Sustainable banking in ASEAN: Update 2019
This report is an update on the third Sustainable Banking Assessment, covering Environmental, Social and Governance (ESG) integration performance across 35 ASEAN banks. The authors reviewed only publicly available, English-language disclosures in the form of 2018 annual reports, 2018 sustainability or CSR reports as well as information posted on corporate websites such as company policies, statements, investor presentations and press releases.
The report reveals that ASEAN banks may not be aware of the extent of climate-related risks embedded in their portfolios and do not have a strategy to manage these risks. Only two banks reviewed and disclosed their portfolio exposure to climate-related risks, while two other banks have developed a climate strategy. As a result, banks may not understand in which sectors they have the highest concentration of climate-related risks. The report also contains a series of recommendations for ASEAN banks, shareholders and banking regulators and associations.