Sustainability through Engagement, Empowerment, & Mobilisation
The financial world has the responsibility and power to steer the economy towards one that is climate-friendly, inclusive and sustainable for the long run. While doing so, they will not only solve the climate issues but many other bigger challenges the world faces today. The Sustainable Development Goals (SDGs) are achievable when the investor community, the investee and the entire supply chain innovate at scale, rapidly scale-up, transform and become long-term focused and sustainable at the pace they must.
SEEM's Journey
Sep 1, 2018
Sep 25, 2018
Jun 11, 2019
Aug 8, 2019
Dec 5, 2022
Oct 11, 2023
It is possible when entities have a Purpose, a higher Purpose beyond just making a profit that becomes the core of their transformation for their long-term sustainability. The financial system becomes clean, robust, purposeful & inclusive in their investments, and sustainable for the longterm. The corporates (and FIs too) disclose their standardised just & resilient NetZero Transition Plans including outcome based universal ESG metrics with comparable sustainability performance at a standardised frequency. The FIs capture them accurately and leverage digital technology for their meaningful usage in measuring businesses’ true creditworthiness considering them alongside their financials and compliance aspects as holistic credit risk ratings, quantify credit and compliance risk more accurately and discretely at each transaction level for quantified underwritings, comply with all regulations with agility, innovate sustainable finance and its blended form, at scale and speed, and mobilise private capital for EMDEs with their MSMEs. In this the FIs need to consolidate these standardised metrics from their portfolio companies' and assets' disclosed standardised versions of just & resilient NetZero Transition Plans in proportion to investments into them.
Entity-level systemic change for innovation at scale and their rapid scale-ups in sustainable finance and products and services in sectors like energy, cement, steel, aviation, industrialised food production and all others extended to their supply chains and the rest directly or indirectly through the standardised transformation methodology CTM(Change thru Movement) centred on entities’ Purpose for their longterm sustainability
and aiming to achieve their fair share of direct/indirect climate goals and all SDGs by 2030
and Digital Transformation (regTech product CBD for Corporate & Investment banks for their longterm sustainability with their re-usable features around holistic credit risk ratings and quantified underwritings accessible to anyone)
Entities’ Just & Resilient NetZero Transition at the pace they
must achieve their fair share of dir/indirect climate goals and all SDGs by 2030 (at the highest level will be mapped with the WBG's scorecard's 22 Indicators)
Entities' long-term sustainability
Direct/indirect deployment & disclosures of standardised versions of entities' just & resilient netZero transition plans across financial & real economy, deploying full or part CTM including qualitative, & quantitative universal ESG metrics with comparable* sustainability performance (GHGs measurements done by other parties)
RegTech product Compliance by Design for corporate and investment banks solving their challenges in complying with regulations, money laundering, inaccurate quantification of credit & compliance risk, data silo, bank-wide MIS etc. making them clean, robust, purposeful & sustainable
Solving greenwashing and SDG-washing
Authentic holistic credit risk ratings and quantified underwritings through regTech product CBD and its reusable features accessible to anyone
Innovations and rapid scale-ups are in sustainable finance with its blended variation across transition finance, climate finance, impact investing, development finance, etc., through sustainable loans, bonds, funds, indices, etc. It includes for EMDEs along with their MSMEs mobilising private capital leveraging concessional finance, guarantees, grants etc.
-
An entity (financial institution or corporate) becomes sustainable for the long term, when it contributes directly/indirectly towards its ecosystem with a multi-stakeholder focus
-
The direct or indirect impacts are often non-financial outcomes and they do not come from a profit mindset but entities having a Purpose, a higher purpose beyond just making a profit. Examples could be reduction of negative impacts due to money laundering, inaccurate credit risk quantification, GHGs emissions, negative impacts on nature & biodiversity, lack of inclusivity at workplace, ignorance towards society, lack of focus on netzero on non-recycled plastics, non-recycled water and other commodities that are taken for granted, etc.
-
Climate change is not a standalone problem; the issues behind the SDGs are intertwined with the problem of climate change. Entities need to achieve their fair share of direct/indirect climate goals and all SDGs by 2030. Needs rapid innovations and scale-ups, culture and mindset shifts, solve issues of off-takes, align capital for the same, etc.
-
The financial system has the responsibility and power to steer the economy towards one that is climate-friendly, inclusive, and sustainable for the long term. It needs to leverage on authentic outcome based universal ESG metrics with comparable sustainability performance, digital transformation for accurate credit and compliance risk quantification, holistic credit risk rating, quantified underwritings, an authentic, robust & transparent ESG asset class built thereby, etc. leading to innovation in sustainable finance and its blended variation across transition finance, climate finance, impact investing, development finance, etc. through sustainable loans, bonds, funds, indices etc. Accurate credit risk quantification when providing concessional finance, guarantees, grants etc. and visibility of impact on the ground will ultimately mobilise private capital for EMDEs including MSMEs at scale and speed.