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Tracking transaction banking’s pivot to sustainability
Best ESG solution winners reveal how CFOs and treasurers are working to embrace ESG principles
27 Apr 2021 | The Asset

While the Asia-Pacific finance industry has been encouraged recently by the rapid development of the green bond and sustainable-linked loan market, the transaction banking side of things in the region has a tall order in managing its pivot towards incorporating sustainable finance and environmental, social and governance (ESG) principles into its operations.

That said, several transaction banks in the region have started to evaluate or have already deployed solutions for clients that are looking to be more sustainable. Several successful supplier financing schemes have been implemented by programme anchors that incentivize suppliers to improve their sustainability practices. Typically, the sustainability scores of a particular supplier are evaluated on the basis of a third-party verifier or against the programme anchor’s sustainability report.  

This year, in assessing the Best ESG Solution winners of The Triple A Treasury, Trade, Sustainable Supply Chain and Risk Management Awards 2021, the board of editors at The Asset were presented with several trailblazing sustainable supply-chain type solutions, in particular, several from the textile sector where there is an increased focus on improving the production condition standards for workers.

This year’s winners include several supply-chain financing programmes used by project sponsor companies active in developing renewable energy capabilities, particularly in markets like India, where working capital is critical in procuring the equipment needed in developing solar power.

The board of editors has also noted that the Covid-19 pandemic accelerated embrace of digitization has not only cut costs for treasury management professionals like CFOs and treasurers, but it has had a positive impact on several sectors, for example, in education, where schools are often forced to struggle with manual transactions. As a result, several schools have embraced quick response (QR) code technology, doing away with costly cash and cheque payment processes.

As well, exciting new types of sustainable-focused products are on the horizon for treasury management professionals to interact with, such as FX derivatives linked to ESG performance indicators and green letters of credit.

Over the next few days, The Asset will reveal other winners of The Triple A Treasury, Trade, Sustainable Supply Chain and Risk Management Awards 2021. The virtual awards ceremony for these awards will take place on June 17, 2021.

To see the Best ESG solution winners, please click here.

To learn more about these awards, please click here.

For more information about receiving the awards, please contact events@theasset.com.