Countries are beginning to break out from the impact of the global pandemic, but the world is still far from well. As devastating as COVID-19 has been and continues to be, the more enduring threat of climate change still looms on the horizon. The rise in global temperatures will have an even more catastrophic impact on humanity, if swift and timely actions are not taken to reverse the risk.

Governments are now using the pandemic crisis to reset their economies on a path towards green recovery. This means locking-in development gains for all citizens, while protecting the environment to slow the impacts of climate change and future pandemics. For emerging companies that are ready for growth, there is no better time than now to look ahead, inside, and around through the sustainability lens to unlock the immense potential of ASEAN's green economy.

A Prize Worth Playing For

ASEAN governments are waking up to the economic and social potentials of the green economy, due in equal parts to need and opportunity. Research by the Asian Development Bank (ADB) projects that the region's transformation towards a greener economy could offer up to USD 1 trillion in annual economic opportunities by 2030.

The ADB outlined five priority green growth opportunities based on economic potential and number of jobs created, as well as the extent of environmental damage that can be addressed by each opportunity. These opportunities include productive, regenerative agriculture; sustainable urban development and transport models; clean energy transitions; circular economy models; and healthy and productive oceans.

If leveraged fully, all five green growth opportunities can create an additional 30 million jobs combined in ASEAN by 2030 , while supporting the region in meeting up its Sustainable Development Goals (SDG) commitments. However, greening ASEAN's economy will require about USD 172 billion in capital investments - a sign that the challenge cannot be met by governments alone.

Businesses must join forces with regional governments to re-imagine the future of Southeast Asia, embedding sustainability considerations across their value chains, not only it is the right thing to do, but it is also because there are clear business benefits to be won.

Rewriting the Playbook for Growth

Sustainability consciousness among consumers has been on the rise in ASEAN with the emergence of a digitally savvy middle-class in the past decade. Most consumers in the region, up to 90% in Singapore, believe that businesses have a responsibility to do social good which has turned into a necessity for success in all of them.

To be responsible corporate citizens, Maybank believes companies must look ahead to understand how to take advantage of new growth opportunities, as well as what risks and challenges that could arise.

Citing our own experience, Maybank established our Responsible Lending Guidelines in 2015 and subsequently expanded in 2018 to form Maybank's ESG Policy. Our ESG Policy ensures we are managing environmental risks when lending and investing in new opportunities.

Secondly, executives must look inside their company to see what initiatives they can launch to solidify their sustainability positioning and capabilities in regional markets. French utility company ENGIE for example, launched ENGIE Factory Asia Pacific in 2018. Acting as a venture arm, ENGIE APAC builds, scales, and invests in local start-ups that have the potential to accelerate the transition to a zero-carbon future.

Finally, looking around to build alliances within the broader business ecosystem is essential for building sustainable value chains across ASEAN. For example, GROW, a Southeast Asian tech accelerator, collaborated with Dole Packaged Goods, a consumer goods company, to launch the "Singapore Food Bowl" - a programme that brings together industry and start-ups to build a sustainable agri-food system.

ASEAN has all the ingredients it needs for a successful transition to the green economy - geographic proximity to global leaders, an educated population, and increasingly attractive investment environment. Emerging businesses can provide the means to accelerate this transition by supplying the regional value chains to meet tomorrow's sustainability demands.

Maybank at the Heart of ASEAN Sustainability

Maybank is working together with stakeholders across all tiers of the value chain to help facilitate a just transition for our clients. Building on our ESG framework, we have integrated sustainability into our financing and mobilise capital to areas and innovative solutions where it is needed, including those that have material positive impact on our communities and natural systems.

We intend to work only with partners who have demonstrated their commitment to sustainable future. We will not finance nor continue our associations where we believe that our objective of a responsible transition is not aligned. Our expert ESG guidance and support, coupled with our comprehensive suite of integrated transaction banking and supply chain financing services, offers an excellent springboard to launch green businesses or pursue new sustainable financing opportunities.

Leveraging on our deep experience in ASEAN markets, Maybank empowers our clients with local insights to navigate the regulatory and business landscapes. We are also one of the first banks to launch a truly regional cash management system to enhance our clients' liquidity management and transaction execution with Maybank 2E-Regional Cash (RC) and Maybank Trade Connex.

As we grow together with our customers, the Maybank brand has reached all 10 ASEAN countries, Greater China, and other global financial markets including Hong Kong, Singapore, Dubai, London, and New York. Our aspiration is to be the top ASEAN bank, fulfilling our customers' ambitions in the region and linking them to Asia and the world.

Positioning ourselves for the future, Maybank is committed to becoming a regional ESG leader. Under Maybank's strategic priority for Sustainability, we have outlined four key sustainability commitments including to mobilise RM50 billion (USD11 billion) in sustainable finance by 2025 and to improve the lives of 1 million households across ASEAN by 2025. We look forward to helping ASEAN businesses make a difference where it truly matters.

Interested in building a green and sustainable ASEAN business? Speak to our team today and get connected with Maybank's trade and transaction banking services.