Lakshmi Kripa Meiyappan

Glad to be given the trust and the opportunity by Stewardship Commons to self publish my commentary. This time, I wanted to focus on the work of asset managers and how they shape and define financial flows in the sustainability space. This commentary examines the crucial role asset managers can play in driving sustainability in ASEAN. It explores their existing influence, potential to mobilize climate-focused investments, and capacity to create effective sustainability indicators for regional governments. It emphasizes the need for asset managers to bridge investment gaps, ensure efficient capital allocation towards climate tech, and actively engage with policymakers to accelerate the region's green transition. It concludes with a call to action for asset managers to embrace this responsibility and leverage their expertise to build a sustainable and prosperous future for ASEAN. The image is entire AI created. I am very thankful that simple prompts can give me the flexiblity of having unique images that often gave me good results in what I wanted to convey in most of my commentaries. #ASEAN #Sustainability #AssetManagers #ClimateTech #ESG #ImpactInvesting #Stewardshipcommons #GSFN

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Monitoring capital flows on a timely basis and assessing the vulnerability of financial markets are crucial, notably for #ASEANplus3 emerging market economies. This working paper constructs a timely, high-frequency database of non-resident portfolio flows for ASEAN+3 economies and uses the data to develop a framework for assessing risks of sudden outflows. ▶️ Read: bit.ly/48f3l5U

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Good insights. Full report in the link below.

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The push for Environmental, Social, and Governance (ESG) adoption by Small and Medium Enterprises (SMEs) is a topic of discussion. Many SMEs already informally practice ESG through energy-saving measures and community support, lacking formal documentation. However, the current push by BNM for ESG adoption is perceived as a top-down directive that may not align with SME realities. Formal ESG frameworks often demand time, resources, and expertise that SMEs may struggle to allocate, especially when focused on survival. This could lead to overwhelming demands that hinder meaningful adoption rather than encourage it. While most SMEs are already moving in the right direction regarding ESG practices, they lack mechanisms to formalize and assess these efforts. Instead of imposing new burdens, the emphasis should be on acknowledging existing practices and assisting SMEs in enhancing and documenting them. BNM should go beyond directives and provide simplified ESG templates, incentives such as grants or tax breaks, and capacity-building programs tailored specifically for SMEs. These initiatives are crucial in ensuring a smoother transition towards ESG practices. By recognizing and supporting the ongoing efforts of SMEs, BNM can enable them to compete on a global scale without overwhelming them. This approach fosters sustainable growth and inclusivity in the long term. #biingBank #coverage #bpmb #impactcapital #pembangunan #ESG #SME Source: [Bernama](https://lnkd.in/gt9Jxheb)

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ESG Regulatory Tracker: South Korea’s proposed sustainability standards, UK transition plan guidance, US emission reduction rules for power plants Regulation is shaping the sustainability agenda and changing the way companies do business in different jurisdictions but keeping pace with constant regulatory updates has become a mammoth task for businesses and investors. In this recurring series, S&P Global Sustainable1 presents key environmental, social and governance regulatory developments and disclosure standards from around the world. In this month's update, we look at South Korea’s proposal to align with standards developed by the International Sustainability Standards Board (ISSB), the UK’s guidance on transition planning for carbon-intensive sectors and new US rules aimed at reducing emissions.

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The Singapore Asia Taxonomy (SAT), the world’s first taxonomy to comprehensively provide green and transition definitions across 8 focus sectors, was launched in December 2023. In the past month, two leading corporate players OUE Limited and Sembcorp Industries Ltd announced efforts in alignment with the SAT: ❇️ On 30 September 2024, OUE Limited announced its inaugural five-year green bond of OUE Limited, with the underlying use of proceeds aligned with the SAT’s green criteria. Proceeds of the bonds will be allocated to the financing and refinancing of four green buildings certified under the Building and Construction Authority Green Mark 2021 certification scheme. CIMB Singapore, OCBC and HSBC Singapore were the Joint Lead Managers, Bookrunners and Green Finance Structuring banks to the Issuer for the offering of the Notes. The independent external review is provided by Sustainable Fitch: https://lnkd.in/guc3hk2q ❇️ Sembcorp recently unveiled its updated Green Financing Framework, which is aligned with the SAT, alongside the Green Bond Principles by ICMA - International Capital Market Association and the Green Loan Principles by Loan Market Association (LMA), APLMA (Asia Pacific Loan Market Association) and LSTA. This framework will apply to all Green Finance Transactions raised or issued from 1st October 2024. We look forward to seeing more SAT adoption among financial institutions and corporates, particularly in the frontier area of transition finance: ❇️ Anticipated developments ahead include the APLMA-led initiative to develop transition finance principles and guidance. ❇️ Keep a look-out for announcements from the Singapore Sustainable Finance Association (SSFA) Taxonomy Work Group in the coming months as they develop best practice guidance and FAQs to support financial institutions and corporates in the interpretation and adoption of the SAT’s green and transition criteria. Pamela Lee Bey An Lim Ivan Tan Shi Min Tan Sui Hui Lim Adeline Chan Vania Xu Felix Lim

