Investing in environmental sustainability in forum debate

Prof. Carlos Noronha

The Macau Institute for Corporate Social Responsibility in Greater China (MICSRGC) is hosting a forum on Innovative & Sustainable Finance & Environmental, Social and Governance (ESG) tomorrow.

The forum will explore the role of innovative sustainable financing methods and new concepts to create an enabling investment environment in line with global sustainability development.

Two prominent figures in finance and accounting as well as ESG product strategy will be among the keynote speakers.

Jill Atkins is a world-renowned finance and accounting professor from Cardiff University who has been published widely in the area of sustainability and advocates for an extinction accounting framework.

Martina Macpherson is Head of ESG Product Strategy and Management at SIX (the Swiss and Spanish Stock Exchanges Group) and advisor to several high-level organizations in the UK and Europe.

Prof. Carlos Noronha, a founder and vice president of the Administrative Council of the MICSRGC and one of the event panelists, told the Times, “The focus is mainly on sustainability, biodiversity, and ‘extinction’ accounting and finance. The idea is that we can address climate change and sustainability problems that have resulted in many animal and plant species going extinct through what is known as ‘extinction’ accounting or ‘extinction’ finance.”

“Keynote speaker Martina McPherson will be talking about extinction bonds as a way to help with conservation and protection to prevent certain species from going extinct through various financing methods,” he said.

“I think this is a key selling point for the forum because, in Macau, people may be more familiar with investment in bonds. The point here is that we are trying to bring something very new [about bonds], which is about extinction accounting and the so-called ‘nature credit’.”

“In simpler words, whenever a company does something good for the environment or biodiversity, they can collect a credit certificate that operates as a trading instrument.”

“This is conceptually similar to ‘carbon accounting’ and ‘carbon trading’, which generates ‘carbon credits’ – we find people are more familiar with this concept.”

Noronha noted that in Macau, people are familiar with the government retrieving unused land plots for future development.

But repurposed land plots have historically been used to construct social housing or other facilities.

“What is never considered is the possibility of giving it to our non-human stakeholders for rewilding so it can return to its original form.”

He noted that through this innovative system, “people [and corporations] can invest in rewilding projects and can invest in related activities.”

Noronha said the different topics are intertwined. To undertake these projects and new methods of investment, there is a need for regulatory frameworks and the ability to conduct assessments.

He said that while such systems and regulations are already common in some countries and regions, they are new to Macau. As such, the association is seeking to bring knowledgeable speakers and experts in the field to this forum in Macau.

The forum will take place at the Grand Hall, Inspiration Building of the Mong-Há Campus of the Macau University of Tourism.