Building A Better Future With ESG

Committed to operating the World’s Greenest Airport, Airport Authority Hong Kong has integrated ESG principles into every aspect of its operations.

If any global flight hub was going to lay claim to being the World’s Greenest Airport, it was always going to be Hong Kong. Indeed, Airport Authority Hong Kong (AAHK), the statutory body with overall responsibility for Hong Kong International Airport (HKIA), has become renowned for its commitment to Environmental, Social and Governance (ESG) principles and its success in ensuring sustainability is at the very core of all its operations.

Since pledging to become the World’s Greenest Airport, back in 2012, a decade of transformation has seen AAHK look to make good on its aspiration across every applicable ESG metric. At the same time, underpinning it all has been its innovative approach to sustainable finance.

Environment: Carbon Reduction and Marine Enhancement

The centerpiece of AAHK’s drive to minimize its environmental impact has been its ambitious carbon reduction program, an initiative that has been enthusiastically taken on board by AAHK with the support and participation of its aviation-related business partners. Last year, this airport-wide alliance signed up to the 2050 HKIA Net Zero Carbon Pledge, an undertaking that aligns with the goals of the Paris Agreement and the concerns highlighted in the Intergovernmental Panel on Climate Change (IPCC) 1.5 degrees Celsius report, as well as the aims of several major global and local sustainability programs. This was further bolstered by the introduction of an upgraded HKIA Business Partners Carbon Support Program, a scheme designed to ensure all AAHK’s business partners face fewer obstacles during their own carbon reduction journey.

While recognizing its global responsibilities, AAHK has developed a carbon management plan which includes expanding the electric vehicle fleet from all airside saloon cars to other airside vehicles, electrifying and pooling of ground services equipment at the airport, and developing innovative energy management solutions such as the award-winning Weather Forecast for Air-conditioning Control System. AAHK has also been quick to address more local concerns. This has seen it take a lead in protecting and enhancing the marine environment, ecology and fishery resources off the coast of Hong Kong, and has also made HK$400 million (US$51 million) of funding available to local marine-ecology-oriented universities, research bodies and fishery organizations.

 “Whether you are traveling through HKIA or using our air cargo services, you can be confident that every effort is being made to minimize any adverse environmental impact.”

– Julian Lee

Social: Community Investments

Recognizing that a greener airport couldn’t be built without the support of the extended community, AAHK has invested heavily in winning over the hearts and minds of the community. Under the overall umbrella of its EXTRA MILE program, it has been running three tailored initiatives since 2018, to unleash the potential of working youth, non-Chinese speakers and airport staff with children.

The first of these, Working Holiday@Lantau, comprises a one-year work placement program at HKIA, complete with free accommodation and the opportunity for participants to trial career option at the airport. For non-Chinese speakers, The Pioneer offers a similar year-long work placement experience, with the aim of boosting inclusivity and, ultimately, creating a more multicultural workforce. Finally, for the children of HKIA employees, EduCare is an after-school care program geared to creating a healthy family environment and maximizing career opportunities for staff members.

Governance: Embedded Compliance and Multi-partner Participation

With effective, informed governance, essential for stewarding all environmental and related social initiatives, AAHK has put in place a multi-layered oversight strategy, which prioritizes coordinating internal activity and external stakeholder participation. Engaging a dual top-down/ bottom-up approach, the lead here has been taken by the Chief Executive Officer-chaired Sustainability Executive Taskforce, which liaises closely with the Internal Sustainability Committee, a body operating primarily at the General Manager level. External businesses are then represented by the HKIA Sustainability Leaders Group, which works closely with the in-house teams, ensuring that all parties are focusing on the common goals identified as part of the Net Zero Carbon by 2050 commitment and other aligned priorities.

Sustainable Finance: Green Bonds and Positive Environmental Evaluation

In many ways, the thread binding all AAHK’s ESG initiatives has been its commitment to embracing sustainable finance. Within the organization, the lead here has been taken by Julian Lee, Executive Director, Finance, AAHK.

While the AAHK has integrated the concept of sustainable finance into many of its operations, Lee is particularly proud of one relatively recent achievement. “Back in January 2022, we issued our first green bonds which were well-received, something we took as a sign we were moving in the right direction,” Lee says.

The US$1 billion five-year bonds were certified by the Hong Kong Quality Assurance Agency as complying with all the relevant global and local standards governing green and sustainable finance. According to Lee, the funds raised have been earmarked for a number of the AAHK’s key environmental projects, including decarbonization and green buildings.

In addition to the bonds issue, the Authority has notched up several other landmark achievements on the sustainable finance front. Most notably, it announced its first Sustainable Finance Framework in January this year with Sustainalytics as the Second Opinion Provider, before seeing its ESG performance positively evaluated by Standard & Poor, the world’s largest financial ratings agency, some six months later. Operating the first airport with its ESG rating publicized by S&P globally, AAHK was described by S&P as “with good capabilities to address its moderate yet growing environmental and social exposure, and focus on maintaining its capacity to navigate potential disruptions”.

Fly via the Greenest Airport

With HKIA expecting to welcome an increasing number of business and leisure travelers over the coming months, while air cargo volume is also set for growth, the environmental challenge is clearly set to be greater. This, however, is not something that Lee finds daunting.

Striking a distinctly upbeat note, he adds: “Our airport, as part of the aviation community, is committed to finding solutions to the environmental challenges—and it’s a commitment in evidence at every level and throughout every aspect of our operations. In terms of our allocation and utilization of resources, for instance, we are already one of the world’s most efficient airports.

