Latest news with #ESG-labelled
Malaysian Reserve
23-07-2025
- Business
- Malaysian Reserve
CGS International Accelerates Sustainability Efforts and Unveils Second Sustainability Report
The Group received 17 Sustainability-related awards in 2024, spanning CSR, DEI and ESG categories. Notable progress was made on its eight Sustainability Focus ('8SF') areas, including the launch of its ESG Incorporation Framework ('ESGIF') to guide the development of ESG-labelled products and services. Starting 2025, the Group will focus on further ESG incorporation into its products and services, tracking Scope 3 emissions, and integrating climate risk into its risk management framework. SINGAPORE, July 23, 2025 /PRNewswire/ — CGS International Securities Pte Ltd ('CGS International') has published the second edition of its sustainability report, reaffirming its commitment to sustainable practices in its business and operations. The 2024 Sustainability Report is aligned with globally recognised sustainability reporting standards, Global Reporting Initiative ('GRI'), as well as the International Financial Reporting Standards S2 on climate-related disclosures. 'CGS International remains committed to future-proofing our business by embedding sustainability in our strategy. We are focused on creating long-term value for our stakeholders and giving back to the communities we serve. At the same time, we continue to facilitate capital flows between China and ASEAN, some of which could be channeled to sustainable development areas that address climate and biodiversity risks in the ASEAN region,' said Ms Carol Fong, Group CEO of CGS International. Promoting Bilateral Relations and Mutual Growth In an increasingly fragmented and volatile global economy, it is important for Asian countries to forge closer regional cooperation to increase collective influence and trade resilience. The Group strengthened its role as a China-ASEAN nexus, facilitating not only capital flows, but also bilateral relations. In 2024, several high-impact conferences were organised across Southeast Asia and China, including the CGS SEA Bilateral Investment Forum 2024 in Hainan, which brought over 300 business leaders from China and ASEAN together. The Group also fostered closer relations between China and Malaysia, including a letter of intent between the governments of Hangzhou and Kuala Lumpur, and hosting high-level delegates to deepen bilateral cooperation. A notable initiative within the Group was the launch of a secondment programme between CGS International and its parent company, China Galaxy Securities, with the aim to facilitate cross-cultural exchanges and strengthen intra-group ties. Deepening ESG Integration Across the Group The 2024 report highlights meaningful progress across the Group's 8SF areas and marks a milestone in its Vision 2025 Strategy and Business Plan, the five-year roadmap that places sustainability at the heart of its strategic direction: Made material progress in emissions tracking, where Scope 2 emissions tracking was extended to international offices. Developing reduction targets and plans for Scope 1 and 2 for Malaysia, Indonesia, Singapore and Thailand offices in 2025 and 2026. Laid the groundwork with the continued measurement of Scope 3 emissions Category 1 (Purchased Goods and Services) from previous years Embarking on other Scope 3 categories covering business travel and finance-related activities in future years. In 2024, CGS International advanced its 'Sustainable Finance' focus by introducing the ESGIF, developed and endorsed by the Group's Sustainability Committee. This framework aims to provide direction and harmonisation for the development of ESG products and services. It establishes clear mechanisms for measurement, tracking, and reporting to support strategic decision-making. Furthermore, CGS International's Malaysia office launched ESG Margin Financing to promote investment in companies with strong ESG performance. Customers investing in constituents of the FTSE4Good Bursa Malaysia Index with high ESG ratings received preferential financing rates, with total loans extended reaching RM4.88 million. The Group's presence in Shariah-compliant markets across ASEAN also drove over S$6 million in revenue from faith-based products. Fostering Collaborative Impact 'At CGS International, we believe that knowledge sharing and collaboration are essential to driving meaningful progress on critical sustainability issues. By working closely with our partners and stakeholders, we aim to create a stronger collective catalyst for sustainable finance across Southeast Asia, and mobilise the industry towards greater climate action across ASEAN,' said Mr Kevin Lee, Group Head of Sustainability. One such initiative is the ASEAN Institute of Carbon Neutrality ('AICN'), launched in late 2023. AICN aspires to mobilise capital towards sustainable development in the ASEAN region to address issues such as climate change. This is done through education and engagement with the business community on sustainability issues through knowledge sharing and thought leadership. The AICN has collaborated with the Sustainable and Green Finance Institute ('SGFIN') from the National University of Singapore since 2024, which resulted in two white papers published on the topics, Just Energy Transition Partnership in Indonesia and Renewable Energy Imports for Singapore. AICN also hosted two webinars on related topics in 2024, including one on nature-related risks for corporates. In the pipeline are three joint research reports with SGFIN in 2025. For more details about CGS International's sustainability initiatives: – END – About CGS International Securities CGS International Securities Pte. Ltd. ('CGS International') is an award-winning and market leading integrated financial services provider, ranked among the top securities houses in Asia. CGS International taps on our wealth of global and ASEAN insights to offer equities trading, leveraged products, wealth management, investment banking, equities research, Shariah-compliant financing, fixed income, currency and commodities, structured products and prime brokerage services in over 15 countries and regions. Along with its parent organisation China Galaxy Securities, a leading securities house in China, CGS International is trusted by close to 18 million customers globally. Find out more at
