At the recent Sibos 2024 conference, BNP Paribas’ Chuaoni Huang highlighted that APAC supplies nearly 25% of the global sustainable bonds market, an assertion made during a panel focused on climate resilience and social impact.
According to Finextra, moderated by Oliver Zhang from EY, the panel included insights from Dr. Shi Rong of the UN Development Programme (UNDP) China and Athina Chatzi from Temenos, illustrating a broad engagement across industries on sustainability and climate adaptation issues.
Rong emphasized the declining attention and funding towards climate adaptation, dropping from 7% in 2020 to 5% in 2022. She argued that while climate mitigation garners more focus, adaptation strategies are equally vital and currently under-supported.
The UNDP’s projects aim to ensure that social equity is integral to environmental strategies, stressing that sustainable development should not compromise other critical goals.
Huang detailed BNP Paribas’ commitment to the decarbonisation agenda post-Paris Agreement, including ceasing coal finance and setting ambitious 2030 goals. She noted that the sustainable bond market has grown significantly, reaching $810 billion globally.
Of this, approximately 60% is comprised of green bonds targeting renewable energy, low-carbon transportation, and green building projects. The substantial contribution from APAC, according to Huang, mirrors the region’s significant green capital expenditures.
Chatzi discussed how Temenos supports climate resilience through technological innovation, including cloud computing and AI. She described initiatives like engaging with a climate tech company to assess and reduce the carbon footprint of software and promoting sustainable software engineering practices. Temenos’s approach aims not only at mitigation and adaptation but also at leveraging these challenges as avenues for growth and innovation.
The panelists concurred on the need for an inclusive green transition that safeguards those adversely affected while maximizing the socio-economic benefits derived from sustainable practices. Dr. Rong pointed out that China’s energy transition might lead to substantial job losses in the coal sector, suggesting that transition plans should include protective measures and broader social considerations.
These discussions at Sibos 2024 underscore the evolving landscape of sustainable finance, where collaboration and innovative approaches are seen as key to addressing both the environmental and social facets of climate change.
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