Common standards introduced for green bonds in Asean

The Securities Commission of Malaysia building in Kuala Lumpur is a 2001 Asean Energy Award winner where it saves RM2.5mil per annum alone on electricity bills.

KUALA LUMPUR: The Asean Capital Markets Forum (ACMF) has collaborated with the International Capital Market Association (ICMA) to introduce Asean Green Bond Standards.

This initiative would facilitate Asean capital markets in tapping green finance to support sustainable regional growth and meet investor interest for green investments.

Among key initiatives endorsed at the 26th ACMF meeting on Monday was a newly revised Asean Corporate Governance Scorecard.

Assessments using the revised scorecard would start in the second quarter of this year.

In a statement, the Securities Commission Malaysia said the initiative was a part of ACMF’s efforts to develop green finance for the region.

“The Asean Green Bond Standards would be developed based on ICMA’s Green Bond Principles (GBP). 

“The standards intend to provide additional guidance on GBP application, as well as to enhance transparency, consistency and uniformity of Asean green bonds to contribute to the development of a new asset class.

“The revised scorecard would include new assessment questions, particularly on stakeholders’ role, and streamline questions on practicing corporate governance. 

“Another key change to the assessment is the introduction of an independent validation in addition to the existing peer-review process,” it said. 

The enhancements were introduced to strengthen the quality of assessment and expand insights on corporate governance practices in participating countries. - Bernama