Business Times
20-07-2025
- Business
- Business Times
Caution, greenwashing concerns slow South-east Asia's sustainable finance in Q1 2025
[SINGAPORE] Proceeds from environmental, social and governance (ESG)-labelled debt instruments in South-east Asia fell sharply in the first quarter of 2025, as companies and investors grew more cautious amid geopolitical tensions, economic uncertainty and rising scrutiny over greenwashing risks. According to financial data provided by LSEG, ESG bond proceeds fell 15 per cent year on year to US$4.6 billion in the three months from January to March, while ESG loans dropped by a steeper 23.4 per cent to US$10.2 billion. Sustainable finance analysts said corporates and investors might have been more cautious amid current geopolitical and economic uncertainties, with the global pullback on climate action spurred by the US. However, they noted that US President Donald Trump's climate policies may not be the decline's only key driver. 'Increased global scrutiny and debate over ESG in certain markets may be contributing to a more cautious approach among both issuers and investors, although the direct impact on Asean is challenging to directly correlate and quantify,' said Melissa Cheok, associate director at Sustainable Fitch. A maturation within Asean's sustainable finance markets, as well as corporates becoming more aware of greenwashing risks, are other factors as well. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up ESG bonds The decline in ESG bond proceeds in South-east Asia outpaced the global market, which saw ESG bond proceeds come in at US$234.6 billion in Q1 2025, a 5.9 per cent dip from US$249.3 billion in the same period a year earlier. The Asia-Pacific region bucked the trend, with ESG bond issuances rising to US$47.2 billion, a 12.1 per cent increase from US$42.2 billion over the same period. Within South-east Asia, funding from social and sustainability bonds overtook green bonds, which usually have the highest number of issuances among ESG-labelled bonds. After accessing debt capital markets in the last few years, large corporates in the region are now focusing on deploying and managing proceeds in a way that is aligned with sustainability or climate-related themes and projects, said Cheok. In the meantime, small and medium-sized enterprises are in the early stages of adapting to newly implemented regulatory frameworks; they are also allocating internal resources to build the necessary capacity for compliance and reporting. 'Thus, an ongoing phase of capacity building remains a salient feature of the market landscape,' said Cheok. With expectations that the US central bank might cut interest rates only towards the end of the year, borrowing costs will remain high and may deter some issuers from tapping the market, particularly those with weaker credit profiles or narrower operating margins. Nevertheless, Cheok said that investor demand for ESG debt instruments remain resilient, underpinned by dedicated ESG mandates, evolving regulatory requirements, the focus on transition and the strategic importance of sustainability for both issuers and investors. The top bookrunners for ESG bond deals in South-east Asia over H1 2025 were UBS (US$642.5 million), Morgan Stanley (US$432.7 million) and Deutsche Bank (US$351.4 billion). ESG loans The fall in ESG loan proceeds in South-east Asia was tamer than in the rest of the world. Across the global market, the amount of capital raised from ESG loans fell 47.8 per cent to US$113.1 billion in Q1 2025, from US$216.6 billion in Q1 2024. As for Asia-Pacific, funds from ESG loans came to US$20.4 billion, down 35.1 per cent from US$31.5 billion a year earlier. Aaron Chow, SMBC's head of loan capital markets department in Asia-Pacific, said ESG financing's share of the total loans market has fallen substantially, given that loan issuance volumes in South and South-east Asia were up in Q1 2025 compared to the previous year. He added that companies are adopting a more measured approach towards ESG financing particularly when it comes to setting credible targets in sustainability-linked loans (SLLs), reflecting the growing scrutiny and awareness of greenwashing risks. In addition, price compression observed through 2024 and into Q1 2025 has made SLLs less attractive for lenders, as margins may be further reduced if these targets are met. SLLs are loan instruments that offer borrowers interest rate discounts if they have met pre-determined sustainability- or climate-related targets. Chow added that corporates across Asia-Pacific and South-east Asia remain committed to their long-term ESG goals, although the levels of ambition would vary by market and sector. They are driven by domestic regulatory pressures, stakeholder expectations, and the pursuit of energy security and sustainable development. He expects ESG loan activity in the region to remain robust over the rest of the year, particularly in the areas of energy efficiency, water and social finance. SMBC was the top arranger for ESG loans in South-east Asia across the first three months of 2025, with US$866.7 million raised. Bank of China and ICBC tied for second place, at US$723.4 million each.
