Sustainable and Green Finance Institute (SGFIN)

During this week's research seminar series, we had the privilege of welcoming Associate Professor Román Carrasco from the Department of Biological Sciences at National University of Singapore. Prof Roman's talk explored the importance of companies considering biodiversity risk, as well as the current tools and research available to help evaluate this risk.   Specifically, Prof Roman shared why companies should account for biodiversity risk and how today’s consumers are increasingly aware of how firms and financial institutions impact biodiversity. He explained the efforts being made into pricing biodiversity risks, highlighting the frameworks and tools available to measure this risk and its associated impacts. He emphasized that biodiversity issues are multifaceted, with no single tool currently capable of addressing a problem of this magnitude. The recent launch of The Taskforce on Nature-related Financial Disclosures (TNFD) represents a significant step in the right direction, though more work is needed to advance efforts in tackling biodiversity-related risks.   Prof Roman’s sharing has helped our Master students in Sustainable and Green Finance program to gain a deeper understanding of the current landscape and the actions required to further develop solutions for biodiversity challenges.   We extend our sincere thanks to Prof Roman for his enlightening and thought-provoking seminar. #biodiversity #biodiversityrisk #sustainablefinance #impactinvesting Sumit Agarwal Johan Sulaeman Zhang Weina (Post contributed by Desmond Tay, Research Associate at NUS SGFIN)

𝗧𝗮𝗽𝗽𝗶𝗻𝗴 𝗔𝗦𝗘𝗔𝗡’𝘀 𝗥𝗲𝗻𝗲𝘄𝗮𝗯𝗹𝗲 𝗘𝗻𝗲𝗿𝗴𝘆 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗧𝗵𝗿𝗼𝘂𝗴𝗵 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗠𝗮𝗿𝗸𝗲𝘁𝘀 Sustainable and Green Finance Institute (SGFIN) has collaborated with CGS International Securities Singapore to publish the first Industry Report on ASEAN’s renewable energy potential through capital markets. The report delves into renewable energy investments through green bonds and equities across the ASEAN region, providing a roadmap for Singapore-based investors eager to drive low-carbon electricity imports into Singapore. At the heart of the analysis is a critical question: 𝙒𝙝𝙞𝙘𝙝 𝙘𝙤𝙪𝙣𝙩𝙧𝙞𝙚𝙨, 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨, 𝙖𝙣𝙙 𝙜𝙧𝙚𝙚𝙣 𝙗𝙤𝙣𝙙 𝙥𝙧𝙤𝙟𝙚𝙘𝙩𝙨 𝙤𝙛𝙛𝙚𝙧 𝙩𝙝𝙚 𝙗𝙚𝙨𝙩 𝙤𝙥𝙥𝙤𝙧𝙩𝙪𝙣𝙞𝙩𝙞𝙚𝙨 𝙩𝙤 𝙨𝙪𝙥𝙥𝙤𝙧𝙩 𝙙𝙚𝙘𝙖𝙧𝙗𝙤𝙣𝙞𝙯𝙖𝙩𝙞𝙤𝙣 𝙖𝙣𝙙 𝙬𝙝𝙮? By leveraging a quantitative PESTEL framework (Political, Economic, Social, Technological, Environmental, Legal), the research team have developed an objective and customizable method for prioritizing regions to invest in—which can be tailored to individual investor’s principles and different investment contexts. 𝗧𝗼𝗽 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀: • The report highlights several promising opportunities in the region’s green bond market, ready for immediate investment by Singapore investors. • These debt instruments play a key role in achieving Singapore’s ambitious decarbonization goals. • We also provide policy suggestions to further enhance bond-investor confidence in the ASEAN market. https://lnkd.in/gvyxyjZU This industry report emerged from a Capstone project written by the MSGF students Wenjing Long, Roopa Nair, Yizi Liang and 𝗭𝗵𝗼𝘂 𝗛𝘂𝗶, supervised by Senior Research Fellow David Broadstock from SGFIN, Head of Sustainability Kevin W F Lee from CGS International Securities Singapore, and the Deputy Group Head of Research Siew Khee Lim. (Post contributed by Dr David Broadstock) #SGFIN, #energytransition, #renewableenergy, #greenbonds, #investing

