Remarks by Ms Beate Trankmann at the 13th Hong Kong International Finance Forum

December 15, 2023

UNDP Resident Representative in China, Beate Trankmann, delivered a keynote speech virtually at the 13th Hong Kong International Finance Forum.

女士们，先生们，尊敬的各位嘉宾，大家早上好。

我谨代表联合国开发计划署向第十三届香港国际金融论坛的召开表示热烈祝贺。

Ladies and Gentlemen, esteemed guests,

Good morning,

On behalf of the United Nations Development Programme in China, it is a pleasure to speak at the 13th Hong Kong International Finance Forum.

Our world is on the brink of climate catastrophe.

According to a recent report from the United Nations Environment Programme,^[1] as of this November, 86 days in 2023 recorded temperatures exceeding 1.5°C above pre-industrial level averages. We are hurtling towards a future of nearly 3℃ of warming by the end of the century—double what the Paris Agreement commits to— which would expose a staggering 75% of the world's population to "life-threatening" conditions.^[2]

But what does a 3℃ rise mean for the business world?

According to Climate Policy Initiative, between 2025 and 2100 , if the world stays on this trajectory, it would result in a projected colossal loss of $2.3 quadrillion. By contrast, realizing the 1.5°C target would require only one fifth of this amount in financing.^[3]

Indeed, directing financing towards sustainable development can unlock significant growth. Globally, an estimated $10 trillion worth of annual investment opportunities could arise from the green transition, potentially creating as many as 395 million new jobs by 2030.^[4]

This is straightforward math – the business case has never been clearer. If we redesign financial markets to support the low-carbon transformation and prioritize the environment, we can benefit both people and the planet, and ensure sustained prosperity for all.

Encouragingly, many businesses around the world have already been catching on.

The Principles for Responsible Investment (PRI) signatories have reached 5,000 as of 2023.^[5] And globally, ESG assets are expected to surpass 33.9 trillion dollars by 2026, representing over one-fifth of total assets under management.^[6]

Yet, despite this progress, the proliferation of different ESG standards and the lack of consistency between them, often leads to confusion among companies regarding which standards to adopt, and also enables greenwashing – divorcing ESG claims from real-world impact.

To ensure that the financial market can be a credible force for good, the alignment of standards is critical, and this can be done most effectively by integrating the Sustainable Development Goals (SDGs) into current ESG practices.

The SDGs offer a comprehensive framework to end poverty, create inclusive societies and save the planet by 2030. They were adopted through international consensus by Member States at the UN General Assembly in 2015.

"Aligning business practices with the SDGs not only ensures a global approach to addressing challenges, but also facilitates credible measurement and reporting of impact, fostering trust and confidence among investors and stakeholders."

Covering economic, social, and environmental dimensions, the Goals, are supported by 169 specific targets and 232 indicators, providing a robust system for analyzing progress, backed by data and evidence.

As such, aligning business practices with the SDGs not only ensures a global approach to addressing challenges, but also facilitates credible measurement and reporting of impact, fostering trust and confidence among investors and stakeholders.

To this end, UNDP has developed the SDG Impact Standards, which help businesses and investors around the world embed sustainability into their management systems, moving beyond negative ESG risk screening to making real-world impact.

In China, we have tailored these standards to the local context and developed the SDG Finance Taxonomy, which was piloted by the New Development Bank in the issuance of a 5 billion RMB bond on China’s inter-bank market.

We’ve also used the Taxonomy to advise the National Association of Financial Market Institutional Investors (NAFMII) in rolling out its first pilot on social and sustainability bonds.

Building on the standards, to further help inform investment decisions, UNDP has developed the SDG Investors Map as a market intelligence tool – identifying hundreds of impactful, as well as bankable, opportunities across 40 countries.

In China, our maps leverage big data and AI to pinpoint sustainable investment opportunities across different provinces in four specific sectors: Agriculture, Health, Renewable Energy, and Circular Economy.

Moving forward, UNDP is committed to building on these endeavors, and further expanding our collaboration with the finance sector. Through strengthened partnerships, we can help repurpose the financial system and redirect resources to where they are needed most.

In closing, I want to thank the Hong Kong Ta Kung Wen Wei Media Group for the invitation to speak today.

With the COP28 climate summit having recently concluded in Dubai, it is critical for the world to maintain the momentum and take urgent, concrete actions to protect our planet.

Therefore, let us seize the strategic opportunity presented by this forum to advance dialogues and exchanges on sustainable finance. Your collective wisdom, insights, and actions will be invaluable as we navigate the path towards an inclusive, green, sustainable future for everyone, everywhere.

I wish you a successful event.

Thank you.

谢谢！

^[1] Emissions Gap Report 2023 | UNEP - UN Environment Programme

^[2] In-depth Q&A: The IPCC's sixth assessment on how climate change impacts the world - Carbon Brief

^[3] Global Landscape of Climate Finance 2023 - CPI (climatepolicyinitiative.org)

^[4] WEF_Scaling_Investments_in_Nature_2022.pdf (weforum.org)

^[5] pri_ar2023_smaller_file_8875.pdf (dwtyzx6upklss.cloudfront.net)

^[6] Asset and wealth management revolution 2022: Exponential expectations for ESG (pwc.com)