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Business Standard
15-07-2025
- Business
- Business Standard
AIFs must lead ESG push in unlisted firms, says Sebi's Ruchi Chojer
Sebi executive director says AIFs must align with global ESG norms as 40 per cent of capital comes from foreign investors expecting high disclosure standards BS Reporter Mumbai Alternate investment funds (AIFs) must play a key role in driving environmental, social, and governance (ESG) adoption among unlisted investee companies, said Ruchi Chojer, Executive Director at the Securities and Exchange Board of India (Sebi). Chojer was speaking at a fireside chat organised by the Indian Venture and Alternate Capital Association (IVCA) as part of its Renewable Energy Summit 2025. She said 40 per cent of AIF capital comes from foreign investors who expect alignment with global disclosure standards and added that the regulator is open to proposals for ESG-labelled AIF categories. 'India will need an estimated $250 billion by 2030 to finance renewable energy, storage, and transmission. Sebi remains committed to enabling this transformation by providing regulatory clarity, reducing policy risk, and supporting innovative investment structures. Our goal is to ensure that India's capital markets continue to serve not just as engines of growth but also as platforms for building a sustainable, future-ready economy,' Chojer said. Underlining Sebi's efforts, she noted that the Business Responsibility and Sustainability Reporting (BRSR) framework has elevated ESG disclosures in India to the level of financial reporting—making them assured, consistent, and decision-useful. First Published: Jul 15 2025 | 6:35 PM IST
Mint
15-07-2025
- Business
- Mint
Retail participation in capital mkt increases; demat accounts surge to 19.4-cr in 2025
Mumbai, The Indian market is witnessing remarkable participation from retail investors, with a surge in demat accounts to 19.4 crore in 2025 from 3.6 crore in 2019, a senior Sebi official said on Tuesday. Meanwhile, domestic institutional ownership in listed companies has increased from 13 per cent to 20 per cent, while foreign ownership has declined from 22 per cent to 17 per cent. Speaking at an event organised by IVCA Renewable Energy Summit 2025, Ruchi Chojer, Executive Director at Sebi, said that trust is the cornerstone of investment, and India has earned that trust. "At Sebi, our regulatory approach has focused on balancing capital formation with systemic stability and investor protection. Trust is the cornerstone of investment, and India has earned that trust," she was quoted in a statement issued by IVCA. She shared that retail participation has surged from 3.6 crore demat accounts in 2019 to 19.4 crore in 2025. Highlighting the evolution of capital markets in the country, Chojer said that over the last three decades, India's capital markets have transformed into one of the world's top 10 equity ecosystems resilient, inclusive, and increasingly driven by domestic participation. In the last 10 years alone, Indian companies have raised nearly ₹ 93 lakh crore through equity and debt, with FY 2024–25 witnessing a record ₹ 4.3 lakh crore in equity issuance, including ₹ 1.7 lakh crore via IPOs. "This growth is powered not just by policy and infrastructure, but by deepening investor trust," she said. Additionally, she spoke on the importance of capital markets in India's clean energy journey. "As India undertakes its green transition, the role of capital markets and particularly alternative investment funds will be critical. Financing long-gestation sectors like grid modernisation, storage, and transmission requires patient and risk-tolerant capital. Sebi has already enabled blended finance structures, allowing philanthropic and multilateral capital to invest through junior units in AIFs. This is a vital step in unlocking capital for the energy transition," she said. Also, she stressed that India's clean energy transition cannot be driven by listed companies alone and AIFs must play a key role in driving ESG adoption among unlisted investee companies, especially as 40 per cent of AIF capital comes from foreign investors who expect alignment with global disclosure standards. "We are open to proposals for ESG-labelled AIF categories, and we believe well-structured tax incentives can further catalyse investment into sectors with long-term impact and higher risk profiles," she said. Looking to the future, she noted, "India will need an estimated USD 250 billion by 2030 to finance renewable energy, storage, and transmission. Sebi remains committed to enabling this transformation by providing regulatory clarity, reducing policy risk, and supporting innovative investment structures. Our goal is to ensure that India's capital markets continue to serve not just as engines of growth, but also as platforms for building a sustainable, future-ready economy.' This article was generated from an automated news agency feed without modifications to text.
