Singapore Green Finance Centre

At the “Towards Net Zero Conference: Legal Aspects of Corporate Climate Action in Asia,” Dr Rajiv Lall (SGFC Management Committee Member) shared valuable insights during his panel on climate litigation. Drawing on his extensive experience advising corporate boards, particularly in India, Rajiv observed that many directors remain resistant to change, often believing they are already doing enough to address climate issues. Litigation and regulatory pressures may seem like the only ways to encourage progress, but these forces often result in a compliance-driven approach, rather than fostering genuine transformation in business strategies. He also emphasised the crucial role of trust in how businesses respond to regulations. In regions like Singapore, where public trust in government is high, companies are generally more proactive in responding to regulatory signals. This responsiveness could offer valuable lessons for regions where such trust is lacking. Rajiv noted that legal action and regulations can enforce compliance, but true change will occur when businesses integrate climate risks into their boardroom strategies. He believes this shift is essential for driving long-term and meaningful climate action. Rajiv concluded by addressing the challenge of greenwashing, highlighting how misleading claims can undermine genuine climate efforts and erode trust among stakeholders. While sustainability labels can serve as important tools for accountability, they are often inconsistently applied, leaving room for ambiguity and misuse. The event was organised by the Asia-Pacific Centre for Environmental Law (APCEL) and the EW Barker Centre for Law & Business (EWBCLB) at NUS Faculty of Law, with support from the Commonwealth Climate and Law Initiative (CCLI). The panel also featured The Rt. Hon. Lord Robert Carnwath of Notting Hill (Former Justice of the UK Supreme Court), Peter Barnett (Programme Lead, Quadrature Climate Foundation), Joana Setzer (Associate Professorial Research Fellow, Grantham Research Institute, LSE), and Sean Tseng (Senior Legal Counsel, Sustainability, SHEIN), moderated by Jolene Lin (Director, APCEL and Associate Professor, Faculty of Law, NUS). You can watch the full recording of the panel discussion here: https://lnkd.in/gnHAvHd3

Read the Sustainable Investment Summit 2024 Impact Report for a detailed recap of the information sessions, panel discussions, and networking opportunities that brought together 148 students and 39 professionals, empowering the next generation of sustainable changemakers! SMU Sustainable Investment Han Wei Chen Andrew So Jia Xue Lee Natalie Tan Magnar Tan Rachael Chan Lee Ryan Timothy Tay Darren Marcus Loo Dorothy Lye Kai Ze Tam Nekeisha Ng Julio Tan Krystal Tan Yogert Lim Marcus Tan Asia Wong Julianna Gawson Devina Kwee Adele Lim

SGFC representatives, Professor Hao Liang (Singapore Management University) and Professor Enrico Biffis (Imperial College London), recently participated in the MIT Workshop on Biodiversity and Finance, a collaborative event organised by MIT Sloan School of Management. This workshop brought together leading ecology, sustainability, economics, and finance experts to explore critical questions, including: How do we measure biodiversity loss? How can we assess the impacts of corporate activities on ecosystems? How do we address nature-related financial risks? The agenda included thought-provoking sessions on biodiversity metrics, nature-related risks, viewing nature as an asset class, and exploring future scenarios for biodiversity. These discussions aimed to develop a theoretical framework that connects ecological theories with finance and policy goals. The framework seeks to include a practical measurement process to address impact, risk, and projections, ensuring it is both theoretically sound and grounded in real-world data. SGFC’s Imperial colleagues—Patrick Bolton, Ailsa Roell, and Will Pearse—also contributed to these discussions, alongside ecologists and economists from renowned academic and financial institutions. Both Hao and Enrico’s involvement in this workshop aligns perfectly with our ongoing SGFC Biodiversity Finance Research Project, a key initiative designed to provide actionable insights for policymakers and financial professionals in the region. 

Join SGFC Executive Director Nikki Kemp at The Orange Forum 2024, where she will speak on the third panel, "Unleashing the Power of 'Orange' Through Data," alongside Trisha Gray (Assistant Director, Gender Equality, Disability, and Social Inclusion, DFAT), Zia Zaman (General Manager, Microsoft), Candice Low (Associate Director, Sustainable Fitch), and Divya Patel (CEO, Ishk Tolaram). They will explore how digital tools and equitable data access empower women-led climate solutions and amplify the voices of last-mile communities. The Orange Forum 2024, held in Singapore, is a landmark event celebrating the transformative achievements of the Orange Movement™, a global initiative redefining finance to drive gender equality, climate action, and sustainability. While the event is sold out, you can still catch it live on LinkedIn: https://lnkd.in/gxdc4w62. Date: Tuesday, 10 December 2024 Time: 10:00 AM – 5:30 PM (SGT) Impact Investment Exchange (IIX)

Download our latest policy brief, "Enhancing Market Infrastructure and Integrity to Scale Up Carbon Markets in ASEAN," authored by Raúl C. Rosales, PhD, and based on insights from our recent carbon markets roundtable: https://lnkd.in/gqpDr5kM. Key Takeaways: 1️⃣ ASEAN needs standardised carbon markets and robust carbon pricing mechanisms, requiring strong government efforts and political will. 2️⃣ COP29 marks the full operationalisation of Article 6, enabling global carbon market expansion—the focus now shifts to implementation and mutual recognition of carbon credits. 3️⃣ Institutionalising carbon markets by establishing an "investment-grade" market infrastructure to support a Common Carbon Framework. 4️⃣ Stock exchanges and rating agencies play a vital role in building a regulated market infrastructure that fosters investors' confidence, transparency, and liquidity. 5️⃣ Banks are key to financing carbon projects and providing liquidity for carbon market trading, but they face challenges such as data gaps and regulatory constraints. We have a forward agenda to deepen collaboration among stock exchanges, banks, and key stakeholders, driving impactful research and practical case studies. Throughout 2025 and beyond, we will provide valuable insights through a series of workshops, roundtables, and research papers, to guide governments, policymakers, industries, and financial institutions in supporting the development of the ASEAN Common Carbon Framework. Boon Chye Loh Oi-Yee Choo UK in Singapore Australian High Commission, Singapore Centre for Climate Finance & Investment

