After having spent in Singapore our first week of our activity, for our very first contract, we can tell that Singapore is certainly not a random destination when it comes to Sustainable Finance.
The City-State is indeed the 5th market in this domain in Asia (excl. Japan), with a share of 11%, after Malaysia, Hong-Kong, South-Korea, and China. The Fintech landscape is also very active, with a strong commitment of the Regulator to develop this domain—and, in effect, Singapore Fintech Festival SFF x SWITCH, is starting today for 5 days of financial innovation (11-15 Nov.).
Furthermore, the whole Asia Pacific region has become the world’s growth pole, with 40% of the global GDP in 2018—but is also contributing to 48% of the world’s total CO2 emissions, and is exceptionally exposed to climate change impacts: sea level rise, extreme weather, high temperatures, etc.
In this context, it is thus really worth noticing that Asia’s share (excl. Japan) only accounted for 0.2% of the global sustainably managed assets in 2016 (ie. USD 52bn vs. USD 23tn), i.e. for 0.8% of the Asian assets (excl. Japan), with a predominance of Sharia funds, representing a third.
Asia is thus a region with both serious ESG challenges, and with an incredible potential for transformation—and we, at IMPACTIN, hope to be contributing on it in the coming months!
— The IMPACTIN team