Mint
27-06-2025
- Business
- Mint
L&T's ESG bond debut may open India's sustainable debt market—if investors stay interested
Mumbai: On 23 June, infrastructure giant Larsen & Toubro (L&T) listed India's first environmental, social & governance (ESG) bond on the National Stock Exchange under Sebi's new framework. While Indian companies have previously raised ESG debt overseas, L&T's rupee-denominated issuance is a domestic first under Sebi's guidelines. Experts believe the ₹750 million sustainability-linked bond (SLB), anchored by HSBC and offering a 6.35% coupon (competitive by market standards) suggests that investors are willing to back credible ESG-labelled issuances. But whether this debut sparks a broader trend or remains an isolated milestone hinges on a critical factor: investors' willingness to pay the 'greenium" – the difference between the yield or returns investors receive from a green bond versus a similar conventional bond. 'The primary factor will be investor interest and their willingness to offer a green or ESG premium to the bond issue compared to other fixed-income instruments," said Bose Varghese, senior director-ESG at Cyril Amarchand Mangaldas. 'Demand for rupee-denominated ESG bonds has been lukewarm because of the issuers' expectation of a 'green premium' and investors' lack of interest to offer that. But L&T has done it. We can expect more to follow", he said. Global vs local demand Globally, ESG-labelled instruments from Indian companies have seen strong demand. In 2015, Exim Bank issued a $500-million green bond, followed by Axis Bank in 2016. But in India, listed green bond issuance, including municipal bonds, stood at just ₹6,953 crore as of March 2025, according to Sebi data collated by ICRA ESG Ratings Ltd. According to data cited by Nikhil Aggarwal, CEO of investment platform Grip Invest, green bonds outperformed conventional bonds by nearly 2% in 2024. 'The positive response from institutional investors highlights strong demand, which will be critical for future issuances," said Aggarwal. R. Shankar Raman,president, whole-time director & chief financial officer (CFO) at L&T, told Mint the company aims to encourage responsible finance as a strategic pillar. 'We received interest from reputed investors and arrangers who were aligned with the ESG theme. The issuance also enabled us to secure beneficial pricing, reflecting the positive market sentiment toward credible sustainability-linked offerings," he said. Data from Prime Database showed thatIndia's green bond market saw 27 issues totalling ₹8,743 crore between FY21 and FY25. The highest was in FY22, when ₹2,677 crore was raised across 10 issues. Only two issues, worth ₹700 crore, have been recorded so far in FY26. Sebi's ESG bond framework Sebi's 5 June circular introduced a framework covering green, social, sustainability, and sustainability-linked bonds. It mandated KPI-linked disclosures and third-party verification. 'While the framework is robust, its effectiveness will depend on the independence and reputation of the third party hired," said Varghese. 'L&T has long-standing sustainability targets, including carbon and water neutrality," said Heena Khushalani, partner, climate change and sustainability services, EY India. 'For a company with strong internal momentum on ESG and measurable long-term targets, this instrument is flexible and a logical step," she added. Khushalani also pointed out that SLBs often include coupon rate adjustments based on the achievement of sustainability targets. 'If attractive coupon rates—like the 6.35% in L&T's case—become a trend, it'll incentivise more issuers," she said. To be clear, among green bonds with a three-year tenure, Avaada Solaris and Clean Sustainable Energy offer a 6.75% coupon rate, according to data from Prime Database. Still, a shortage of qualified reviewers in India could delay issuances. 'This could create bottlenecks in timely issuance and validation," Aggarwal warned. Khushalani said, 'Sebi, NSE, or platforms like GIFT City could jointly issue guidelines or empanel competent verifiers to mitigate greenwashing risks." The push for sustainable finance is likely to grow, especially among large firms with net-zero commitments. Experts said the Sebi framework has brought regulatory clarity and boosted investor confidence. 'As successful examples emerge, more corporates are likely to explore ESG bonds, not just as a funding tool but as a strategic instrument to align with global investor expectations," said L. Shivakumar, CEO of ICRA ESG Ratings Ltd. Shivakumar also highlighted India's proposed draft climate finance taxonomy, aimed at bringing consistency to ESG disclosures by aligning them with global standards. 'It will provide a structured classification system that enables better comparability and tracking of outcomes," he added. Smaller firms could struggle Despite policy momentum, experts said smaller firms could struggle to participate in the ESG debt market owing to high compliance costs, limited visibility, and weaker secondary-market liquidity. 'So far we have seen only large, reputed Indian corporations issuing ESG-labelled bonds," said Varghese. 'For smaller companies with smaller fund requirements, issuance costs may prove significant." Indian Renewable Energy Development Agency Limited issued a 10-year bond for ₹590 crore in 2019 and Dme Development Limited issued a 10-year bond for ₹775 crore in 2024. An analyst at a rating agency said, 'The real test will be how effectively Sebi ensures enforcement and prevents greenwashing. Without that, the credibility of the entire market is at stake."
