ASEAN firms want to be green

If left unaddressed, the Asian Development Bank forecasts that climate change could reduce Southeast Asia’s GDP by 11 percent by the end of the century.

Southeast Asian firms top the charts globally for their bullish growth prospects as well as their sense of accountability for achieving the United Nations’ (UN) sustainability goals. However, commitment needs to convert into practical action, according to HSBC.

The findings come from HSBC’s ‘Navigator: Now, next and how,’ a survey of over 9,100 companies in 35 countries and territories, including the views of the key decision makers in 2,299 businesses across Southeast Asia.

Navigator reveals that 81 percent of companies in Southeast Asia are projecting business growth next year (higher than the global average: 79 percent). Additionally, 76 percent of surveyed Southeast Asian firms believe they have a role in delivering the United Nations’ Sustainable Development Goals (SDG), compared to the 63 percent global average.

The bullishness of Southeast Asian firms reflects the growth trajectory and favorable demographics of the region. Collectively, the 10 ASEAN countries’ combined GDP stood at almost $3 trillion in 2018 – more than the UK, France or India, and the region has enjoyed 5 percent growth rates over several years.

However, the case for sustainable development across Southeast Asia is irrefutable given the region is increasingly and disproportionately exposed to climate change.

For example, Lloyd’s estimates that $22.5 billion of GDP is at risk from flooding in Southeast Asian cities alone. If left unaddressed, the Asian Development Bank forecasts that climate change could reduce Southeast Asia’s GDP by 11 percent by the end of the century.

Matthew Lobner, Head of International and Head of Strategy and Planning, Asia-Pacific, HSBC, said: “ASEAN is home to some of the world’s most bullish businesses — and these high-growth firms are acutely aware that sustainability and commercial goals go hand in hand. It’s very pleasing to see the sense of focus that Southeast Asian firms have towards the UN’s SDG but must now convert from desire into meaningful action. As investors and governments increase their focus on sustainability, firms need to be focusing on this now.”