Banks in Asia-Pacific must ‘make up ground fast’ in implementing sustainability practices, according to Mazars study

Name: Chinese activist who spent decades protecting Dianchi Lake finally sees polluters named and shamed
Uploaded: 2022-01-20T00:30:14.000Z
Duration: 4 min 12 s
Description: Chinese activist who spent decades protecting Dianchi Lake finally sees polluters named and shamed

The region’s lenders came out worst in the categories of governance, risk management and disclosure

Asia-Pacific ‘faces a lack of standardised regulation and reporting methodology’, says the report

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The pandemic has served as a ‘wake-up call for financial institutions to finance low-emissions sustainable development’, the report said. Photo: Shutterstock

Martin Choi

Published: 8:30am, 20 Jan 2022

Banks in the Asia-Pacific region need to “make up ground fast” in terms of implementing sustainability practices, as their global peers have made significant progress, according to a study by audit and advisory firm Mazars.

The region’s lenders scored lowest in the categories of governance, risk management and disclosure, according to the “Responsible banking practices in APAC benchmark study 2021” report released on Wednesday.

“The diverse region faces a lack of standardised regulation and reporting methodology, where regulators in each market predominantly work in isolation. With Asia being the largest primary energy consumer, regulations must be bolstered to encourage sustainability-decision making and drive the ESG (environmental, social and governance) agenda,” said Justin Tan, a partner in financial services consulting in Asia-Pacific at Mazars.

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Chinese activist who spent decades protecting Dianchi Lake finally sees polluters named and shamed

“The pandemic has served as a wake-up call for financial institutions in [the region] to strengthen their efforts in reorienting capital flows and financing innovation in support of low-emissions sustainable development.”

Now in its third year, the global study assesses the sustainability practices of 37 of the world’s largest banks by total assets in their respective geographies, including six in the Asia-Pacific region.

The analysis was based on the banks’ 2020 to 2021 reporting period as well as publicly available information, such as their annual reports and data on websites up to July 2021.

The report said there were “significant discrepancies” in the region between the best-performing countries and China, without elaborating. Two Chinese banks – Industrial and Commercial Bank of China (ICBC) and Agricultural Bank of China – were among the six Asia-Pacific banks assessed.

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