AP Audit & Consulting
SUSTAINABLE FINANCE
THE CASE FOR CHANGE
Q: Think we can just flip a switch and knock 1.5°C off global temperatures? Spoiler alert: it’s a little more complicated than that!
ECONOMIC IMPACT OF CLIMATE CHANGE
Q: How much do you think a 1°C rise in temperature is costing the global economy? A latte? A vacation? Or something bigger?
ESG MATTERS; FINANCIALLY
Q: Are companies treating ESG commitments like a game of hide-and-seek, or are they finally ready to face the music and pay up for their eco-fibs?
A: Check out the fines for yourself
Q: Any Singapore companies?
A: Yes! Get in touch for more details
ESG RATINGS: MORE THAN CLIMATE CHANGE
Q: How many issues does it take to rate a company on ESG? It's more than just a couple of buzzwords!
Q: Think you can handle saving the world one goal at a time? Let’s see if you’re up for the SDG challenge!
A: Take the challenge:
SUSTAINABILITY REPORTING IN SINGAPORE
Q: Is it just another checkbox for companies, or could it be the secret sauce to turning our green goals into reality?
SUSTAINABLE FINANCE IN SINGAPORE
Q: What do you call a financial instrument that not only helps you save the planet but also gives you a warm, fuzzy feeling inside?
A: Sustainable finance! 🌱
In Singapore, sustainable finance includes financial instruments like green bonds, social bonds, sustainability-linked bonds, and sustainability-related loans, all designed to fund projects that promote environmental and social good.
In 2023, sustainability-related loans in Singapore hit $30.4 billion, up from $25.2 billion in 2022 and $21.1 billion in 2021—marking six years of growth! These loans fall into categories like:
Green Loans: Used to finance environmentally sustainable projects.
Social Loans: Funds allocated to social projects.
Sustainability-Linked Loans: Offer incentives to borrowers who meet sustainability targets.
GREEN BOND PRINCIPLES
Q: Are the Green Bond Principles the ultimate guide for companies going green, or just a fancy way to say, “Trust us, we promise our money is doing good things!”?
A: It’s the real deal!
The Green Bond Principles (GBP), created by major financial institutions like Bank of America, Citi, and JPMorgan Chase in 2014, are governed by the International Capital Market Association (ICMA). These principles ensure that green bonds live up to their promises with four main components:
Use of Proceeds: Funds must go to actual "green" projects.
Project Evaluation: Clear plans for selecting projects.
Management of Proceeds: Transparency in managing funds.
Reporting: Regular updates on the funds' usage and environmental impact.
To go even further, many green bonds also follow the Climate Bonds Initiative principles, ensuring alignment with the Paris Agreement for maximum sustainability impact!
GREEN, SOCIAL, AND SUSTAINABILITY (GSS) BONDS AND LOANS
Q: Is the ASEAN sustainable debt market on a green rollercoaster ride, or are we just seeing a bunch of bonds getting their eco-friendly glow-up with a record-breaking $24 billion in GSS bonds and loans?
A: Let’s just say the market’s looking pretty green—and it’s only getting brighter!
THAI UNION: MAKING WAVES IN SUSTAINABILITY
Q: Is Thai Union making waves in the seafood industry with its sustainability efforts, or are they just fishing for compliments with their $800 million in sustainability-linked financing?
A: Thai Union is making major waves—no fishy business here!
Their SeaChange® strategy aims to promote “Healthy Living, Healthy Oceans,” and in 2021, they launched Thailand's first-ever sustainability-linked bonds and loans totaling $800 million! These financial instruments are tied to performance targets like reducing greenhouse gas emissions and increasing the use of electronic monitoring on tuna vessels.
Key Highlights:
Sustainability-Linked Financing: Includes loans and bonds tied to environmental and social KPIs like reducing carbon emissions and improving monitoring on tuna vessels.
Blue Finance Initiative: Focusing on projects that benefit oceans and the seafood industry, Thai Union is diving into financing that promotes sustainability.
Ambitious Performance Targets: With goals like reducing emissions by 4% annually and increasing the percentage of tuna sourced from vessels with electronic monitoring, Thai Union is casting a wide net to protect both people and oceans.
Future Commitments: Thai Union plans to reveal updated SeaChange® goals in 2023, focusing on biodiversity, climate change, and sustainable resource management through 2030.
Thai Union is doing serious work for sustainability—whether you're a seafood lover or eco-warrior, this is a company to keep an eye on!
GREENWASHING
Q: Is "greenwashing" just a fancy term for when Mother Nature rolls her eyes at companies claiming to be eco-friendly while still guzzling fossil fuels like there’s no tomorrow?
A: Close! Greenwashing is when companies exaggerate their environmental efforts to appear more sustainable than they really are. It’s like slapping a leafy sticker on a gas-guzzler and calling it an eco-car. The goal? To trick consumers into thinking they’re supporting green practices when the company is doing very little for the planet. Always look beyond the label!
SINGAPORE TAXONOMY FOR SUSTAINABLE FINANCE
Q: Is the Singapore-Asia Taxonomy for Sustainable Finance the ultimate cheat sheet for businesses trying to go green, or just a fancy way of saying, “Let’s make sure everyone’s on the same page about what ‘sustainable’ really means”?
GREEN FINANCING IN SINGAPORE
Q: Is Singapore’s Enterprise Financing Scheme – Green the ultimate superhero for SMEs trying to save the planet, or just a fancy way of saying, “We’ll help you go green, but first, let’s talk about those loan limits!”?
A: It's a superhero for SMEs!
Key Features of EFS-Green:
Loan Types and Support: Various financing options for green projects, from S$3 million for development capital to S$50 million for project loans.
Eligibility Criteria: Businesses must be registered in Singapore, have at least 30% local equity, and maintain annual sales turnover of no more than S$500 million.
Focus on Technology and Innovation: Targets projects that address environmental challenges, like solar energy and electric vehicles.
With EFS-Green, SMEs are equipped to make an environmental impact while building a sustainable future! Contact us for more details.
SUSTAINABLE INVESTING IN SINGAPORE
Q: Is sustainable investing in Singapore like planting a money tree that helps save the planet, or just a fancy way for investors to wear eco-friendly capes while counting their cash?
A: It’s like planting a money tree that’s also a superhero for the planet! 🌳💰
Sustainable investing is a growing trend where you align your investments with environmental, social, and governance principles. You’re not just growing your wealth; you’re making the world a better place.
For example, Temasek Holdings has committed S$44 billion to sustainability initiatives—12% of its total portfolio. They’ve already reduced emissions by 22% and aim for net-zero by 2050!
Key Trends Shaping Sustainable Investing:
Regulatory Push: MAS is requiring financial institutions to incorporate environmental risks, making it easier to invest sustainably.
Green Bonds and Funds: The market for green bonds is booming, and the MAS Sustainable Bond Grant Scheme helps companies raise funds for green projects.
Consumer Demand: Nearly 45% of consumers in Asia-Pacific prioritize sustainable products, influencing companies to adopt greener practices.
Emerging Financial Products: With ETFs focused on ESG criteria, sustainable investing is becoming more accessible.
Sustainable investing isn’t just about feeling good—it’s a growing market with real-world impact, and Singapore is leading the charge! 🌍💚
Sustainability Revolution, Thailand
https://www.bangkokpost.com/ebooks/sustainability-revolution-aug-2024/
