As region regresses on green transition, UN agency calls for concerted action

George Lam, chair of its Sustainable Business Network (ESBN), said the Asia-Pacific is not on track to meet any of the Sustainable Development Goals (SDGs), citing ESCAP's report “Asia and the Pacific SDG Progress Report 2022: Widening Disparities amid Covid-19”.

The region has regressed on two key goals, namely, Climate Action (SDG 13) and Responsible Consumption and Production (SDG 12), Lam added.

"The discussions at the 27th UN Climate Change Conference highlighted the pressing reality that Asia is where the fight against climate change will be won or lost," Lam said.

"Throughout the region, businesses, large and small, need to take action," he stressed.

Action will be required not only from large multinationals but also from the smaller companies that support global supply chains, he said.

The Asia-Pacific Green Deal for Business was launched on August 26 last year. It recognises that a green transformation of the economy is necessary for the well-being of all people.

"To bring about the necessary transformation, the private sector will need to work hand-in-hand with the public sector to ensure that goals around decarbonisation, green infrastructure and urbanisation, and green finance are aligned," Lam said.

"The ESBN can serve as an important driver to help the business world move forward by identifying networks, platforms, and methods to support improved sustainability practices and outcomes," he said, before listing the five pillars of the Asia-Pacific Green Deal for Business:

1. Advancing a zero-carbon, affordable and resilient energy system. The energy system must be decarbonised under the commitments of the Paris Agreement and the 2030 Agenda for Sustainable Development. Access to zero-carbon energy must be provided for all.

2. Building smart, low carbon, water-secure and climate-resilient cities, infrastructure and mobility. Greenhouse gas emissions from construction and operations of urban infrastructure and its activities must be reduced further, while water security and resilience to future crises are strengthened.

3. Mobilising public and private finance for green transformation. New investment must be directed to sustainable energy, infrastructure, logistics, food production, and water supply for the new green economy.

4. Accelerating innovations for sustainable development. Now is the time to implement new business models and solutions to improve efficiency, lower costs, and reduce environmental impact from the way we produce.

5. Changing towards a more circular economy. New circular production and consumption practices will bring new business and employment opportunities, to maximize resource efficiency and minimize environmental impacts.

Sustainable business

Companies all over the world are working on the green transition to deal with impact of climate change, said Esther An, chief sustainability officer of Singaporean real-estate multinational City Developments Limited.

"If we do not do anything, the global temperature could rise by up to 3.8C," she said, advising entrepreneurs to work with all stakeholders to reduce greenhouse gas emissions.

Entrepreneurs should be aggressive in green transition and take a forward-looking view, she said, adding that micro, small and medium-sized enterprises (MSMEs) can start their transition to sustainability based on what is important to their business.

Malchutar Kingnet, head of the renewable energy business section of the Electricity Generating Authority of Thailand (EGAT), called for regulations to be imposed so that businesses can be ready for the green transition.

Renewable energy is a key tool for reducing greenhouse gas emissions, she said.

EGAT has policies and technologies to reduce carbon emission, she said, pointing to its efforts to encourages people to install solar panels on their rooftops and use renewable energy, Malchutar explained.

EGAT is also studying how to use carbon capture, utilisation and storage and other green technologies to reduce carbon emissions further, she said.

Sineenuch Kokanutaporn, managing director of Thai Eastern Group Holdings, said it is working on sustainable development to meet European Union (EU) regulations, such as deforestation-free product regulation. The company produces rubber, palm oil and renewable energy. It will be required to meet EU regulations to export to the massive market.

Sineenuch said the company’s sustainable development plans are in line with His Majesty the King Bhumibol Adulyadej the Great's Sufficient Economy Philosophy to ensure that industry and environment coexist.

The company's sustainable development covers the management of water, waste, energy, supply chain and biodiversity conservation, she explained.

"We have turned ourselves into an organic waste recycler," she said.

The three executives agreed that MSMEs should reduce greenhouse gas emissions so that the world can achieve its net-zero emissions goals.

Banks as batteries

Innovations, incentives and access to funding are necessary for driving the environmental, social and governance framework, speakers told the forum.

Businesses should have sustainability reports to track and monitor their green transformation progress in line with international standards, they said.

Green finance is necessary for all entrepreneurs to achieve their sustainable development goals, said Takerng Osirichaivet, senior vice president of Kasikornbank.

If SDGs are navigators and policymakers are drivers, banks are the batteries that make electric cars move forward, he said.

Takerng added that all sectors should work together on sustainable development and align their efforts in one direction.

The Asia-Pacific region made a commitment towards net-zero carbon emission during the Asia-Pacific Economic Cooperation meeting in Bangkok last year, said Jamjun Siriganjanavong, executive vice-president at Bank of Ayudhya.

Apart from cooperation among sectors, she said Thailand should develop a sustainable finance taxonomy to promote sustainable development in line with global trends.

Suntad Srijarupurk, vice-president of corporate sustainability at United Overseas Bank, said sustainable finance is among the factors that encourage entrepreneurs to pay attention to net-zero carbon emissions.

A sustainable finance taxonomy should benefit large and small enterprises, allowing them to turn to cleaner solutions, Suntad said.

Criteria and requirements related to sustainable finance should be in place to support business in the long term, he added

Jirawat Panpiemras, head of the sustainability team at Bangkok Bank, said green finance should be able to encourage entrepreneurs to work on sustainable development, such as favourable incentives.

A digital platform is also necessary to support banks and entrepreneurs in data integration, he added.

Sustainable finance lets companies access renewable solutions, said Susan Olsen, a senior investment specialist for private sector financial institutions in the Mekong Region at the Asian Development Bank.

She said MSMEs should be able to access green finance to keep up with global trends and the benefits of the green transition should be explained to them.

All bank executives agreed that MSMEs are critical to the green economy. They should be aware of green finance's risks and opportunities, so they can work on sustainable development in the right way, they said.