🌱 Exciting News from the Sustainable and Green Finance Institute (SGFIN)!🌱 SGFIN recently signed two Memoranda of Understanding (MOUs) with leading institutions in Shanghai. [1️] 𝗠𝗢𝗘 𝗟𝗮𝗯𝗼𝗿𝗮𝘁𝗼𝗿𝘆 𝗳𝗼𝗿 𝗡𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗮𝗻𝗱 𝗜𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝗰𝗲 𝗚𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 (𝗡𝗗𝗜𝗚𝗟) in Fudan University, and [2] 𝗦𝗵𝗮𝗻𝗴𝗵𝗮𝗶 𝗔𝗰𝗮𝗱𝗲𝗺𝘆 𝗼𝗳 𝗔𝗜 𝗳𝗼𝗿 𝗦𝗰𝗶𝗲𝗻𝗰𝗲 (𝗦𝗔𝗜𝗦).   In these MoUs, SGFIN aims to explore research projects on sustainable finance, AI, and big data; potential interdisciplinary educational programs integrating AI technologies with sustainable finance; and improve the quality and consistency of sustainability data, particularly in the Asian context.   The signing was accompanied by a workshop where researchers from NUS and Fudan University presented cutting-edge research on these topics, including Prof Johan Sulaeman who presented research on how AI, including Explainable Natural Language Processing (XNLP), can enhance sustainability data and corporate assessments. His presentation highlighted how AI can help estimate the equity market pricing of corporate carbon footprints and address gaps in sparse sustainability data.   These partnerships represent a step forward in our mission to advance sustainable finance through data-driven, evidence-based, interdisciplinary research. (Post contributed by Saranraj Rajindran, Research Associate at NUS SGFIN) Sumit Agarwal #Sustainability #AI #SustainableFinance #SGFIN #NDIGL #SAIS #Collaboration #GreenFinance #InterdisciplinaryResearch #DataScience

For this week’s industry sharing session for our Master of Science in Sustainable and Green Finance (MSGF) students, we were delighted to host Mr. Jackie B. Surtani, Regional Director and Head of the Asian Development Bank (ADB)’s Singapore office. ADB, a key international development bank, plays a critical role in reducing poverty and driving sustainable development across Asia. Mr. Surtani shared his insights on the crucial role the private sector plays in mobilizing capital, driving innovation, and supporting economic growth in the region. Key topics from the seminar included: - Infrastructure Development: The financing gap between the region’s infrastructure needs and current investment levels. - Energy Transition: ADB's evolving stance on renewable energy, including solar, wind, and geothermal power, while navigating the complexities of the energy trilemma: energy sustainability, security, and affordability. - Blended Finance: ADB’s approach to bridging funding gaps through blended finance principles. During the Q&A, Mr. Surtani addressed several key questions from the audience. One of the standout discussions was about structuring deals for ADB’s investments. He clarified that ADB takes all aspects of sustainability into consideration, including economic, environmental, and social dimensions. He also highlighted the role of blended finance in closing the "marginally unbankable gaps." The talk concluded with a rich dialogue between Mr. Surtani and our MSGF students on how ADB is navigating the challenges of sustainable development in the region. #SGFIN #ADB #SustainableFinance #BlendedFinance #EnergyTransition #PrivateSectorDevelopment #Infrastructure Sumit Agarwal Johan Sulaeman Zhang Weina (Post contributed by Saranraj Rajindran, Research Associate at NUS SGFIN)

