Manila Bulletin
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Greener economy: Poe-Llamanzares calls for sustainable investments in Singapore forum
Philippines
National
Greener economy: Poe-Llamanzares calls for sustainable investments in Singapore forum
Greener economy: Poe-Llamanzares calls for sustainable investments in Singapore forum
Published Jul 31, 2023 10:32 am
Sustainability advocate and philanthropist Brian Poe-Llamanzares has pushed for the remodeling of business strategies that would factor in environment protection as he pitched the Philippines to foreign investors during a forum of business leaders in Singapore.
In his speech during the "Southeast Asia Investment Forum” held at the Hon Sui Sen Memorial Library on July 29, Poe-Llamanzares emphatically discussed the critical steps to ensure better and sustainable investments in the Philippines.
Sustainability advocate and philanthropist Brian Poe-Llamanzares discusses the importance of business models that focus on Environmental, Social, and Corporate Governance (ESG) during the "Southeast Asia Investment Forum” in Singapore.
Drawing from his experience, he emphasized the importance of due diligence as he urged investors who are exploring investment prospects and challenges in Southeast Asia to delve beyond the numbers on traditional financial reports.
“The balance sheet, income statement, and cash flow statement may be essential but they fall short of revealing a company's environmental cost - its carbon footprint,” said Poe-Llamanzares.
"These reports do not reveal a company’s carbon footprint. Financial reports can reveal the cost of income, but not a company’s environmental cost. They can reveal the efficiency of cash flow. But not how quickly we drain our rivers, nor how efficiently we pollute our seas," he added.
Call for ESG
Poe-Llamanzares then discussed the importance of focusing business models on Environmental, Social, and Corporate Governance (ESG) amid the current issues on climate crisis.
According to the Global Sustainable Investing Alliance (GSIA), corporate spending on ESG reached a staggering $35.3 trillion in 2020, projected to soar to $33.9 trillion in global institutional ESG investing by 2026.
A separate report by Moore Global, on the other hand, indicated that spending on ESG boosts revenue by 9.7 percent and profit by 9.1 percent.
"Greening our companies brings in green dollars," said Poe-Llamanzares as he highlighted the positive impact of ESG on revenue and profit—which was also discussed in his book "A Sustainable Future”.
Focus: Philippines
Poe-Llamanzares then turned his attention to the Philippines, its vibrant economy, and its eagerness to embrace sustainable growth despite the country's rapidly growing population and increasing demand for water, food, and electricity.
The GDP of P19.94 Trillion in 2022 reflects the nation's ambitions to expand and green its economy. Household consumption, accounting for 70 percent of the GDP, and Gross Capital Formation, investing in construction and durable equipment, play pivotal roles in driving economic growth.
To achieve a greener economy, Poe-Llamanzares shared that the Philippines is embracing the ESG revolution through strategic steps like loosening restrictions in laws like the Retail Trade Liberalization Act, the Foreign Investments Act, and the Public Service Act fosters investment growth.
He added that the revised implementing rules and regulations of the Renewable Energy Act demonstrate the nation's commitment to increasing renewable energy's share in its energy mix to 35 percent by 2030 and 50 percent by 2040.
According to Poe-Llamanzares, the Philippines has also made strides in green financing, issuing sustainability-related bonds and private banks offering green and sustainable loans.
“As the Philippines moves towards a Water-Energy-Food nexus, investments in recycling gray water, utilizing rainwater, adopting energy-efficient technology, electric vehicles, and sustainable agriculture will also pave the way for a greener future,” he said.
“Investing in ESG is not just about ticking boxes, but it's an investment in a better world. It is an investment in the future we want to leave behind for our children and the generations to come. Together, we can unlock the potential of sustainable growth and make a positive impact on both business and the world,” Poe-Llamanzares added.
Shedding light on ESG
The "Southeast Asia Investment Forum" successfully provided a platform for Poe-Llamanzares to shed light on the pressing need for sustainable investing and its potential impact on the future of the region's economy.
