Singapore financial institution Vanda Global Capital has launched the Green Finance Indexing Programme on Sept 14.
The programme, which targets US$3 billion ($4.08 billion) worth of green projects over 10 years, seeks to increase the level of financial flows to sustainable development priorities.
“A key part of this is to better manage environmental and social risks, and take up opportunities that bring both a good rate of return and environmental benefit and deliver greater accountability,” says Vanda Global Capital in its release.
The programme will identify “purist and transitional” projects in Singapore and around the world that fit its proprietary green taxonomy matrix. Depending on the projects’ needs, the programme will also stratify and accelerate venture work projects to maturity via an “investors’ architecture of financial instruments”.
Furthermore, the company’s green financing platform will bring together work in stages and in multiple quantum divisions and closures.
This helps to prevent over-valuation or hyper-valuation in an inflationary and rising-interest-rates environment so that the companies and projects thrive and remain in business sustainably, says Vanda Global Capital.
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According to Low Wei Ling, CEO of Vanda Global Capital, the sequentialisation will include growth startups to larger companies.
“This is because when companies are at a growth stage, after having survived the initial startup years, with proper guidance, they will be nimbler and more flexible in embracing the principles of environmental social governance (ESG) and green finance”, she says.
In addition, the company and its partners will support companies towards harnessing digitalization on internet of things (IoT) and blockchain to achieve data integrity and quality.
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“A quantitative approach ensures the transparent monitoring and reporting of a company’s immediate and long-term performance, including the risk metrics to determine its suitability for investments and fulfilment of sustainable outcomes, such as ESG goals,” Low explains.
Vanda Global Capital will also work with ratings agencies to promulgate suitable projects ripe for significant capital raising.
“We know great things never came from comfort zones. What continues to drive us forward is our belief in empowering people today to build a better future for the next generation,” says Low.
