Issue #258 - 28 June 2021 Dear Subscriber, |
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ESG and the Southeast Asian Islamic Capital Markets: Evolving Development to Ensure Effective Balance of Environmental, Social and Governance Priorities
A recent study by Refinitiv reported that Sustainable finance issuance is at new highs with around USD360 billion of Sustainable bonds being issued in the first nine months of 2020, up 96% on the same period in 2019, as well as a record USD155 billion of Sustainable finance raised in Q3 2020. With the volume of conventional Sustainability issuance reaching unprecedented levels and momentum continuing to increase, the Islamic Capital Markets (ICMs) would be wise to heed this as a call to action to increase their own activity in this space. Whilst the past 10 years have seen increased focus on Green and Social Impact Sukuk, ICMs should begin to focus on Sustainability issuances.
In this article on ESG and the Southeast Asian ICMs, DDCAP Group™ (DDCAP) discusses the evolution of ICMs towards supporting responsible and sustainable projects which reduce negative environmental impact whilst also promoting social and governance considerations. |
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Carbon Dated: Malaysia-Based Suppliers are Risking More Than USD65bn in Exports A new study by Standard Chartered reveals that multinational companies (MNCs) will cut suppliers for failing to curb carbon emissions, with 78 per cent MNCs planning to remove suppliers that endanger their carbon transition plan by 2025. For Malaysian suppliers who fail to transition alongside their MNC partners, this could mean a loss in export revenue of USD65.3 billion. However, the study also reveals a USD1.6 trillion market opportunity for suppliers who decarbonise in line with MNC partners’ net zero plans. Abrar A. Anwar, Managing Director and Chief Executive Officer of Standard Chartered Malaysia says: “To meet the goals of the Paris Agreement and reduce carbon emissions to net zero by 2050, collaboration is crucial. We can only combat the worst effects of climate change when all of us, be it financial institutions, policymakers, regulators and corporates; all work together. ” Carbon Dated surveyed 400 sustainability and supply chain experts at MNCs across the globe. |
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BritCham Singapore Webinar | Green Bonds, Carbon Offsetting & the Challenges with Data & Transparency
BritCham Singapore's Financial & Fintech and Sustainability Committees welcome you to a discussion on sustainable finance, green bonds, ESG Data, carbon offsetting and more as we lead up to COP26.
Date: Tuesday, 13 July 2021 Time: 4.00pm - 5.30pm (SGT/MYT) / 9.00am - 10.30am (UKT)
Check out Britcham Singapore's Sustainability Report here. |
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UK Business Climate Leaders' Summit
Ahead of COP26, President Alok Sharma has called on all businesses to sign up to the Race to Zero. The UK Business Group Alliance for Net Zero (BGA), led by the Corporate Leaders Group UK (CLG UK), is seeking to support this by accelerating sign up and climate action by UK businesses to Race to Zero. This webinar will provide a point on the road to COP26 that showcases UK businesses already taking ambitious climate action through committing to Race to Zero and explores the actions UK businesses can take to contribute to the UK meeting its ambitious net zero targets.
Date: Thursday, 1 July 2021 Time: 1.00pm - 3.00pm (UKT) / 8.00pm - 10.00pm (MYT)
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Take 5 | Q&A with Stella Cox CBE, Managing Director, DDCAP Group™ (DDCAP)
Established in 1998 and headquartered in London, DDCAP Group™ (DDCAP) is a market intermediary and financial technology solutions provider connecting the global Islamic financial market responsibly. DDCAP provides award-winning asset facilitation services to over 300 financial sector clients worldwide across a diverse range of Shariah-compliant products, asset classes and instruments in both the primary and secondary markets.
Stella Cox CBE, Managing Director of DDCAP shares how the group, through their Sustainable and Responsible Actions (SRA) Programme, business strategies that go beyond delivering financial results and constant engagement with their global stakeholders, is committed to developing a more sustainable, equitable and prosperous world. |
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HSBC | HSBC Amanah Publishes First TCFD Report for Malaysia’s Financial Industry
HSBC Amanah Malaysia Berhad (HSBC Amanah) recently announced the publishing of its Task Force on Climate-related Financial Disclosures (TCFD) report – the first of its kind amongst banks in Malaysia.
The report is key to HSBC Amanah’s ambition to become HSBC Group’s first sustainable banking entity by end-2022. It also supports Bank Negara Malaysia’s (BNM) efforts to strengthen the financial industry’s capacity in managing climate-related risks.
Developed by the Financial Stability Board (FSB) in response to the Paris Agreement, TCFD is an internationally recognised disclosure framework established to enhance climate-related financial reporting by encouraging consistent, reliable and transparent measurement and reporting of climate-related financial risks.