The forum's participants left with a renewed sense of responsibility and awareness of the importance of incorporating ESG principles into their investment strategies.
"I would like to thank the National University of Singapore and the Mandarin Alumni Association for this invitation. This is an amazing opportunity for the Philippines and myself. I hope that my remarks will attract investors and connect sustainability warriors in Asia to the Philippines," he said.
Sustainability advocate and philanthropist Brian Poe-Llamanzares discusses the importance of business models that focus on Environmental, Social, and Corporate Governance (ESG) during the "Southeast Asia Investment Forum” in Singapore.
Drawing from his experience, he emphasized the importance of due diligence as he urged investors who are exploring investment prospects and challenges in Southeast Asia to delve beyond the numbers on traditional financial reports.
“The balance sheet, income statement, and cash flow statement may be essential but they fall short of revealing a company's environmental cost - its carbon footprint,” said Poe-Llamanzares.
"These reports do not reveal a company’s carbon footprint. Financial reports can reveal the cost of income, but not a company’s environmental cost. They can reveal the efficiency of cash flow. But not how quickly we drain our rivers, nor how efficiently we pollute our seas," he added.
Call for ESG
Poe-Llamanzares then discussed the importance of focusing business models on Environmental, Social, and Corporate Governance (ESG) amid the current issues on climate crisis.
According to the Global Sustainable Investing Alliance (GSIA), corporate spending on ESG reached a staggering $35.3 trillion in 2020, projected to soar to $33.9 trillion in global institutional ESG investing by 2026.
A separate report by Moore Global, on the other hand, indicated that spending on ESG boosts revenue by 9.7 percent and profit by 9.1 percent.
"Greening our companies brings in green dollars," said Poe-Llamanzares as he highlighted the positive impact of ESG on revenue and profit—which was also discussed in his book "A Sustainable Future”.
Focus: Philippines
Poe-Llamanzares then turned his attention to the Philippines, its vibrant economy, and its eagerness to embrace sustainable growth despite the country's rapidly growing population and increasing demand for water, food, and electricity.
The GDP of P19.94 Trillion in 2022 reflects the nation's ambitions to expand and green its economy. Household consumption, accounting for 70 percent of the GDP, and Gross Capital Formation, investing in construction and durable equipment, play pivotal roles in driving economic growth.
To achieve a greener economy, Poe-Llamanzares shared that the Philippines is embracing the ESG revolution through strategic steps like loosening restrictions in laws like the Retail Trade Liberalization Act, the Foreign Investments Act, and the Public Service Act fosters investment growth.
He added that the revised implementing rules and regulations of the Renewable Energy Act demonstrate the nation's commitment to increasing renewable energy's share in its energy mix to 35 percent by 2030 and 50 percent by 2040.
According to Poe-Llamanzares, the Philippines has also made strides in green financing, issuing sustainability-related bonds and private banks offering green and sustainable loans.
“As the Philippines moves towards a Water-Energy-Food nexus, investments in recycling gray water, utilizing rainwater, adopting energy-efficient technology, electric vehicles, and sustainable agriculture will also pave the way for a greener future,” he said.
“Investing in ESG is not just about ticking boxes, but it's an investment in a better world. It is an investment in the future we want to leave behind for our children and the generations to come. Together, we can unlock the potential of sustainable growth and make a positive impact on both business and the world,” Poe-Llamanzares added.
Shedding light on ESG
The "Southeast Asia Investment Forum" successfully provided a platform for Poe-Llamanzares to shed light on the pressing need for sustainable investing and its potential impact on the future of the region's economy.
The forum's participants left with a renewed sense of responsibility and awareness of the importance of incorporating ESG principles into their investment strategies.
"I would like to thank the National University of Singapore and the Mandarin Alumni Association for this invitation. This is an amazing opportunity for the Philippines and myself. I hope that my remarks will attract investors and connect sustainability warriors in Asia to the Philippines," he said.