Climate Transition Financing for Companies in Asia
“Green finance alone is not enough. The world, and Asia in particular, need transition finance,” quoted Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS).
When companies have strong intent to decarbonize but are constrained by lack of relevant knowledge and financial resources, climate transition finance can assist these companies to adapt to the low carbon economy.
Climate transition financing grants companies financial resources to reduce the environmental impact of their business and create long-term sustainable change. Transitional financing is still nascent in Asia, as stated by Mr Ravi, “the industry needs to do better in transitional finance – to provide the funding support for companies that are not so green, to become greener.”
Global investors are increasingly prioritizing green investments in their portfolios. For companies in Asia that have yet to become green, it is important to provide transparent and quality data, accurate and verifiable carbon disclosure and climate key performance indicators (KPIs) to convince green investors to finance their businesses. A credible greenhouse gas (GHG) emissions inventory to use as a baseline is necessary for any company to begin its decarbonization journey.
As stated by Yulanda Chung, Head of Sustainability, Institutional Banking Group at Development Bank of Singapore Limited (DBS), "We need good greenhouse gas data from our customers. We are effectively rewarding companies to start reporting their climate strategy, mitigation and adaptation plans.”
Pantas has partnered with a financial institution to create a one-of-a-kind climate fintech solution for companies to measure, manage and disclose their carbon emissions and access climate transition financing. On August 3, 2022, Pantas and its banking partner offered a multi-million US$ climate transition financing, the first in Southeast Asia, to a company that plans to decarbonize over time.
Schedule a demo if you are interested in starting your decarbonization journey and accessing climate transition financing.
We also offer free diagnostics and analysis to determine the accuracy of your company’s existing climate reporting.