Interview with Caldecott, Founding Chairman of UK Green Finance Institute and World's Leading Green Finance Authority
Keynote Speaker at the 10th Seoul Asia Financial Forum on the 25th of this Month
Caldecott: "An Era Where Companies Earn or Lose Money Through ESG Has Arrived"
[Asia Economy Reporter Kwangho Lee] Professor Ben Caldecott of the University of Oxford in the UK emphasized on the 18th that "companies need to focus more on environmental and social factors to achieve sustainable growth."
Professor Caldecott, who will deliver the keynote speech at the ‘10th 2021 Seoul Asian Financial Forum’ hosted by Asia Economy on the 25th, stated in a pre-interview, "A situation has arrived where all industries will either earn more or lose money based on ESG (Environmental, Social, and Governance) criteria."
Professor Caldecott is the founder and chair of the Sustainable Finance program at the University of Oxford and is regarded as a world-leading authority on green finance. He serves as the founding chair and chief investigator at the Centre for Green Finance and Investment (CGF), established by the UK?the host country of the UN Climate Change Conference this November?to adopt and utilize climate environment data and analytical research.
He advised, "As ESG is being priced, another pressing issue is the ‘setting of ESG standards’," adding, "It is urgent to find the right and appropriate methods to measure related factors." He diagnosed that the rapid growth of ESG and green finance is due to the material valuation of related factors.
Professor Caldecott predicted, "To meet the Paris Agreement standard of ‘1.5 degrees Celsius global temperature change,’ an additional investment of about $1.5 trillion is needed by 2050 compared to current investment amounts," and "The enormous capital demand derived from this will be an opportunity for asset management-related financial services."
According to a survey conducted by the CFA Institute, a global association of investment management professionals, 89% of institutional investors responded that ESG should be considered for sustainable long-term returns. Additionally, 73% of respondents said they consider ESG issues in investment analysis and decision-making.
He emphasized, "CEOs must establish explicit strategies annually for long-term value creation and ensure that the board of directors reviews them."
As Professor Caldecott diagnosed, social demands to protect the environment and strengthen social safety nets are growing stronger after COVID-19. Since ESG has emerged as a survival condition or core value of corporate management, it is time to examine what successful strategies are to overcome internal and external risks, create new value, and move toward sustainable growth.
Through this forum, Asia Economy seeks to explore ways to build the present and future of ESG with global economic experts under the theme of ‘Future Financial Innovation and Sustainable Growth.’
[Notice] "The Present and Future of ESG"
Event Name: The 10th 2021 Seoul Asian Financial Forum
Theme: Future Financial Innovation and Sustainable Growth
Date & Time: May 25, 2021 (Tuesday) 08:30~14:30 | VIP Tea Time 08:00 ~ 08:30 (2F, Lilac & Tulip Room)
Venue: Grand Ballroom, Westin Chosun Hotel, Sogong-dong, Seoul (1F)
Host: Asia Economy
Sponsors: Ministry of Economy and Finance, Financial Services Commission, Financial Supervisory Service, Korea Exchange, Korea Federation of Banks, Korea Financial Investment Association, Life Insurance Association, General Insurance Association, Credit Finance Association, Korea Federation of Savings Banks, Korea Securities Depository, Korea Securities Finance, Koscom
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