Growth opportunities aplenty for sustainable finance

IT IS very encouraging to see many of our corporate customers working on their sustainability strategies and embarking on their sustainability journeys. This trend is only at its infancy, and the sustainable finance market still has tremendous growth opportunities ahead. In Singapore, the property sector is one of the most active. Led by government initiatives, green buildings are becoming a new norm, which has contributed to a robust growth in the green loan market. We are also seeing sustainable finance opportunities emerge in other sectors including agricul-ture, energy efficiency, and utilities.

Another area of growth we have witnessed is in renewable energy financing. It is an important pillar of support for nations' energy transition towards green energy and their commitments towards the Paris Agreement on climate action. With the cost of renewable energy falling, and its increasing competitiveness against conventional energy, we see ample opportunities. Currently, Taiwan is a bright spot in the region given its government's offshore wind target of 5.5GW and a renewable energy target of 20 per cent, both by 2025. This positive momentum in Taiwan signals "winds of change", and I expect other Asian countries such as Vietnam and Indonesia to follow suit in the near term.

As a bank, we recognise this trend. We have gone beyond just providing green loans to our customers. We have partnered our customers, existing and new, in their journeys to identify and realise their sustainability vision. We have advised them on establishing their green frameworks, which are essential to support their sustainability strate-gies and communications. This is increasingly important as sustainability becomes a rising business mandate.