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SAP, IBM urge Asia-Pacific banks to engage in more sustainable financing
Many technology firms see market potential in the sustainable finance industry as banks would need more data-processing capacities to track ESG data.
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An aerial survey mission by Greenpeace in Central Kalimantan shows a general view of trees in a forest on Feb. 24, 2014. (AFP/Bay Ismoyo)
M
ultinational technology firms SAP and IBM are calling on banks in Asia Pacific to expand sustainable finance practices, hoping to grow market demand for big data technology to track environmental, social and governance (ESG) indicators.
Bambang Moerwato, regional vice president of multinational software firm SAP, said banks could offer incentives like decreased borrowing costs for companies trying to make their operations greener. These efforts could reinforce government initiatives to accelerate sustainable finance.
“So it's becoming a race, and there's a survey, which calls out sustainability as one of the risks that many banks will be talking about, and seriously need to tackle. So this has to be managed beyond just what we report,” Bambang told reporters in Singapore.
Read also: Mitigating climate change through sustainable financing
Many technology firms see a market potential in the sustainable finance industry as lenders would need greater data-processing capacities to keep track of the ESG-related data of borrowers.
The International Energy Agency estimates that global investments in clean energy will need to increase from the current US$2 trillion to $5 trillion by 2050 to reach net-zero goals.
Banks are considered one of the most viable options to close the funding gap, and they can drive borrowing companies to be more conscious about sustainability.
