Asean needs track record in returns from ESG projects to attract private capital

[SINGAPORE] South-east Asian markets need to build a track record of delivering returns on projects aligned with environmental, social and governance (ESG) objectives to attract more private-sector capital, said an executive of the United Kingdom’s development finance institution.

Srini Nagarajan, who is managing director and head of Asia at British International Investment (BII), noted that, for that to happen, the region needs to develop a regulatory framework that is steady and favourable towards sustainability-focused investments, as well as streamline the processes in executing such projects, such as in land acquisition rights, grid infrastructure and transmission networks.

This is all the more important in the current environment where interest rates are elevated, as the incentives for investing in emerging markets have become much more strained, added Nagarajan, who was speaking with The Business Times.