both the risks and opportunities, and in so doing they can become key leverage points to move from business-as-usual to a sustainable future.

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Explaining Sustainable Finance

TCFD

The Task Force on Climate-Related Financial Disclosures seeks to develop recommendations for voluntary climate-related financial disclosures that are consistent, comparable, reliable, clear, and efficient, and provide decision-useful information to lenders, insurers, and investors.

TCFD

Sustainable Finance

Sustainable finance is the link between financial systems and ecosystems. Natural capital generates sustainable economic and environmental benefits that support healthy and resilient economies.

Green financial solutions

Green Financial Solutions are important levers to impact and influence the redirection of financial flows and to be adopted by mainstream asset owners. Responsible investing, which includes impact and conservation investing, has entered a dynamic momentum globally and is moving mainstream and set to grow more quickly as an increasing number of companies have committed to support the UN SDGs and investors are starting to implement this into strategies.

EU Technical expert group on sustainable finance

The European Commission set up a Technical expert group on sustainable finance (TEG) to assist it in developing, in line with the Commission's legislative proposals of May 2018 an EU classification system – the so-called EU taxonomy – to determine whether an economic activity is environmentally sustainable; an EU Green Bond Standard; methodologies for EU climate benchmarks and disclosures for benchmarks; and guidance to improve corporate disclosure of climate-related information.

EU Technical expert group on sustainable finance

Natural capital

The Capital has often been thought of narrowly as physical capital – the machines, tools, and equipment used in the production of other goods, but our wealth and wellbeing also relies on natural capital, which support our economies and sustain our lives. These services include purifying our water, regulating our climate, reducing flood risk, and pollinating our crops.

Natural Capital

NGFS

The Network of Central Banks and Supervisors for Greening the Financial System (NGFS), is a group of central banks and supervisors willing, on a voluntary basis, to share best practice and contribute to the development of environment and climate risk management in the financial sector and mobilize mainstream finance to support the transition towards a sustainable economy.

NGFS

Bankable projects

Put simply, a project is considered bankable if lenders are willing to finance it. The UN estimates an annual financing gap of $2.5 Trillion to achieve the SDGs. A significant proportion of the investment need is made up of projects with the potential for strong business models and revenue profiles that are attractive to the private sector. WWF is working to fill this investment gap by looking at Bankable Solutions to identify and vet a pipeline of bankable projects to protect and sustain ecosystems.

WEF global risk report

The Global Risks Report is an annual study published by the World Economic Forum and describes changes occurring in the global risks landscape from year to year. Sources for the report include an assessment by several major insurance and reinsurance companies and focus workshops, interviews and a survey of internationally recognised experts.

WEF global risk report

EU taxonomy

The TEG has been working on developing the EU taxonomy for climate change mitigation and climate change adaptation, which aims to define economic activities that are environmentally sustainable. It intends to be as comprehensive as possible and cover all relevant parts of the economy.

Environmental bonds

Environmental bonds – generally called “green bonds” – are financial instruments classified under the fixed income security asset class that raise debt for investment in companies or projects with specific environmental benefits/outcomes in mind.