| | APRIL 20248IN FOCUSIN FOCUSFULLERTON & UNDP UNVEIL NEW FRAMEWORK FOR PRIVATE EQUITY CLIMATE INVESTMENTSSINGAPORE & AUSTRALIA INVEST $27 MILLION TO CUT MARITIME EMISSIONSFullerton Fund Management (Fullerton) has joined forces with the United Nations Development Programme (UNDP) to craft a Sustainability Management Framework aimed at steering private equity climate investments across Asia. Leveraging UNDP's SDG Impact Standards as its cornerstone, the framework serves as a guiding tool for private equity firms, offering a structured pathway towards achieving their net zero objectives.In Asia, the rationale for climate investments, both environmentally and commercially, stands strong, with the projected market for green enterprises anticipated to exceed $4 trillion by 2030. Governments have demonstrated robust pledges to transition their economies towards decarbonization, with an estimated investment of approximately $53.5 trillion between 2020 and 2060 needed to fulfill existing net-zero commitments. This underscores significant forthcoming investment prospects, where private equity, in tandem with public expenditure, holds the potential to fill crucial funding disparities.Private equity investors are well-positioned to exert greater influence on portfolio companies over climate and sustainability issues. However, disclosure standards in the region are uneven and corporate disclosures remain lacking, particularly in emerging Asia. This poses challenges for climate investors who are looking to assess the material environmental issues and their implications for their investments.The Sustainability Management Framework provides private equity investors with direction on incorporating sustainability factors and Sustainable Development Goals (SDGs) into their strategy, management, transparency, and governance protocols to advance their decarbonization objectives. This framework empowers climate investors to meticulously assess diverse investment practices and select the tailored set that most aptly aligns with their investment mandates and stakeholder expectations."As an investor of private capital in Asia, we recognize that sustainability issues have considerable implications for a company's investment value, particularly for private equity, which has a long investment horizon. With the launch of this Sustainability Management Framework with support from the UNDP, we are committed to integrating sustainability considerations in our private equity climate investments. More importantly, we hope to share this framework and insights from real-world case studies with our peers to enable them to evaluate the relevant sustainability aspects required to optimize decarbonization in the region", said Huck Khim Tan, Deputy Chief Investment Officer and Head of Alternatives at Fullerton Fund Management. Singapore and Australia have joined forces for a $27.29 million ($20 million) endeavor designed to expedite the decarbonization of their respective maritime industries. Named the Australia-Singapore Initiative on Low Emissions Technologies (ASLET) for maritime and port operations, this initiative will be carried out by CSIRO, Australia's national science agency, in collaboration with the Maritime and Port Authority of Singapore (MPA).ASLET "intends to support the outcomes of the Singapore and Australia Green and Digital Shipping Corridor (GDSC), which will help decarbonize and digitize shipping routes between Singapore and Australia", the countries said in a joint statement.The program's objectives include the development of innovative solutions and the enhancement of adoption rates for zero or near-zero greenhouse gas emission technologies. Additionally, it will explore opportunities for collaboration between Australia and Singapore in green shipping and port infrastructure projects.Moreover, the initiative will streamline the exploration, experimentation, and commercialization of technologies, fuels, and energy sources with zero or minimal greenhouse gas emissions for application in maritime shipping and port activities, according to the announcement. While both nations will contribute equally to the project's funding, it is anticipated to also attract co-funding from industry stakeholders.The inaugural meeting of the ASLET steering committee is scheduled for April 19 during the Singapore Maritime Week. Its primary objectives are to set strategic direction and assess proposals for low-emission technology projects in maritime and port operations. The committee intends to initiate a grant call to identify projects aligning with the designated focus areas.
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