Memoranda of Understanding with MOE Laboratory for National Development and Intelligence Governance and Shanghai Academy of AI for Science
SGFIN recently signed two Memoranda of Understanding (MOUs) with the MOE Laboratory for National Development and Intelligence Governance (NDIGL) at Fudan University and the Shanghai Academy of AI for Science (SAIS). These collaborations aim to explore research projects on sustainable finance, AI, and big data, as well as to develop interdisciplinary educational programs that integrate AI with sustainable finance, enhancing the quality and consistency of sustainability data in the Asian context. The signing ceremony was accompanied by a workshop where both NUS and Fudan University researchers presented their research on these critical topics. These partnerships mark a significant step forward in advancing sustainable finance through data-driven, evidence-based, interdisciplinary research.
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Launch of Integrated Impact Valuation Framework for Green Buildings
On 18 Sep 2024, SGFIN unveiled its whitepaper, “Integrated Impact Valuation Framework for Green Buildings,” at an event featuring industry and academic leaders. Prof Zhang Weina provided a comprehensive overview, highlighting the whitepaper’s holistic framework which integrates 13 established building standards and utilization of the IROI (Integrated Return on Investment) methodology, which evaluates economic, environmental, social, and governance (EESG) factors alongside traditional financial metrics. The panel discussion that followed further underscored the critical role of policy changes and societal recognition of sustainability in maximizing the framework’s potential impact.
NUS Environmental Research Institute | Symposium on Innovative Environmental Solutions for Accelerating the Low-Carbon Transition
On 17 Sep 2024, the NUS Environmental Research Institute (NERI) hosted the hybrid Symposium on Innovative Environmental Solutions for Accelerating the Low-Carbon Transition, as part of NUS Sustainability CONNECT Highlight. The event featured key innovations from NUS researchers and partners and emphasized the importance of collaboration in turning innovative ideas into scalable solutions for a sustainable future. Prof Johan Sulaeman, Director of SGFIN, presented SGFIN’s contributions, namely the Corporate Carbon Footprint Assessment, ESG Data Primer and Sustainability Data Integrity projects. Notably, he had addressed similar topics at the Lee Kuan Yew School of Public Policy Festival of Ideas 2024
National Healthcare Group | Brown Bag Lunch Talk: An Introduction to the Social Return on Investments and Its Application to a Health Promotion Project
On 12 Sep 2024, Prof Zhang Weina delivered a presentation at 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. During the session, Prof Weina explained the SROI methodology, outlined the steps for conducting an SROI analysis, and demonstrated its application in an NHG health promotion project aimed at improving the eating habits of students. To maximize impact, Prof Weina emphasized the critical need for students to be equipped with the necessary knowledge, skills, and mindset, alongside effective national scaling efforts and collaborative action from multiple stakeholders.
IVAS-IVSC Business Valuation Conference 2024 | Intangible Impact: Unlocking Business Value in the New Economy
At the IVAS-IVSC Business Valuation Conference 2024, SGFIN Director Prof Johan Sulaeman spoke on the theme “Intangible Impact: Unlocking Business Value in the New Economy” and discussed the critical role of corporate sustainability as an intangible asset in driving business value. While other speakers emphasized intangible assets like R&D and branding, Prof Johan focused on sustainability, particularly the inconsistencies arising from the lack of a universal reporting standard. He highlighted that although environmental metrics such as GHG emissions are frequently reported, social data’s impact on enterprise value remains difficult to quantify. He introduced SGFIN’s AI-driven equity valuation model, which links corporate valuation to environmental metrics, demonstrating that higher GHG emissions negatively impact stock market valuations, pricing each ton of CO2e emissions at around US$60-80.
Integration of Executive Pay with ESG
In a Business Times article discussing the integration of executive pay with ESG criteria, Dr Sean Shin shared his insights on the challenges companies face in implementing ESG-linked compensation and offered some advice on how to address these obstacles.
Links: Business Times Online | Business Times (Print Version)
Tsinghua University & CGS International Visit
SGFIN recently hosted a session for Tsinghua University students, led by Prof Liu Qing. Prof Zhang Weina provided an overview of Sustainable Finance and highlighted SGFIN’s initiatives in research and education while Faith Yong, Head of Admissions for MSc programs at NUS Business School, presented the diverse range of MSc offerings available. A highlight of the event was the MSc SGF-CGS International capstone project on renewable energy supply from ASEAN countries, supervised by Dr David Broadstock, who also gave a presentation on the project. Indeed, the enthusiastic participation by the Tsinghua University students reflected their eagerness to delve deeper into sustainable finance.
Braxton Partners Series Luncheon | Making an Impact: Accelerating Growth in Southeast Asia
On 25 Jul 2024, Prof Zhang Weina participated in the Braxton Partners Series Luncheon and joined in the discussion on the topic: “Making an Impact: Accelerating Growth in Southeast Asia.” Several speakers shared their stories and views. Prof Weina, in particular, shared valuable insights on internalizing externalities in sustainable investing.
SGFIN Research Collaboration with ACRA on Singapore Climate-related Disclosures
On 8 Jul 2024, findings from the joint SGFIN-ACRA study on climate disclosures by 51 larger listed companies were released. Some key insights include:
- While there are still improvements to be made, large Singapore companies are making good progress in climate reporting. “Good progress” can be defined as companies disclosing key TCFD elements – Governance, Strategy, Risk Management, and Metrics and Targets. This is an important step towards higher standards, placing them in a good position to report using the ISSB standards eventually.
- A comprehensive understanding and complete disclosure of climate risks’ magnitude and relative significance are crucial. This allows for more informed investment decisions, enhances transparency, builds trust with stakeholders, and enables companies to prioritize their risk management efforts effectively.
- Disclosing interim milestones and pathways is vital for tracking progress towards net-zero goals. It helps break down the task of achieving net zero into smaller and more actionable steps, reduces the likelihood of greenwashing, and demonstrates genuine commitment.
- Three key factors are essential for effective climate reporting: People, Data, and Experience. We need people with the necessary knowledge and skills to manage and use climate data effectively; reliable data is crucial for accurately measuring carbon emissions; and experience is vital, making it imperative for companies, especially SMEs, to start their climate reporting efforts early.
Links: ACRA | Straits Times Online | Business Times Online | Zaobao Online | CNA News (TV)