We were pleased to welcome Assistant Professor Emirhan İlhan from NUS Business School on Wednesday as the speaker of our Research Seminar for the students of the MSc in Sustainable and Green Finance programme.   Dr Emirhan first provided an overview of climate finance in addressing global warming. The field focuses on the reduction of externalities generated by greenhouse gas (GHG) emissions. This effort requires the coordination of governments, corporations, and households to shift to a low-carbon economy and build resilience against climate change. Due to the field being highly interdisciplinary and tied closely to other sub-fields of finance and economics, he encouraged the students to develop critical thinking when approaching it.   His talk touched upon the latest academic research and trends in climate finance. The topics he discussed included the linkage between the transition to net-zero and asset prices, physical risks and their adaptation and insurance, as well as investments in energy and carbon reduction. One of the interesting questions in the field circled whether investors care about climate risks. As shareholders of many firms and assets around the world, investors should care about climate risks and play a key role in driving climate-related investments. Studies on the behavior of institutional investors suggested that many anticipated the global temperature to rise above 2°C and were concerned about the impacts of climate risks on their assets’ value. This concern implied that firms with high GHG emissions would face higher financing costs, otherwise known as carbon premiums. However, evidence on carbon premium was mixed, with some research even finding no premium on the price of assets and portfolios.   He further discussed the implications of these studies on the issue of greenwashing, the effectiveness of strategies for net-zero transitions, and the physical risks of climate change. He concluded his talk by highlighting the urgent need for climate adaptation and mitigation measures, especially in the form of climate insurance, government interventions, and home improvements.   We warmly thank Dr Emirhan for his insights into #ClimateFinance and lively interaction with our MSc students.   Sumit Agarwal Zhang Weina Johan Sulaeman   (post contributed by Jefferson -, Research Associate at NUS SGFIN)

We had an exciting event on Wednesday at the i4.0 Seminar Room to introduce and discuss Sustainable and Green Finance Institute (SGFIN)’s new whitepaper, “𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗲𝗱 𝗜𝗺𝗽𝗮𝗰𝘁 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸 𝗳𝗼𝗿 𝗚𝗿𝗲𝗲𝗻 𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴𝘀,” with esteemed panelists and guests from both the industry and academia.   In the first half of the event, Prof. Zhang Weina provided an introduction and overview of the paper, highlighting the key features of the framework. She emphasized two main points: first, the framework offers a holistic analytical approach compared to existing frameworks. SGFIN’s new green building framework incorporates 13 existing building standards and frameworks, thoroughly covering the key impact value drivers of a building. Second, she stressed that the new financing valuation methodology, IROI (Integrated Return on Investment), integrates economic, environmental, social, and governance (EESG) aspects, enabling a more systematic assessment of financial value by considering sustainability compared to the conventional ROI approach.   During the panel discussion and Q&A sessions, we had the opportunity to explore the value of the new framework in greater depth. For this insightful session, Prof. Nirmal Kishnani (NUS Department of Architecture), and Executive Director Benjamin Towell (Sustainability Office, OCBC) joined Prof. Weina as panelists, with Prof. Cristian Badarinza (NUS Business School) moderating the panel. They discussed the current and future significance of the framework. Among the various questions raised, the panelists unanimously agreed on the importance of policy changes and the growing social recognition of sustainability by the public and consumers. They emphasized that the framework’s holistic approach to valuing and monetizing the integrated impacts of green buildings is most effective when these values are prioritized in decision-making.   The SGFIN whitepaper, which is the result of more than two years of work by SGFIN, can be accessed on our website at https://lnkd.in/gkAgVXCr . We extend our heartfelt appreciation to all the guests, panelists, and collaborators who supported the development and launch of this new framework. We look forward to seeing the wide adoption of the framework in the valuation of green buildings. (Post contributed by Dr. Seonghoon Kim, Research Fellow at NUS SGFIN) Sumit Agarwal Johan Sulaeman Jefferson - Aaron Mueller Chelsea Chunyu Y. Fanny Xueqi Or

Thank you to NUS Environmental Research Institute (NERI) for organizing this very ambitious Symposium, highlighting the efforts by NUS researchers, collaborators, and partners in leading and contributing to the global initiatives to develop a more sustainable economy. I really appreciate the insights shared by all the speakers and panelists, including Prof. Teck Seng Low, Assoc Prof. Sanjay Swarup, and Prof. Lian Pin Koh. Thank you also for the opportunity to share what Sustainable and Green Finance Institute (SGFIN) is doing as part of this initiative. Some links to share from my talk: 1. Corporate Carbon Footprint Assessment -- https://lnkd.in/gbHKwrVQ 2. ESG Data Primer: https://lnkd.in/gh3eUpXX 3. Sustainability Data Integrity (coming soon!): https://lnkd.in/gRakdi7R

