'Good green practice key to sustainable business'

Source From (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/rup05aa/Article/

Published: Monday July 06, 2012

KARLSRUHE (Germany): Good environmental governance is key to business sustainability, said Credit Guarantee Corporation Malaysia Bhd (CGC) managing director Datuk Wan Azhar Wan Ahmad.

The banking and finance industry in most countries has so far remained unaffected by the so-called "green movement". 


"But the environment has changed and they are now confronted with global climate change issues," he said in his keynote address at the Second Global Sustainable Finance Conference here yesterday.

He was speaking in his capacity as the chairman of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) and World Federation of Development Finance Institutions (WFDFI).


Previously, financial institutions found nothing wrong in underwriting millions of dollars for irresponsible mining, illegal logging and other commercial operations that rapidly denude forests, deplete water resources, or pollute rivers.

 However, they have now started paying attention to environmental issues, Wan Azhar said.

Along with governments, civil societies and business organisations, banks and financial institutions have realised that protecting the environment should also be their business, he said.

On Malaysia, Wan Azhar said that the government had also established a US$500 million (RM1.6 billion) fund to provide soft loans to companies that supply and utilise green technology and as a sign of commitment, CGC provides an interest subsidy and a guarantee cover of 60 per cent on the financing amount.