Sustainable Finance
Integrated Advisory and Support
With its expertise spanning both the sustainability and finance sectors, CFA is able to offer a unique and bespoke service as a Sustainable Finance Integrated Advisor. We are committed to support, promote and assist in the development of sustainable finance in the region, whether this involves green, social and sustainability bonds and loans, financial institutions, equities, or assisting project owners to develop investor-facing standards for green and sustainable projects.
Solutions for Issuers
Sustainable Finance Framework
We help issuers to
- formulate a selection process with evaluation criteria for green and social projects
- establish management and control mechanisms for proceeds based on international standards
- evaluate potential environmental and social benefits
- conduct periodic reviews and compile performance reports
External Review
We help issuers to
- evaluate their green/social/sustainability Financing Framework
- verify their project against a designated set of criteria e.g. Climate Bonds Initiative standards
- conduct annual compliance reviews to ensure alignment with the green/social/sustainability Financing Framework
- conduct an external review of project impacts
Verification
As an Approved Verifier of the London-based Climate Bonds Initiative (CBI) under its Climate Bonds Standard & Certification Scheme, CFA is qualified to provide climate bond verification services throughout Asia and in the sectors of solar energy, wind energy, geothermal energy, low carbon buildings and water infrastructure. Our verification provides assessment of the eligibility and readiness of related projects at the pre-issuance stage, as well as assurance of the actual use of proceeds and internal systems and controls at the post-issuance stage.
Solutions for Investors
Sustainable Investment Advisory
Sustainable finance is driven by investors, lenders and insurers who understand the financial advantages, market opportunities and reduced risks from climate-aware projects. Whether the investing is focused on equities, fixed income or specific projects, CFA can provide financial institutions with sustainable investment advisory in the Asian region to:
- develop investment strategies
- construct investment universes
- conduct portfolio analysis
- assess impacts and risk
Impact Reporting
CFA is among the few organizations in the sustainable finance arena who have developed criteria to evaluate potential green and social investments against the full range of ESG issues set out in the United Nations Sustainable Development Goals (SDGs). This helps to ensure green and social projects operate in a way which does not run counter to any of the SDG targets. We can assess whether the projects make a positive contribution to the environment, human development, good governance and equitable growth in line with the commitments made by national governments to the UN goals.
Featured Reports
Development of Green Bonds in Asia: Climate Contributions and Stakeholder Dynamics
The 2015 Paris Climate Agreement lays a solid foundation for mobilising the capital market for climate mitigation and adaptation actions. This can include a wide variety of funding sources, instruments and channels. Green bonds, as debt securities that finance or refinance environmental projects, have been growing rapidly and are recognised as one of the primary […]
Making Green Bonds Work: Social and Environmental Benefits at Community Level
Green bonds are seen as an important tool to shift money flows to environmentally friendly projects, and to achieve the carbon reduction targets under the Paris Climate Agreement. This Oxfam Hong Kong research report prepared by CCA aims to answer two questions increasingly asked by sustainability-conscious investors and civil society organisations amidst an exponential growth […]
Finding Gold in All That Glitters – Exploring Sustainability Bonds in Asia Pacific Region
Green, social, and sustainability bonds in the Asia-Pacific market jointly reached USD 187 billion in 2019 and are expected to grow further. For sustainability-conscious international investors, there are two key challenges: the misalignment of expectation and standard-setting, and the expectation gap between the issuers’ use of proceeds and the quantifiable sustainability benefits achieved. In this […]