We were pleased to welcome a diverse panel of experts to discuss the role of finance in achieving climate goals and facilitating a fair transition, guided by Kate Brett, Global Intellectual Capital Leader for Sustainable Investment at Mercer.
Arnaud Cohen Stuart, Head of Business Ethics at ING, opened the discussion by addressing the complexities of defining the right transition pathway. He highlighted the need for science-based insights to help financial institutions map lending portfolios and establish sector-specific strategies. Stuart also stressed the importance of maintaining an open dialogue within banks to balance ambitious climate goals with energy security and affordability concerns.
Rafe Haneef, Group CEO of MBSB Bank Berhad, took a reflective stance, noting that while the past decade has been focused on diagnosing climate issues, progress has been slow. “We’ve spent 80 to 90 percent of our time understanding the problem, rather than solving it,” he stated, referring to this as “progressive procrastination.” Haneef called for increased investment from the Global North to ensure a just transition, particularly in Southeast Asia, where emissions and GDP per capita differ significantly from those of developed nations.
Lauran Halpin, Head of Impact Equities at Martin Currie, highlighted the need to incorporate sustainability into investment processes. She emphasised the importance of creating measurable, intentional impact through active engagement with companies. Halpin underscored how impact investing can not only drive large-scale change but also generate returns for clients, making it a critical part of the investment case for climate action.
Arslan Iqbal, Chief Risk Officer at The Bank of Punjab, shared insights into Pakistan’s green financing efforts, including the launch of the country’s first social impact bond, subsidised financing for solar energy, and regulatory frameworks to support environmental and social risk management. Iqbal’s examples demonstrated how emerging markets can contribute to the global transition through targeted financial initiatives.
Throughout the discussion, the panel touched on the barriers financial institutions face in the transition, including legal hurdles, risk perceptions, and the pricing of sustainable products. They agreed that collaboration and open dialogue across industries are key to overcoming these challenges. The panel also stressed the importance of remaining vocal in the public narrative, ensuring that finance continues to play a central role in driving progress and experimentation in addressing climate change.
The discussion underscored the urgency of action and the need for finance to be at the forefront of the climate transition, providing both leadership and capital to support a fair and sustainable future.