Citigroup: "94% of Asia-Pacific Companies Have Implemented or Plan to Implement ESG"

Citigroup 'Asia's Opportunities for a Sustainable Future' Report
Survey of 259 Employees from Corporate Clients in 14 Asia-Pacific Countries

[Asia Economy Reporter Song Seung-seop] The number of companies pursuing ESG management has been increasing due to COVID-19. In particular, it was found that 94% of companies in the Asia-Pacific region have implemented or plan to implement ESG (Environmental, Social, and Governance) policies.

According to the report "Asia's Opportunities for a Sustainable Future" released by Citigroup on the 14th, 54% of Asia-Pacific companies responded that they have ESG policies linked to their strategies or have cases of implementation. Most of the remaining respondents (40%) said they plan to introduce ESG policies within the next five years. Only 6% of companies had no plans. Among them, more than two-thirds responded that the introduction of ESG policies accelerated due to COVID-19.

The survey was conducted in the first quarter of this year targeting 259 corporate clients from 14 countries in the Asia-Pacific region. The majority of respondents were senior-level executives, including CEOs (16%), group heads (24%), directors (26%), and department heads or higher (28%).

Regarding the reasons for complying with ESG standards, 65% answered that it was due to the overall sustainability strategy of the company, which was the most common response. Social and environmental factors followed at 48%, and positive impacts on customers and stakeholders at 47%. Only 22% cited demand and pricing of ESG products as reasons.

As for the most important stakeholders in ESG policies and implementation, 33% chose government and authorities, followed by investors (21%) and customers (20%). When asked to select three areas of interest in sustainable finance and green finance, green finance (22%) was chosen the most. In cumulative responses, those who answered ESG-related capital finance (42%) were the largest group.

Citigroup explained that it is strengthening support for customers in the Asia region for green finance and a sustainable society. This includes helping clients transition to more eco-friendly portfolios or jointly developing solutions. Additionally, Citigroup has developed and is providing its first proprietary indicator, the "ESG World Index."

Meanwhile, in the first half of this year, Citigroup achieved over $25 billion in sustainable finance in the Asia-Pacific region, a 400% increase compared to the same period last year. Citibank Korea accounted for 17 transactions in the Asia-Pacific sustainable finance deals, the highest number in the region. The balance exceeded $8.1 billion.

Peter Babez, CEO of Citigroup Asia-Pacific, emphasized, "Citigroup supports the transition to a low-carbon economy," adding, "We believe sustainable finance is both an opportunity and an obligation to achieve decarbonization."

This content was produced with the assistance of AI translation services.