ACTIVITY TITLE
Fair Finance Asia Phase 2
Fair Finance Asia Phase 2
Reported by
Sweden SE-0 Government
ACTIVITY SCOPE COLLABORATION TYPE AID TYPE FINANCE TYPE FLOW TYPE TIED STATUS HIERARCHY
ODA 10 1
Planned start date 2022-11-10
Planned end date 2028-11-30
Actual start date 2022-11-10
activity status: Implementation
The activity is currently being implemented
WHO'S INVOLVED ( 2 )
PARTICIPATING ORG REFERENCE ROLE TYPE
Sweden
REF SE-0
Funding Government
Swedish International Development Cooperation Agency
REF SE-6
Extending Government
General
Fair Finance Asia (FFA) is a regional network of Asian CSOs committed to ensure that financial institutions' funding decisions respect the social and environmental well-being of local communities. It is managed by Oxfam Novib and based on the Fair Finance Guide International (FFGI) Methodology seeking to influence financial institutions to adhere to ESG (Environmental, Sustainability and Governance) criteria in their investments. The overarching goal is that banks operating at national and regional level contribute to positive outcomes for people in Asia through their financing and investments while reducing negative impacts on the climate, environment, human rights and gender equality. The first phase of the program, 2018 - 2022, included eight countries, Thailand, Indonesia, Philippines, India, Vietnam, Cambodia, Pakistan and Japan. The reason for including Japan is that many Japanese banks invest in countries in Asia. Based on the positive results from phase 1, as well as the fact that FFA is in line with the priorities of the new regional strategy 2022 - 2026, Sida has decided to support a second phase. It covers five years and includes expansion to five new countries (Malaysia, Bangladesh, Lao PDR, Singapore and South Korea) and the regional influencing will focus two main themes; Just Energy Transition and Gender Lens Financing. The program has four result areas; 1) Financial institutions (FI) operating across the region increasingly adopt or improve sustainable finance policies, practices, and public disclosure. 2) Regulators and governments increase independent monitoring of FI policy, practice and accountability and transparency, and improve the regulation of FIs, 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) Strong and resilient civil society across the region effectively influences the sustainable finance agenda across the region, integrating a gender lens and community voice. Other actors have increased awareness and take increased action to influence the sustainable finance agenda. More information is available on the website: www.fairfinanceasia.org.
Fair Finance Asia (FFA) är del av det globala nätverket Fair Finance International (FFI) och har som syfte att öka andelen hållbara investeringar i Asien. Programmet genomförs av Oxfam Novib i samarbete med en rad nationella och regionala organisationer och bygger på Fair Finance Guide International (FFGI) metodik. En metodik som utifrån användandet av ESG-kriterier (Environmental, Sustainability and Governance) försöker påverka banker och andra aktörer att investera mer hållbart. Programmets övergripande mål är att banker som verkar på nationell och regional nivå bidrar till positiva resultat för människor i Asien genom sin finansiering och investeringar samtidigt som de minskar negativa effekter på klimatet, miljön, mänskliga rättigheter och jämställdhet. Den första fasen av programmet, 2018 - 2022, omfattade åtta länder, Thailand, Indonesien, Filippinerna, Indien, Vietnam, Kambodja, Pakistan och Japan. Anledningen till att Japan ingår är att många japanska banker investerar i Asien. Baserat på de positiva resultaten från fas 1, samt att FFA ligger i linje med den nya regionala strategin 2022 - 2026, har Sida beslutat att stödja en andra fas. Programmet utökas till fem nya länder (Malaysia, Bangladesh, Laos PDR, Singapore och Sydkorea) och fokuseras särskilt på två teman; Just Transition och Gender Lens Financing. Mer information: www.fairfinanceasia.org.
Objectives
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.
recipient country ( 10 )
IndonesiaID
8
Philippines (the)PH
7
Viet NamVN
7
ThailandTH
6
IndiaIN
5
CambodiaKH
4
PakistanPK
4
BangladeshBD
3
Lao People's Democratic Republic (the)LA
3
MalaysiaMY
1
recipient region ( 1 )
OECD DAC ( 1 )
Supra-national regions according to OECD DAC CRS recipient codes http://reference.iatistandard.org/codelists/Region/
Asia, regional798
52
sector ( 5 )
OECD DAC CRS 5 digit1( 4 )
The sector reported corresponds to an OECD DAC CRS 5-digit purpose code http://reference.iatistandard.org/codelists/Sector/
Education/training in banking and financial services24081
25
Financial policy and administrative management24010
25
Formal sector financial intermediaries24030
25
Informal/semi-formal financial intermediaries24040
25
GLOSSARY
Education/training in banking and financial servicesNo description provided
Financial policy and administrative managementFinance sector policy, planning and programmes; institution capacity building and advice; financial markets and systems.
Formal sector financial intermediariesAll formal sector financial intermediaries; credit lines; insurance, leasing, venture capital, etc. (except when focused on only one sector).
Informal/semi-formal financial intermediariesMicro credit, savings and credit co-operatives etc.
OECD DAC CRS 3 digit2( 1 )
The sector reported corresponds to an OECD DAC CRS 3-digit purpose code http://reference.iatistandard.org/codelists/SectorCategory/
Banking & Financial Services240
100
GLOSSARY
Banking & Financial ServicesNo description provided
result( 1 )
outcome( 1 )
GLOSSARY
OutcomeResults of the activity that produce an effect on the overall communities or issues you serve. For example lower rate of infection after a vaccination programme.
Outcome
indicator( 1 )
Results achieved
Uppnådda resultat
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.
INDICATOR
Not applicable
No indicator available - only a description of the activity results is published
FACET BASELINE TARGET ACTUAL % PERIOD
Qualitative Qualitative
Swedish International Development Cooperation Agency
+46 8 698 50 00
Box 2025, 174 02 Sundbyberg, Sweden