Charting the future of green finance in Asia

AS sustainable finance continues to gain traction across Asia, will 2021 become synonymous with ESG (environmental, social and governance) and the greening of the region's financial ecosystem?

Sustainable financing has gained significant momentum in 2020 and regulators across Asia have stepped up efforts to promote the development of green finance and support the region's transition to a sustainable future. For instance, the Monetary Authority of Singapore (MAS) announced in March that it will soon begin placing US$2 billion with selected asset managers that are committed to deepening green finance activities out of Singapore, as part of its wider efforts to attract green funds and sustainability-focused asset managers.

Fund flows into ESG investments in Asia and across the globe saw a sharp increase in 2020 compared to 2019, with Refinitiv's Sustainable Finance Review indicating that sustainable finance bonds hit an all-time annual record of US$544.3 billion in 2020, more than double the issuance levels in the previous year.