Social and Governance (ESG) financing scene is
gaining traction against the backdrop of supportive
government policies such as tax incentives and
growing stakeholder pressure for responsible
financing. The S$1.2 billion green loan raised by
Singapore-based Frasers Property is the latest in a
series of green loan deals in the region.
Growing Appetite for
according to insights research conducted by East &
Partners for HSBC on Sustainable Financing and ESG
Investing in the
first half of 2018, close to two-thirds of investors
have already integrated ESG factors into their
investment process, but Asia is much further behind
on the trend with less than half currently invested
in sustainable strategies.
However, changes in
investor appetite are imminent. The proportion of
sustainably managed assets is set to grow
significantly faster in Asia over the coming year,
up 22.0 percent year-on-year. This increase in
demand is primarily driven by commercial outcomes
including attractive financial returns and tax
incentives, proving the market is sustainable.