Standard Chartered’s Marisa Drew said there is a need for a ‘plan B’ to ensure sustainable development, noting that growing uncertainty in the macro environment is in fact driving demand for green finance.
Despite growing uncertainty in the macro environment – high inflation, rising interest rates and war in Ukraine – global capital flows toward green opportunities still continue at pace, according to Standard Chartered chief sustainability officer Marisa Drew.
In fact, there is actually a greater need for sustainability in certain cases, such as the emerging issue of energy security.
«We need a plan B which is the green solution […] because we were wholly reliant on one system,» Drew said during a recent SC Ventures’ media roundtable attended by finews.asia.
«The green economy, sustainability is arguably the biggest theme,» Alex Manson, member of SC Ventures added.
Asian Lag
Although there is growing interest in sustainable finance globally, across institutional investors, sovereign wealth funds and private investors, Asia remains a laggard.
Nonetheless, Drew notes that there is growing interest amongst wealthy families in the region that are starting to take a look at green and sustainability-related investments.
Adaptation Economy
Moreover, Standard Chartered underlines an urgent need not only for funding the mitigation of climate change but also adapting to an environment of «increasingly frequent and severe weather events and other climate change effects», according to a report by the bank titled «The Adaptation Economy».
The report examined 10 developing markets – Bangladesh, China, Egypt, India, Indonesia, Kenya, Nigeria, Pakistan, the UAE and Vietnam – and found that they could face an estimated loss of $377 billion in damages and lost economic growth by 2030. A minimum estimated investment of at least $317.4 billion is required between now and 2040, rising to $1.4 trillion between now and 2050.
«There's an urgency [and] there's a return on that investment,» Drew added. «It is almost inevitable that value will be created.»