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Saw this quote today: “Addressing climate risk requires a decarbonisation strategy that goes beyond merely considering emissions within the portfolio in isolation - it is crucial to also address the real-world economy’s transition. A thoughtful climate strategy should be complemented by active engagement and voting activities that support that transition. A pure passive investment approach on climate may prove inadequate and expose portfolios to inherent risks and biases, as shown by our latest research findings.” What a load of total bullshit. We run both index and active strategies. All our Article 9 strategies are index sustainable/impact strategies. Here’s why this assertion is a lie: 1) Engagement and Voting have nothing to do with the investment management approach; they’re about seeing yourself as a company owner AND a shareholder. It’s about stewardship, not whether you’re active or passive. 2) The “Active” in Active Engagement is a farce. The term has been hijacked by the active mutual fund industry. All engagement is active; there are just different degrees of active. What they’re doing is implying that there’s such a thing as passive engagement. Don’t buy it. It’s PURE marketing. 3) Our analysis shows that, on average, it’s active mutual funds that are constructed for portfolio decarbonisation score optimisation (i.e., gaming the system to rank higher on MSCI or Morningstar). Why? Because they can, and the temptation is too high. If I create a so-called “dumb” index, on the other hand, I’ll always be restricted by my index rebalance schedule. 4) Further, our research shows that it’s the exception, not the norm, that mutual fund managers focus beyond “available” ESG metrics to forward-looking impacts in water, soil, ecosystems, and biodiversity. Indeed, Rize ETF found success as a business PRECISELY because clients told us we’re actually “doing the work” and “charging less.” 5) The claim that “a pure passive approach may expose portfolios to inherent risks and biases” is laughable. The exact opposite is true. Our research shows that active mutual fund strategies exhibit the most extreme biases because no two people’s sustainability is the same. Take the food transition as an example. One well-known active manager is currently pushing a degrowth agenda through his portfolio, believing – we believe falsely – that smallholder farms and artisanal brands are the path to food utopia. Meanwhile, another (who shall remain unnamed) has adopted a purely pragmatic ecomodernist approach, balancing sustainability objectives with the practicalities of feeding a global population. For instance, synthetic fertilisers, gene editing, and crop science are critical to food security but may come with negative environmental externalities and ethical considerations. In a climate adaptation scenario, however, we won’t survive without them, and this underscores the trade-off between an environmentalist vs. ecomodernist approach to the food transition.

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In this newly added #71stVideo of my #YouTube channel, I shared my thoughts from a researcher’s perspective on the theme ‘Climate Change and Profitability – Harnessing Sustainability for Long-Term Growth.’ This keynote speech was delivered at a seminar organized by The Institute Of Cost Accountants Of India in Kolkata on November 5, 2024. During the thirty-minute talk, i made efforts to cover the following: § #Climate change and profitability – Synonyms of #Climate, #Profit and #Profitability from a researcher’s perspective    § Integrate #ClimateThinking into #NetZero #BusinessModels o  Determinants of profit and profitability for strategic business modeling o  Proactive climate change initiatives for value generation § Approaches to climate change management  – #GreenLine and #6PBottomline. You may please visit my personal YouTube channel and watch the video https://lnkd.in/dPVvkkFU    Chittaranjan Chattopadhyay, Asim Kumar Mukhopadhyay, Dr. Paritosh Nandi, CMA Dr. Debaprosanna Nandy, Secretary(Officiating) PhD (Economics), FCMA, MBA, MCom, MIPHA

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Mother Nature's tantrums don't discriminate between campaign promises and commercial ventures. When she unleashes her fury, both profit margins and political platforms become sandcastles in a hurricane. While Beijing's bureaucrats seem to be reading the meteorological tea leaves, their global counterparts appear content playing weather roulette with their nations' futures. One wonders: in the game of ecological chess, are some leaders thinking five moves ahead while others are still learning the rules? #Climatechange #Energytransition #China #EVTariffs #Electrification https://lnkd.in/ejw_2cdw

