President says SL could lead South Asia in ESG 

HSBC Sri Lanka and Maldives CEO Mark Surgenor – Pix by Ruwan Walpola 

• Inaugurating Daily FT-Colombo Uni. MBAA annual ESG Summit, reiterates Sri Lanka’s commitment to achieving SDGs and Net Zero by 2040
• Reveals legislation for International University on Climate Change to be completed early next year
• HSBC CEO for Sri Lanka and Maldives Mark Surgenor says by 2030  40% to 50% of all corporate capital expenditure will be directed towards transition to lower carbon infrastructure

President Ranil Wickremesinghe yesterday said that Sri Lanka could lead South Asia in terms of Environment, Social and Governance (ESG) standards via greater public private partnership.

Speaking at the inauguration of ESG Summit organised by the Daily FT and Colombo University MBA Alumni Association with HSBC as Strategic Partner, the President also reiterated Sri Lanka’s commitment to achieving sustainable development goals and reaching net zero carbon emissions by 2040.

Wickremesinghe highlighted several rapid methods to achieve these objectives, including harnessing renewable energy, modernising agriculture, and addressing water shortages.

He emphasised that attracting global financial facilities through commercial investments is a key part of Sri Lanka’s strategy. He detailed plans to transform the plantation sector into agribusinesses, promote sustainable tourism, and enhance product improvement and digitisation.

The ESG Summit held under the theme “Sustainable Pathways for a Brighter Future,” at the Cinnamon Grand, featured presentations and panel discussions involving 15 experts in environment, social and governance. Guest of Honour HSBC CEO for Sri Lanka and Maldives Mark Surgenor delivered the keynote.

During the event, President Wickremesinghe presented the ESG Excellence Awards to micro, small, and medium-scale entrepreneurs, recognising their contributions to environmental, social, and governance initiatives.

Wickremesinghe commended the Daily FT and Colombo Uni. MBAA for promoting ESG. “It’s good because you have to learn how the world is changing, especially the private sector and commitment to economic, social, and governance. We have to push it further. We (Sri Lanka) are the best of all the countries in South Asia to do so,” President said.

He said steps have been taken to establish the International Climate Change University on 600 acres, with legislative work planned by early next year. “Sri Lanka is striving to meet sustainable development goals and achieve zero emissions by 2040 through renewable energy, modernising agriculture, and addressing water scarcity issues. To this end, attracting global financial facilities through commercial investments is key. The transformation from plantation businesses to agribusiness, promotion of sustainable tourism, and product improvement and digitisation are main objectives.

“All our investments must be commercial. Government can’t even handle it. It’s for us to make it attractive. We must have an economic framework, which is accepted by the world,” he said.

Additionally, the President also said four new technical universities are being established to support technical education and innovation,” the President emphasised.

HSBC Sri Lanka and Maldives CEO Mark Surgenor said climate change is real and despite contributing only 0.05% to global emissions, Sri Lanka should worry about as it directly impacts us as we are also a key part of Asia. 

“The future is heavily Asia. Asia is already 50% of world emissions. Asia has incomes and driving an export led economy. The world’s focus will be on sustainability, top to bottom of supply chains. We need to be ready for that. But globally, corporates around the world are ready to take notice. By 2030, our research indicates that 40% to 50% of all corporate capital expenditure will be directed towards transition to lower carbon infrastructure, vital to setting up the industries for the future,” Mark said. 

“The demand is already there. Just our own bank, HSBC, globally, between 2030 and 2022, we’ve provided over $ 200 billion in sustainable finance around the world, supporting the transition of many industries,” he said adding HSBC aims to align customer emissions and bank emissions to net zero by 2050 in alignment with the Paris Accord. 

He said HSBC has been in Sri Lanka for over 132 years and that comes with a responsibility. He said the Bank hopes to play a significant role in supporting customer transition in Sri Lanka to help safeguard the next 132 years. “We have sustainability expertise. We have globally connected businesses. We have an innovative mindset,” he added. 

Mark also said he recently visited a few of those experts – Codegen and Eco-spindles. “They are doing things for that agenda which nobody else in the world is doing. As a country, this presents opportunities for us, from developing and leveraging the myriad of sustainable power sources available to us in Sri Lanka, or leveraging our client tech capabilities throughout the world.

The Summit included a keynote by Presidential Adviser on Environment, Climate Change and Green Finance Dr. Ananda Mallawatantri who figured in a panel discussion involving Peradeniya University Faculty of Agriculture Senior Professor Buddhi Marambe and MAS Holdings Environmental Sustainability General Manager Dhanujie Jayapala. It was moderated by Daily FT Editor Nisthar Cassim.

The session on social involved a keynote by UNDP Sri Lanka Resident Representative Azusa Kubota whilst the panel included Brandix Managing Director Hasitha Premarathna with Oceanpick Ltd. Chairman Rizvi Zaheed as moderator.

The session on governance saw a keynote by NSB Chairman Dr. Harsha Cabral PC and a panel comprising University of Moratuwa Senior Professor Ajith de Alwis, Sustainable Energy Authority Chairman Eng. Ranjith Sepala, and SLYCAN Trust Research and Knowledge Management Director Dennis Mombauer. It was moderated by MBA Alumni Association Treasurer and Swisstek Director/CEO Dr. Tharindu Atapattu. The Summit concluded with a panel on sustainable financing with HSBC Asia Pacific Sustainability Head Sunil Veetil as the keynote speaker. Alliance Finance Company PLC Managing Director Romani De Silva, DIMO CFO/Director Suresh Goonerate, Teejay Lanka PLC Chief Operating Officer Salman Nishtar, and Colombo Stock Exchange CEO Rajeeva Bandaranaike spoke in the panel moderated by HSBC Communications Head Tharanga Gunasekera.

Silver sponsors of the Summit were A. Baur & Co. and LTL Holdings.