Associate Professor Zhang Weina, Deputy Director of SGFIN, spoke at the 𝗕𝗿𝗼𝘄𝗻 𝗕𝗮𝗴 𝗟𝘂𝗻𝗰𝗵 𝗧𝗮𝗹𝗸: 𝗔𝗻 𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝘁𝗼 𝘁𝗵𝗲 𝗦𝗼𝗰𝗶𝗮𝗹 𝗥𝗲𝘁𝘂𝗿𝗻 𝗼𝗻 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 𝗮𝗻𝗱 𝗜𝘁𝘀 𝗔𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝘁𝗼 𝗮 𝗛𝗲𝗮𝗹𝘁𝗵 𝗣𝗿𝗼𝗺𝗼𝘁𝗶𝗼𝗻 𝗣𝗿𝗼𝗷𝗲𝗰𝘁, organized by the National Healthcare Group. She began her presentation by explaining the SROI methodology, highlighting its effectiveness as a framework for planning and evaluating impact initiatives. She then outlined the steps involved in conducting an SROI analysis, starting with defining the scope and identifying the stakeholders. This process continues with mapping outputs and outcomes using the Theory of Change and Logic Model, followed by evidencing outcomes and establishing impacts. The final steps involve monetizing and reporting these impacts. In the second part of her presentation, Professor Zhang demonstrated the application of the SROI methodology in a health promotion project - a three-year intervention implemented by NHG to influence behaviour and social norms around healthy eating habits among students. The results showed improvements in students' knowledge and intention to adopt healthier eating, leading to positive behavioural changes. She emphasized the importance of equipping students with knowledge, skills, and a growth mindset, as well as the role of multiple stakeholders and seamless national scaling to maximize impact. During the Q&A session, the audience raised several insightful comments and questions. One attendee noted the potential for a significant multiplier effect if the project reached a tipping point, leading to behavioural changes across an entire generation. In response to a question about the effectiveness of social interventions, Professor Zhang stressed the need for a comprehensive curriculum and extended observation periods to ensure lasting impact on students. (Post contributed by Asda J. Pandiangan, Research Associate at NUS SGFIN)

In this week's Industry Sharing Series, we welcomed Ms. Addy Cheng, Managing Partner of MU Impact Investments and Founder of Climate+, to present her insights on creating social impact through sustainable finance to the Master of Science in Sustainable and Green Finance (MSc SGF) students.   Ms. Cheng emphasized the critical role of mission-driven companies that prioritize long-term sustainable goals over short-term financial profits, positioning sustainable finance as a powerful tool to support these organizations. Through providing climate finance to Climate+’s projects in nature conservation and communities engagement work, she presented how impact investments can achieve positive social and environmental outcomes while generating risk-adjusted financial returns. She introduced MU Impact Investments’ approach to sustainable investment through various vehicles, including nature-based solutions (NBS) funds, transition funds, impact funds, public-private partnerships, to achieve positive environmental and social outcomes.   To prevent greenwashing, Ms. Cheng highlighted the critical role of data collection and standardization in measuring, reporting, and verifying (MRV) impact. She expressed optimism for technological development to facilitate, for example, monitoring of biodiversity and granular field data collection.   During the Q&A session, Ms. Addy shared her personal journey in sustainable investment over more than 15 years, inspiring our students to reimagine the capitalist system and embark on impactful projects with innovations.   We thank Ms. Addy Cheng for her invaluable insights and for inspiring the next generation of students. (Post contributed by Yannis Yuan, Research Associate at NUS SGFIN) #sustainablefinance #impactinvesting #climatefinance Addy Cheng Johan Sulaeman Zhang Weina Yannis Yuan

Exciting News: Registration is now open for the next intake of the popular 𝗖𝗮𝗿𝗯𝗼𝗻 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗳𝗼𝗿 𝗘𝗻𝘁𝗲𝗿𝗽𝗿𝗶𝘀𝗲𝘀 course! Equip yourself with the skills to understand, manage and mitigate climate risk while enhancing your organization’s sustainability strategy. Delve into critical topics including • Core principles of carbon accounting • Key frameworks like the Greenhouse Gas Protocol and IFRS Sustainability Standards • Legal and regulatory requirements • Carbon footprint analysis and emission reduction strategies • Real-world case studies of successful carbon accounting Don’t miss out on this in-demand course! Visit https://lnkd.in/g5uFV-PQ to secure your spot now! Registration closes 14 Nov 2024.