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A recent survey by the Sustainable Energy Association of Singapore (SEAS) found that uncertainty over the credibility of carbon credits in reducing greenhouse gas emissions could be curtailing their trade in Singapore. Indeed, integrity has long been an issue in the global #carboncredit market, but multiple initiatives are now underway to improve integrity and foster greater transparency. Alongside the launch of the MSCI Carbon Project Ratings earlier this week, #MSCICarbonMarkets and #MSCIResearch published a paper outlining the state of integrity in the global carbon-credit market and unpacking the various underlying criteria of integrity. Key observations? Overall, of the more than 4,000 projects assessed by MSCI Carbon Project Ratings, fewer than 10% of the projects are rated in the AAA-A band. There are, however, some early positive signs of a trend to increasing integrity, with gradual shift in retired credits moving toward higher-integrity projects and new projects being developed that are on average of higher integrity. Read the report to find out more - http://ms.spr.ly/6048mdCJg

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ASEAN has a bright future as a sustainability leader. My optimism goes beyond knowing that stakeholders in the region understand the importance of the climate agenda and are planning commitments and investments to achieve a sustainable future. More importantly, it is ASEAN’s will of steel that will cut through the region’s differing priorities and strengths, and give us our best chance at achieving our climate goals. For more on my views: https://lnkd.in/gJGRKPmE   #climateaction #sustainablefinance #netzero

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A survey by DBS and Bloomberg revealed that 92% of Indian SME business leaders consider ESG a vital requirement for their companies. Demonstrating a commitment to ethical business conduct, environmental stewardship, and social responsibility builds trust among stakeholders. Consumers also increasingly favor businesses with a positive environmental impact. Despite the clear benefits, many challenges remain. SMEs often grapple with limited financial and human resources, posing a substantial hurdle to investing in sustainable practices and reporting. Read my article on how SMEs can embrace sustainability and overcome reporting challenges. #sme #sustainability

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🌟Here's an exciting opportunity to scale your impact! 2024 DBS Foundation Grant is now open for applications. This year, the grant will be focused on scaling innovative social enterprises (SEs) and small and medium-sized enterprises (SMEs) that help create a more inclusive world and bring enduring change to vulnerable communities in Asia. We would like to invite businesses solving for urgent needs such as - providing food security, shelter, access to basic education and healthcare (including mental health), or fostering financial inclusion for those in need, to apply. Since 2015, DBS has awarded more than 140 enterprises (SEs and SMEs) with grants to help them scale up their business and impact. They are looking for businesses that have proven market traction and at least 2 years of track record. Let's join hands to co-create a more inclusive, sustainable and mindful world. #UnicornsForGood #DBSFoundationGrant #DBSFoundation #Impact #SocialInnovationPark https://loom.ly/YzOzILo https://loom.ly/YzOzILo

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🌟Here's an exciting opportunity to scale your impact! 2024 DBS Foundation Grant is now open for applications. This year, the grant will be focused on scaling innovative social enterprises (SEs) and small and medium-sized enterprises (SMEs) that help create a more inclusive world and bring enduring change to vulnerable communities in Asia. We would like to invite businesses solving for urgent needs such as - providing food security, shelter, access to basic education and healthcare (including mental health), or fostering financial inclusion for those in need, to apply. Since 2015, DBS has awarded more than 140 enterprises (SEs and SMEs) with grants to help them scale up their business and impact. They are looking for businesses that have proven market traction and at least 2 years of track record. Let's join hands to co-create a more inclusive, sustainable and mindful world. #SocialInnovationPark #UnicornsForGood #DBSFoundationGrant #DBSFoundation #Impact #SocialEnterprises #SME https://loom.ly/UfsJ3xE

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Folks working on or interested in #energytransition and scaling #transition finance for accelerating Asia’s #coal retirement, please check out this new report from Climate Smart Ventures that we just released today! I am grateful to have had the opportunity to co-author this report with CSV’s Managing Partner and Co-founder Lawrence Ang. We include deep expertise from our CSV colleagues Matthew Carpio, Kanchuya Sukdheva, Nian Sayoc, and others, as well as from a number of external reviewers across #Asia. The report “The Future of Transition Finance in Asia: Addressing the Risk-Return Dilemma & Unlocking Capital for the Coal to Clean Energy Transition” can be found here: https://lnkd.in/d4mFf58f and press release here: https://lnkd.in/d-zbXGbU. More details are below. #decarbonization #sustainability #transitionfinance #ESG #sustainablefinance.

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