Fair Finance Asia Phase 2

In 2023, two new country coalitions took shape under the programme: FFA Bangladesh and FFA Lao PDR. While not a result in strict terms, this should still be noted as an achievement and an important milestone for the continuation of the programme. 64 positive policy changes were recorded by the programme in 2023, as a result of successful advocacy by the Executive Team and FFA coalitions in participating countries (Bangladesh, Cambodia, Lao PDR, Indonesia, Japan, Pakistan, Philippines, Thailand and Vietnam). As an example, Bangkok Bank (Thailand) has now taken on the inclusion of climate risks in the screening process of large project finance developments, public disclosure of its debt collection policy and names of affiliated debt collectors. Thai Military Bank has implemented grievance mechanisms for communities and individuals impacted by activities that receive financial support from the bank. In Vietnam, Techombank has disclosed its first exclusion list and Agribank published its first sustainability report, disclosing their Environmental Social and Governance (ESG) commitment. Effective engagement with financial institutions, policymakers, regulators and regional stakeholders has resulted in increased adoption of international sustainable finance principles and standards layed out in the Fair Finance Guide International Methodology. The policy changes were reflected in annual reports by banks and new guidelines that align with environmental, social and governance considerations in financial due diligence. All these changes support the infrastructure for more sustainable financing in the region. Further to this end, in 2023, FFA also focused on capacity building. At least 100 CSOs and national and regional financial sector stakeholders (financial institutions and regulators) were equipped with knowledge and skills to better track sustainability progress and commitments and to integrate sustainability into their investment and lending decisions. This ultimately also serves the objective to accelerate a broader strategic shift towards sustainable finance practices in Asia. On the research and knowledge sharing side, a total of 28 products and publications were realized in 2023, focusing on issues such as climate change, gender equality, transition minerals, human rights and just energy transition. Target audiences for these products included CSOs, financial institutions, regulators and governments, intergovernmental platforms such as ASEAN and multilateral development banks. It is important to note the emphasis by FFA put on how these knowledge products are disseminated and put to use. The engagement in stakeholder dialogue and facilitation of crosssector dialogue is a strenght of the programme and an important reason to why this researchrelated work is important for the whole of the programme. This also includes engagement of additional programme stakeholders such as media and academic institutions. Outreach and awareness raising are central elements in implementation, which are also closely linked to the production and dissemination of knowledge products. Fair Finance Asia has become a significant actor in the sustainable finance landscape in Asia. The Executive Team (and country coalitions) often participate in relevant foras and discussions around the role of finance and private sector in safeguarding human rights and environmental sustainability, such as the Annual Meeting of the Asian Development Bank.

The expected impact of the intervention is that: Financial institutions operating across Asia increasingly accelerate positive outcomes for communities and the environment through their financing and investments, while reducing negative impacts on the climate, environment, human rights, inclusion, gender equality, food security, and land rights. The intervention has five result areas and the following objectives... 1) Financial institutions operating across the region increasingly adopt or improve sustainable finance policies, practices and public disclosure. 2) Regulators and governments increase independent monitoring of financial institution policy, practice, accountability and transparency, and improve the regulation of financial institutions, including through mandatory regulation. 3) Regional financial sector actors take increasing actions to require and enforce improved standards for FIs policies, practices, accountability and transparency. 4) Stronger and resilient civil society across the region effectively influences the sustainable finance agenda, integrating a gender lens and community voice. 5) Other stakeholders (intermediary stakeholders) have increased awareness and taken more action to influence the sustainable finance agenda.