Our recent Transition Finance Conference highlighted the critical role of transition finance in shaping future-ready enterprises and creating long-term socio-economic impact. Nikki Kemp, Executive Director of SGFC, shared: "Asia is at the epicentre of the climate crisis and the region’s continuing economic success is at risk. ‘Transition Finance – Raising the Ambition’ explored the essential elements of financing a credible transition in Asia. Examining data and case studies, we were shown that we can address the challenges of financing the transition and deploy actionable solutions if we seek progress rather than perfection. The academic research and finance industry insights together form a powerful exchange of thought leadership.” Read the full article at https://lnkd.in/gvVQxkhP

We released Part III, the final instalment of "Financing Adaptation and Resilience in London and the UK: Moving from Aspiration to Reality". This paper, led by Raffaele Della Croce and co-authors Stella Whittaker and Claudia Hlavackova, focuses on policy recommendations and explores pathways to mobilise finance for adaptation. In conjunction with the release, Imperial College Business School's Centre for Climate Finance & Investment, the Imperial Policy Forum, and the Grantham Research Institute on Climate Change & the Environment hosted a panel discussion in London to launch the final paper. Key takeaways: - Mobilise more private capital with innovative financial instruments, including nature-based solutions, carbon markets, cooperative finance, crowdfunding, government-backed green gilts, and green bonds. - Strengthen the public sector’s role in de-risking investments and fostering blended finance models to attract private capital. - Highlight the broader benefits of adaptation finance—such as improved biodiversity, enhanced public health, and increased community resilience—to appeal to investors beyond financial returns. - Engage academics, local actors, authorities, and citizens to collaborate on actionable insights and fund local adaptation projects. Download all three parts of the series: Part I: Case Studies Analysis, Part II: Urban Adaptation Financing, and Part III: Policy Recommendations at https://lnkd.in/g56ta_rt

Prof Hao Liang, Co-Director of SGFC, recently led a training session on sustainable finance, focusing on transition finance, for the Bank of China Limited Singapore Branch—one of SGFC's Founding Partners. This session highlights the bank’s dedication to building expertise and SGFC’s commitment to advancing professional development and driving impactful change.

Dr Victor Ong, Adjunct Lecturer at the SMU Lee Kong Chian School of Business, tackles the question in his latest SGFC research paper: "Global Infrastructure PE Fund Performance: Does ESG Matter?” Key takeaways: ▫ Infrastructure private equity funds with higher ESG scores outperform funds with lower ESG scores from net internal rate of return (IRR) and total value over paid-in (TVPI) perspectives. ▫ Industry diversification and fund size attenuate the relation between fund performance and ESG scores. ▫ His findings provide strong motivations for private equity fund managers to incorporate ESG considerations into the investment process The research leverages key data from Preqin and robust Ordinary Least Squares (OLS) regression models to deepen our understanding of the link between ESG and private equity success, providing strong evidence for those advocating for socially responsible investing. As ESG principles become increasingly important in shaping financial markets, this research informs academic debate and equips fund managers with evidence to drive more sustainable outcomes. Read more and download the full paper (forthcoming in the Journal of Impact and ESG Investing) at https://lnkd.in/gcFQpKUk.

Transition Finance Conference: Research Presentations on “Digital Transition: How AI and FinTech are Enabling the Transition.” Dr Dejing Dou’s (Distinguished Professor, School of Computer Science at Fudan University) presentation on “AI and Digital Transition” explored the evolving role of AI in various sectors, including entertainment, healthcare, environmental science, finance, compliance, and data privacy and security. He highlighted that the future of AI will focus on enhancing interpretability, security, and privacy by integrating semantic technologies, adversarial learning, and federated learning into generative AI models. These advancements aim to address issues like deepfakes, misinformation, data privacy, and bias, making AI systems more transparent, reliable, and secure across various applications. Relevant discussion points raised by observers included environmental concerns related to the high energy consumption of AI, the impact of AI capabilities on multilingual data, and challenges regarding data privacy limitations. Finally, Dr Hong Zhang’s (Professor of Finance and Director of the Sim Kee Boon Institute for Financial Economics at SMU (SKBI) at Singapore Management University) presentation, titled “Can AI Help Human Decisions: A Finance Perspective in Digital Transition,” focused on the rise of AI in financial markets, particularly in processing financial information and assisting in financial decision-making. He raised two key questions: the rationale behind AI’s success and how it exposes the limitations of human intelligence. Using neural network tools, his findings revealed that AI can assist trading by aligning with optimal human decisions and identifying key mistakes made by human traders. Relevant discussion points raised by observers included topics such as the characteristics of data used in neural networks, comparisons between AI performance and traditional investment methods, and the potential for AI to assist human decision-making. We extend our heartfelt appreciation to all distinguished speakers and attendees for joining us in raising the ambition for Transition Finance! Conference presentation slides can be downloaded at https://lnkd.in/d8YiquTd under the "Resources" tab. Video recordings of the presentations will be made available soon.