Monash-developed case studies spotlight sustainable finance in Malaysian companies
Sustainable finance is crucial for building a resilient future, but its widespread adoption remains a challenge. Amidst these challenges, some forward-thinking companies have embraced opportunities to create an economically resilient, socially inclusive, and environmentally sustainable financial landscape.
In recognition of its expertise, the School of Business at Monash University Malaysia was appointed as the knowledge partner for the Malaysian Chief Financial Officers Collective Action Program (MY CFO CAP), a joint initiative by Capital Markets Malaysia and the UN Global Compact Network Malaysia & Brunei. A team of researchers from the School of Business, comprising Dr Norita Mohd Nasir, Dr Puspavathy Rassiah, Dr Ravichandran Subramaniam, Associate Professor Karren Khaw, Associate Professor Yessy Arnold Perangin Angin, and Professor Mohan Avvari, developed a report featuring case studies on Malaysian businesses that have adopted sustainable finance as a cornerstone of their environmental business strategy.
The report contains four case studies showcasing how major Malaysian companies like Axiata Group Berhad, IOI Corporation Berhad, reNIKOLA Holdings Sdn Bhd, and Yinson Holdings Berhad have embraced sustainable finance initiatives across diverse sectors. It highlights these companies' pioneering sustainable finance efforts, such as issuing green sukuk, sustainable syndicated financing facilities, and sustainability-linked sukuk wakalah. The report also details the challenges faced, including regulatory hurdles, defining transparent sustainability targets, and ensuring adherence to Shariah principles.
Despite the challenges, these companies have derived significant benefits by aligning their financial strategies with sustainability goals. This includes cost savings, access to new investor pools, strategic positioning amidst the global energy transition, and progress towards ambitious climate targets like achieving net zero emissions.
The report (which can be downloaded here) provides valuable insights that can inspire and guide other companies toward accessing sustainable finance and building a more sustainable future.