skip to log on skip to main content
VoiceOver users please use the tab key when navigating expanded menus
Article related to:


Unlocking APAC’s decarbonisation opportunity

GE, Institutional, ANZ & Co-founding Partner, Pollination

2022-02-16 00:00

The opportunity for business in the global push to net-zero is extraordinary. The change taking place is transformational, and the pace is rapid.

Many developed economies are already well advanced in their response. This means for businesses trying to get in on the ground floor, the opportunity has shifted to the Asia Pacific.

Already we’ve seen significant leadership in the region toward decarbonisation. India is becoming a powerhouse in renewable energy. Singapore is positioning itself as a green finance hub. And in Japan, pension funds have been long-term supporters of sustainable capital.

The region is awash with natural capital assets, which is a critical part of the world’s climate solution. But the traditional capital opportunity is also large, with the green market in Asia alone worth potentially $US1 trillion, according to some estimates.

Funding that shift will be critical, and demand for sustainable finance is rising fast. Data show global sustainable issuance rose to over $US1.6 trillion in 2021, more than double a COVID-impacted 2020. The scope of the total sustainable debt market is by some estimates $US4 trillion.

This is not a traditional shift in the market, but rather a wholesale transformation of the way we fund our businesses and recognise environmental, social and governance (ESG) risk, particularly around climate change. What we now think of as ‘green finance’ is going to just be ‘finance’ – both in the Asia Pacific and globally.

And the demand for green won’t stop there. As sustainably managed capital becomes the standard way debt and equity are managed in the system, attention will shift toward a class of ‘super-green’ assets, with mandates above and beyond what exists today. We’re already seeing a slow but structural shift in capital weights in the market, as well as pricing which incentivises being greener (the so-called ‘greenium’).

What this means is there’s still time for businesses lagging behind to embrace the sustainable finance opportunity - a $US4 trillion one, to repeat - and that those who harness it now can place themselves in a strong position for the future.

We have seen that shift in the market and entered into a strategic partnership together to best position our clients and customers.

The partnership – which will also see ANZ take a $US50 million minority equity stake in Pollination - allows both companies, each with their own impressive records on sustainable finance, to increase their impact delivering solutions and support across the Asia Pacific, at a volume and a scale unreachable without the strategic partnership.

For businesses staring into this change, being able to rely on this partnership will provide the depth of understanding and experience needed to navigate the transition. Pollination can see and process the risks of the green tilt that others can’t. ANZ has a track record helping clients reconstitute finance sustainably and leads the market in doing so.

What’s clear is the criticality and opportunity for rapid decarbonisation in the Asia-Pacific region is unique and significant. Many parts of the region are on the front line of climate change and resulting loss of natural capital.

What’s also clear is the preference of the traditional capital system is shifting. Organisations have a lot to gain from how they transform the way they interact with their capital holders.

Done correctly, and with the right partners, businesses can be part of the new capital stack, and avoid being isolated in the non-green world. Because that world will get smaller and smaller, and the advantages of operating outside it will be larger and larger.

Being able to manage your organisation in the way consistent with the needs of the modern capital system - and also being able to convey that management with the right people in the right way - is going to become a bigger advantage. And there is help at hand.

Achieving the Paris Goals requires capital, and companies to invest in ideas that will become the investment propositions or solutions of tomorrow.

As our climate changes, the premium of being able to not just operate in a sustainable way, but fund those operations in a sustainable way, is only going to rise – in the Asia Pacific, and around the world.

Mark Whelan is GE, Institutional at ANZ & Martijn Wilder AM is Co-founding Partner at Pollination

Unlocking APAC’s decarbonisation opportunity
Mark Whelan & Martijn Wilder AM
GE, Institutional, ANZ & Co-founding Partner, Pollination

Related articles

  • Sustainability

    WATCH: partnering towards net-zero

    Staff Writer ANZ Insights

    Strategic partnership between ANZ and Pollination will provide innovative financing solutions amid the transition to net-zero, according to Katharine Tapley and Zoe Whitton.

    2022-02-15 00:00
  • Sustainability

    The ABCs of H2

    John Hirjee, Jessica Paterson & Sharon Klyne Executive Director - REI; Graduate; & Associate Director, Communications, ANZ Institutional

    The commercialisation of hydrogen gives Australia a unique opportunity to develop a new export commodity to help in the rapid decarbonisation of the global economy.

    2022-02-10 00:00

This publication is published by Australia and New Zealand Banking Group Limited ABN 11 005 357 522 (“ANZBGL”) in Australia. This publication is intended as thought-leadership material. It is not published with the intention of providing any direct or indirect recommendations relating to any financial product, asset class or trading strategy. The information in this publication is not intended to influence any person to make a decision in relation to a financial product or class of financial products. It is general in nature and does not take account of the circumstances of any individual or class of individuals. Nothing in this publication constitutes a recommendation, solicitation or offer by ANZBGL or its branches or subsidiaries (collectively “ANZ”) to you to acquire a product or service, or an offer by ANZ to provide you with other products or services. All information contained in this publication is based on information available at the time of publication. While this publication has been prepared in good faith, no representation, warranty, assurance or undertaking is or will be made, and no responsibility or liability is or will be accepted by ANZ in relation to the accuracy or completeness of this publication or the use of information contained in this publication. ANZ does not provide any financial, investment, legal or taxation advice in connection with this publication.