Celebrating the Winners of this year ' s Annual Business Awards
This year ' s outstanding achievers were announced in a virtual ceremony hosted by Sharanjit Leyl on 4 October . H . E . Kara Owen CMG CVO presented the audience-voted award for UK Impact in Singapore and we heard from Singapore Paralympic Swimmer Toh Wei Soong & Singapore Paralympic Archer Nur Syahidah Alim in a special interview . Thank you to all those who entered and our partners .
THE WINNERS
SPECIAL FEATURE: SUSTAINABILITY
49
51
RESPONDING POSITIVELY TO INCREASING DEMANDS FOR SUSTAINABLE INVESTMENT
Responding Positively to
Increasing Demands for
Sustainable Investment
Sustainable finance has been on a journey of evolution both
in Asia and across the globe and, in recent times, a series of
factors are combining to fuel faster growth.
Informed by the UN’s Sustainable Development Goals (SDGs),
focus has grown increasingly over a number of years on how
re-wiring the financial system can help accelerate solu-
tions to global issues, not only biodiversity loss and climate
change, but other complex problems such as inequality and
poverty. This shift in thinking is noticeable in the statistics.
For instance, between 2016 and 2018 the value of sustain-
able investment assets managed globally grew 34% to more
than US$30 trillion. (Global Sustainable Investment Alliance’s
Review 2018)
During the last 18 months, the momentum has been further
stepped up as a result of both the increasing visible evidence
of climate change and especially by the pandemic; a factor
which has given governments the difficult task of rebuilding
economies while limiting further damage to the planet’s eco-
system. In terms of climate change, the COP26 conference
in November may prove to be a pivotal event in tackling the
problem.
Mainstream
The impact of all these developments is to bring sustainable
finance further into the spotlight and move it increasingly
into mainstream public consciousness.
In relation to sustainability, commentators have suggested
COVID-19 has sharpened the focus on environmental, social
and governance (ESG) criteria and practice within financial
services, embedding sustainable finance as a strategic prior-
ity, and adding greater sophistication in an area where there
is still plenty of scope for progress in terms of weighting
across the E, S and G strands, as well as better measurement
and evaluation.
Supported by improvements in ESG standards, greener
investments are becoming an increasing priority as the
industry responds to investor demand for portfolios and
investments that make a positive impact.
There is plenty of evidence for this acceleration in ESG
investing. According to recent research from Deutchse Bank
and GSIA, ESG assets are forecast to exceed US$100 trillion
by 2028* and US$150 trillion by 2034, and already one in ev-
ery three US dollars currently invested takes account of ESG
factors (Forum for Sustainable and Responsible Investment
(2020)). Meanwhile, another encouraging statistic has been
revealed in analysis from S&P Global markets intelligence,
which found that during the pandemic, ESG funds were
found to have achieved gains of up to 20.1%, outperforming
traditional funds.
Asian markets are showing intent also. Studiesshow that
the Asian wealth management community, especially the
next generation (NextGen), have embraced the move in that
direction. In research Jersey Finance conducted last year
in association with the Asian financial publisher Hubbis,
entitled ‘The Evolution of Wealth Management in the World
of Islamic Finance - Views from the Islamic Finance Wealth
Management Community’, 69% of respondents indicated
that between a quarter and three quarters of the NextGen
financial investment portfolios will be centred on ethical,
impactful or ESG investments. While within the funds sector,
asset managers are increasingly reviewing their products,
domiciles and fund administration solutions in line with the
critical success factors demanded by sustainable investing.
Maria McDermott
Business Development,
Asia, Jersey Finance
Cities’ initiative and is pursuing a carbon-neutral strategy.
We have responded also as an industry and implemented a
new ten-year strategy with the ultimate objective of being
recognised by clients, key stakeholders and other partners
as the leading sustainable IFC in the markets we serve.
Collaboration
The intention going forward is to build partnerships with
stakeholders, to integrate sustainability across sectors, to
enhance collaboration, implement independent performance
measurements and to make investment in the depth of skills
needed even more of a priority to help in meeting changing
investor strategies. Collaboration with government, regulator
and other parties will be vital in meeting our ambitions.
For example, as ESG priorities accelerate, investors will have
mounting concerns about the dangers of green washing
and will want reassurance about how their investments are
deployed. Jersey service providers, working with the digital
industry, are developing the measurement and analysis tools
necessary which will provide investors with the confidence
they seek.
To further support this new strategic approach, Jersey’s fi-
nancial regulator, the Jersey Financial Services Commission,
recently made changes to a number of its Codes of Practice,
with the aim to counteract the potential for greenwashing
by supporting sustainable finance through a commercially
viable disclosure regime.
New landscape
The landscape for financial services has been re-shaped in
this new post-COVID era and there is no turning back. The
same is true within Asian economies as it is for those in the
West. IFCs, which have often been the preferred location for
cross-border investment solutions, will need to be nimble if
they are going to meet the challenge. They will need the right
frameworks that are committed to the cause of sustainable
investments, complemented by the new supporting tools and
evaluation services. If they respond accordingly, while also
maintaining robust yet flexible regulatory regimes that meet
the global standards expected, they can play an important
role in channeling funds where they will make a positive
difference.
International finance centres ABOUT THE AUTHOR ABOUT THE COMPANY
International finance centres (IFCs) have a vital role to play
in meeting these new objectives, including within Asian
markets, provided they respond to the global shift towards
a greener, more inclusive economy and they reflect this new
ESG thinking. Maria is a fellow of the Association of Chartered Certified Ac-
countants and an associate member of the Chartered Governance
Institute. Born in Jersey, she has more than twenty years’ experience
working in the international finance industry and is experienced in
investment funds, private wealth, compliance, risk management and
project management. Based in Asia for the last ten years, having
transferred from Ogier Fiduciary Services Jersey to develop their
fiduciary services business in Hong Kong, Maria has also worked for
various listed entities and financial service providers in Singapore
and Shanghai, where she is now based full time. Jersey Finance is proud to work with key partners to represent and
promote Jersey, a forward-thinking international finance centre.
We champion the competitive position of Jersey's finance industry,
both locally and internationally, supporting the highest regulatory
standards and the most attractive products and services to suit the
needs of global investors. We have a global presence with offices in
Jersey, Dubai, Hong Kong and New York; representation in London
and Johannesburg; and virtual offices in Shanghai and Mumbai. For
more information visit www.jerseyfinance.je.
By way of example, Jersey, one of the long established IFCs
and one with strong links with Asian investors, has rec-
ognised the importance of embedding sustainability into
its approach for some time. At a government level, it has
taken part in the United Nations ‘United 4 Smart Sustainable
SPECIAL FEATURE: SUSTAINABILITY
RESPONDING POSITIVELY TO INCREASING DEMANDS FOR SUSTAINABLE INVESTMENT