TCFDs are important for a company’s sustainability strategy and resiliency and will further build trust between investors and customers. In addition, implementing TCFDs could provide companies with better access to capital by increasing investors’ and lenders’ confidence that the company’s climate-related risks are appropriately assessed and managed.
Read our TCFD report here. |
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Jersey Finance | Jersey for Good: A Sustainable Future – Our Sustainable Finance Strategy
As a forward-thinking jurisdiction, we believe Jersey has a responsibility to leverage its expertise and capital to support the transition to an environmentally and socially sustainable global economy. Earlier this year, Jersey Finance launched its sustainable finance strategy, "Jersey for Good: A Sustainable Future" , which has been articulated around a 2030 Vision, as well as an initial two-year plan to accelerate our journey towards a sustainable future. |
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Fintech, ESG and IFCs: Embedding Sustainable Business Models
A new report has been published by Finextra, in collaboration with Jersey Finance, which explores how the financial services landscape is being re-shaped by the twin trends of digital technology and the rapid rise of sustainable finance. Analysing the symbiotic impact of these trends, the report highlights how fintech is playing a part in the scaling up of sustainable finance, while the latter in turn accelerates innovation in fintech. Read the report here. |
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PwC | How Business Can Bridge the Gap and Achieve Net Zero
Recent PwC analysis reveals that only about 8% of the world’s largest companies represented by the Global Fortune 500 have pledged to become net zero, as of February 2021.
Part of PwC’s Take on Tomorrow series, this article delves into the need for stronger business commitment to net zero, as the clock continues to tick on climate change. It highlights the gaps between aspiration and on-the-ground realities, calling for business leaders to take urgent action to meet the demands of science, government, investors and the wider society. Businesses are urged to take the lead in making sustainability commitments, instead of merely relying on government interventions to effect change.
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Ricardo | Ricardo Hydrogen Fuel Cell Expertise to Deliver World's First Truly Green Passenger Carrying Airline Services
As the aviation sector looks to build back better after the global pandemic, sustainability will be at its heart. Find out how Ricardo’s industry-leading experience in systems engineering and expertise in fuel cell and thermodynamic or thermal systems development contributed to Cranfield Aerospace Solutions’ ambitious plan to deliver the world’s first truly green passenger-carrying airline service powered by hydrogen technology in the article “HY in the Sky”**. For more information on Ricardo’s strategic engineering and environmental consultancy work, email Dr Leon Rosario, Ricardo ASEAN Region Technical & Marketing Director based in Kuala Lumpur, at Leon.Rosario@ricardo.com. |
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ZICO Law | Infographic Series 1 (Part 1) – Malaysia's Commitment to Sustainability
Malaysia has made a pledge alongside world leaders in the 2030 Agenda for Sustainable Development & United Nations Sustainable Development Goals. The target is to reduce GHG emissions intensity per GDP by 35% by 2030 relative to the 2005 level and to have renewable energy contribute to 31% of the total energy mix by 2025.
The Zico Law authors highlight in this infographic a series of existing and upcoming initiatives and programmes introduced by Malaysia in achieving the nation’s green aspiration of sustainability. Moving forward, it is expected that an array of initiatives and programmes would be rolled out by the Government with a focus on sustainable economic recovery, as part of Malaysia’s unwavering commitment in transforming the nation for the better by 2030.
Download the infographic below. |
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Smart City Handbook: Malaysia Launch Event
The Smart City Handbook: Malaysia Launch event, held on 22 June 2021 by the UK Foreign, Commonwealth and Development Office (FCDO), Department for International Trade (DIT) and the Ministry of Housing and Local Government Malaysia (KPKT), was graced by H.E. Charles Hay, High Commissioner, British High Commission Kuala Lumpur and YB Datuk Hajah Zuraida Kamaruddin, Minister of Housing and Local Government Malaysia.
Download the relevant materials below: |
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Independent Expert Group Appointed to Advise UK Government on Standards for Green Investment
The UK’s Treasury Department announced the launch of a Green Technical Advisory Group (GTAG) on 9 June 2021 to oversee the Government’s delivery of a Green Taxonomy – a framework setting the bar for investments that can be defined as environmentally sustainable.
Aimed at tackling "greenwashing", the Green Taxonomy will consist of technical screening criteria and provide a common and defined set of standards and terms to evaluate and compare the environmental credentials of financial products. In turn, this will improve understanding of environmental impact, helping companies and investors make informed green choices, support investment in sustainable projects and boost efforts to tackle climate change.
Related news article here. |
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British Malaysian Chamber of Commerce Berhad 201801018075 (1280091-P) E04C0, 4th Floor East Block, Wisma Golden Eagle Realty, 142-B Jalan Ampang, 50450 Kuala Lumpur Copyright © BMCC 2021 |
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