The Business Times
business-time-50

Transitions, offsets at greenwashing’s next frontier in Asia: investor group

google-preferred-sourceAdd BT as a preferred source
Janice Lim

Janice Lim

Published Mon, May 1, 2023 · 05:50 AM
    • Financial institutions in Asia may soon find themselves being accused of greenwashing in a variety of new forms. This includes instances where they have provided transition finance to high-carbon emitting companies that do not have credible transition pathways, included greenwashed companies in their green portfolios, marketed a company or product as green even though it relied on carbon credits to offset its emissions, or are being policed by their competitors.
    • Financial institutions in Asia may soon find themselves being accused of greenwashing in a variety of new forms. This includes instances where they have provided transition finance to high-carbon emitting companies that do not have credible transition pathways, included greenwashed companies in their green portfolios, marketed a company or product as green even though it relied on carbon credits to offset its emissions, or are being policed by their competitors. PHOTO: PIXABAY

    THE NEXT frontier of greenwashing could include unsubstantiated claims of transition financing or an over-reliance on offsets, says a report by the Asia Investor Group on Climate Change (AIGCC) and environmental law non-profit ClientEarth.

    The report, an in-depth look at greenwashing in Asia’s finance industry, said that regulators will need to contend with emerging –and creative – forms of misleading environmental claims.

    “Transition-washing” is particularly complex, given the rising importance of transition finance by financial institutions and regulators in this region. Transition finance refers to providing interim capital for high-carbon activities until they can be replaced with greener alternatives.

    greenwashingClimate financingsustainable finance

    TRENDING NOW

    Eugene Lai (left) says that he was sharing a view with Tan Chian Khong that the board needed a refresh and that it was not an explicit direction to resign.

    CSE Global independent director quits after clashes with chairman Eugene Lai over board refresh

    Some industry watchers wonder if Orchard Road can hold its own next to competing retail destinations, both global and local.

    What’s wrong with Orchard Road? Experts weigh in on the street’s cachet and its future

    Siranudh Scott had caused an internet sensation with a video accusing his brother of allegedly abusing him during his childhood years.

    ‘I felt like dying’: Thai Singha beer scion speaks up after disclosure of alleged sexual abuse

    The exterior (left) and interior (right) views of Waterwall House, featuring glass interfaces, open voids, split levels and raw concrete walls.

    Rare brutalist Singapore house opens to the public before changing hands

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More