As the G20 Summit commences in Osaka today, Fair Finance Asia (a regional network of civil society organisations in Asia) calls on the G20 to strengthen its leadership and actions in implementing socially and environmentally sustainable finance and responsible investments.
In line with the Civil 20 (C20) policy recommendations submitted to the leaders of the G20 in April this year, Fair Finance Asia (FFA) urges the leaders of these countries to boost policies and regulations, and bolster quality investments in a way that addresses climate change, helps achieve the Sustainable Development Goals (SDGs) and inclusive economic development, and promotes human rights for all.
2. IN ALIGNMENT WITH THE C20, FAIR FINANCE ASIA (FFA)
HEREBY CALLS ON THE G20 MINISTERS OF FINANCE, CENTRAL
BANK GOVERNORS, AND G20 LEADERS TO AGREE AND COMMIT
TO THE FOLLOWING ACTIONS:
RECOMMENDATIONS
TO THE C20 JAPAN
DESIGN, IMPLEMENT, AND
PROMOTE POLICIES AND
REGULATIONS TO RE-ORIENT
FINANCIAL FLOWS. ---------------------
To do so, identify and communicate how
much additional private capital is needed
for which kind of activities, within which
time frame to address climate change
consistent with the Paris Agreement,
achieve the SDGs and inclusive pro-poor
economic development, and transform
production and consumption that is
respectful of human rights such as
labour rights and non-discrimination,
and environmentally friendly
COOPERATE AND IDENTIFY
MEASURES TO PREVENT NEGATIVE
CONSEQUENCES OF NEW AND
EXISTING ALLOCATION OF
FINANCIAL RESOURCES ---------------
and invest them away from socially and
environmentally harmful activities. Use
all means, including new technologies,
to promote financial inclusion with a
specific consideration to redress the
gender imbalance in terms of access.
WHEN PROMOTING ‘QUALITY
INFRASTRUCTURE INVESTMENT’,
ENSURE THAT ALL HUMAN AND
ENVIRONMENTAL ASPECTS, THE
PUBLIC INTEREST AND UNIVERSAL
ACCESS ARE FULLY PROTECTED,---
including through consultations with
affected right holders and other
stakeholders. At the same time the public
sector should ensure that it does not
guarantee private gains through Public
Private Partnerships while bearing the
losses. More public financing for quality
infrastructure should be raised by
tackling tax avoidance and evasion.
DEVELOP STANDARDS AND
PROMOTE POLICIES AND
LEGISLATION ON HOW ALL
PUBLIC AND PRIVATE LENDERS
AND INVESTORS, INCLUDING
INVESTMENTS THROUGH
FINANCIAL INTERMEDIARIES,
SHOULD BE TRANSPARENT ----------
about how they assess social and
environmental risks as well as impacts,
beyond those that affect the (short term)
value of the loans or investments. In
addition, support independent (official)
institutions/mechanisms and regulate
sustainability ratings, to ensure that the
actual social and environmental impacts
of loans and investments are fully
assessed throughout the value chains
of the companies invested in. Moreover,
such mechanisms and regulations should
ensure such negative impacts
are averted.
3. ENHANCE AND STRENGTHEN
COOPERATION AMONG
REGULATORS AND SUPERVISORS
AND PUBLIC DEVELOPMENT
BANKS, -------------------------------------
through Sustainable Banking Network
(SBN) and Network for Greening the
Financial System (NGFS), to assess the
transparency and impact of loans and
investments that claim to avoid negative
social and environmental impacts, and/
or contribute to sustainability. The aim
would be to prevent misallocation of
investments and strengthen the trust
of clients and investors who are weary
of the lack of ethical or sustainability
standards and the many forms of
‘green washing’.
IDENTIFY AND PRIORITISE, IN
CONSULTATION WITH CIVIL
SOCIETY, ECONOMIC SECTORS AND
VALUE CHAINS THAT ARE MAJOR
CONTRIBUTORS TO HUMAN RIGHTS
BREACHES, SOCIAL CONFLICTS,
ENVIRONMENTAL DESTRUCTION
AND CLIMATE CHANGE (THROUGH
PRODUCTION AND CONSUMPTION).
Promote binding measures in order
to prevent the financing of these
sectors from contributing to social and
environmental problems, and to ensure
that the financial sector contributes to a
just transition of these sectors.
MONITOR AND PUBLISH DATA PER
FINANCIAL INSTITUTION AND PER
COUNTRY ABOUT LOANS AND
INVESTMENTS THAT CONTRIBUTE
TO CLIMATE CHANGE, BREACH OF
HUMAN AND SOCIAL RIGHTS, AND
ENVIRONMENTAL DESTRUCTION,
since these loans and investments are
likely to become environmental and
social stranded assets. Cooperate to
develop forward looking scenario’s to
be applied by the financial sector and
financial authorities in order to prevent
long term negative environmental and
social impacts and related stranded
assets. Such scenarios could provide
guidance on how the whole financial
system should contribute to achieving
the SDGs, stopping climate change and
respecting human rights.
ENDORSED BY FAIR FINANCE ASIA:
• Fair Finance Cambodia
• Fair Finance Japan
• Fair Finance India
• ResponsiBank Indonesia
• Fair Finance Philippines
• Fair Finance Thailand
• Fair Finance Vietnam
• Oxfam
4. Our goal is to ensure financial institutions in Asia have
a regulatory obligation to screen, and publicly report
on, their investments in businesses against common
Environmental, Social and Governance (ESG) criteria.
This is not only essential for countries in the region to
achieve their Sustainable Development Goals, but also
enables financial institutions to generate superior returns.
We work with national and regional stakeholders in the
public and private sector to facilitate the development of
appropriate ESG policies and regulations. This includes
providing research, advocacy, training, and platforms for
multi-stakeholder discussions.
Fair Finance Asia is funded by the Swedish Embassy in
Bangkok, Thailand, and administered by Oxfam.
YUKI TANABE
PROGRAM DIRECTOR
Japan Center for a Sustainable
Environment and Society
(JACSES)
tanabe@jacses.org
BERNADETTE VICTORIO
REGIONAL PROGRAM LEAD
Fair Finance Asia
bernadette.victorio@oxfam.org
CONTACT:
