Asia would lead the world in sustainable financial growth

Asia will be the fastest growing region for sustainable finance over the next decade after a slow start relative to the rest of the world, according to the asset management unit of Deutsche Bank AG.

“Asia will be the engine of growth”Said Wednesday Priscilla Lu, Managing Director Leading Sustainable Investments in Asia in DWS Group, at the BNEF Summit in Shanghai. “In recent years, there has been an awakening to the importance of sustainable finance”.

Sales of sustainable debt, including green bonds and other types of securities, have exploded this year, already exceeding $ 1.3 trillion, according to BNEF estimates. However, Asia accounts for only 18% of global emissions.

The region is quickly catching up with new regulations urging companies to improve transparency and take steps to reduce emissions, he said. Stephanie Vallance, Director of Sustainable Finance at Australia & New Zealand Banking Group Ltd.

“Sustainable reporting is still very nascent, but that’s evolving rapidly”He said, adding that the adoption of global standards of transparency, or taxonomy, would help drive the market further.

Demand for so-called transition bonds, in which large issuers sell debt to finance a shift to more environmentally friendly operations, has been slow from the start as many companies opt for the more traditional green or linked debt. to sustainability, he noted Vallance.

Overall, the Sydney-based bank has seen record growth in sustainable financing volumes this year.

“Net zero is the greatest business opportunity of our generation“, said Vallance, echoing the comments of his bank’s chief executive. “Without a doubt, we observe that this develops according to the demand of our clients, borrowers and investors.”.