“While there’s still a lot left to achieve, whether you are traveling through HKIA or using our air cargo services, you can be confident that every effort is being made to minimize any adverse environmental impact, considering our commitment in meeting our net zero targets.”

www.hongkongairport.com/en

With a new strategic vision embracing the pillars of Environmental, Social and Governance (ESG), retail-led mixed-use real estate developer Central Pattana is poised to transform the way we look at and relate to commercial and residential real estate.

Central Pattana, the property arm of Central Group that has a variety of diverse investments in Thailand and abroad, is Thailand’s leading retail and real estate player, and certainly among its most recognizable with the Central brand synonymous with shopping malls in the Kingdom. With a strong market capital of over 3 billion baht (US$83 million), the company’s portfolio is extensive. Over the next five years, Central Pattana is on course to own and manage some 50 shopping centers, 17 community malls, 70 residential projects, 13 office buildings and 37 hotels across more than 30 provinces in Thailand and overseas.

The team tasked with leading this charge is helmed by a woman—Wallaya Chirathivat, Director, President and CEO. She is guided by the company’s strategic vision—“Imagining better futures for all”—which comprises three simple but distinct pillars: Driving Synergies with Communities, Pioneering Better Lives, and Creating Purposeful Opportunities.

A Sense of Place

Throughout the company’s 40-year history, Central Pattana has been an inalienable part of Thailand and Thai lifestyles. It’s not uncommon for their retail-led, mixed-use developments, to be regarded as “Center of Life” in the communities they operate in.

“We view ourselves as a ‘Place Maker’,” says Chirathivat. “And we aim to improve quality of life across the country by creating transformative spaces. Spaces that are in sync with the needs, desires and aspirations of the community as well as the environment.”

A central component of this placemaking vision is to elevate the quality of life of the people, the communities and ultimately the planet, while striving simultaneously to become Thailand’s first mixed-use developer to reach net zero emissions by 2050.

Driving Synergies With Communities

Central Pattana has reinforced its efforts to promote local art and culture, generate local wealth and promote regional tourism by working closely with local SMEs. For example, over 100,000 square meters of retail space per year will be set aside for farmers and community members to sell their products and services.

Pioneering Better Lives

Central Pattana has taken the lead in defining sustainability benchmarks by focusing on two critical areas:
(i) Green Energy: Apart from solar cell and automation systems installed at all developments, Central Pattana has worked with partners to install over 400 EV charging stations at Central shopping centers in 2022, thereby creating the largest and mostextensive network of shopping mall-based charging stations in all of Thailand.

(ii) Wellness and Get-Togethers: Integration of well-being and sustainability-based design will be increased indoors and outdoors. Inclusive design will ensure access to facilities by all in the community.

Creating Purposeful Opportunities

As nurturing and connecting communities is a key component of its brand purpose, a Central Pattana Lead and Retail Academy has been formed to provide retail training opportunities and business-matching services within Thailand and internationally.

Thanks to a longstanding focus on sustainable development, Central Pattana has been the only Thai company in the real estate sector to be featured in the Dow Jones Sustainability World Index (DJSI World) for four consecutive years and in the DJSI Emerging Markets Index for eight years.

Central Retail continues to lead the charge for environmentally aware retail practices that reduce waste, cut carbon-based fuel use and enrich the quality of life across communities. The company is fully committed to “The Green and Sustainable Retail” movement and focused on becoming Thailand’s first Green and Sustainable Retail organization.

Central Retail Corporation (CRC) is one of the largest, specialist retail businesses in Asia with an extensive and diverse portfolio of market-leading brands under management. The company’s product and services portfolio runs across multiple categories and can be broadly divided into five segments: Food, Fashion, Hardline, Property, and Health & Wellness.

Well aware of the influence and potential impact a large retail business can have on the environment and society, CRC has spared no effort to ensure its responsibilities and commitment to the communities it serves reflect its core and longstanding values. The company’s sustainability commitment starts with embedding and instilling sustainable thinking within its ranks and then building on the highest standards of ESG practices across all levels of employees, and throughout the entire value chain of the business.

“It is Central Retail’s conviction to build a promising future for the generations to come by reinforcing its position as Thailand’s first green and sustainability-oriented retail establishment.”

– Yol Phokasub, CEO of CRC

Net Zero by 2050

“It is Central Retail’s conviction to build a promising future for the generations to come by reinforcing its position as Thailand’s first green and sustainability-oriented retail establishment,” says Yol Phokasub, CEO of CRC.

To this end, the company has set long-term goals to reach net zero by 2050 and developed short-term 2030 goals with a strategic initiative called ReNEW. ReNEW is an acronym comprising the four pillars of CRC’s sustainability strategy, which are:

1) Reduce greenhouse gases by 30%, through widespread deployment of solar-cell technology, energy-efficient refrigeration systems and phased transition to EV-based vehicles.

2) Navigate society wellbeing by promoting diversity, equity and opportunity for local communities by generating yearly incomes of THB 5.4 billion (US$145 million) through programs for farmers.

3) Eco-friendly packaging to be implemented 100% across the business. Central Retail has, since 2021, reduced the number of plastic bags it uses by 160 million bags.

4) Waste management and reduction of food waste by 30%; by ensuring unsold food still fit-for-consumption is redistributed to vulnerable communities and groups. Actual food waste is to be managed more effectively through composting and conversion into biogas for community use.

ReNEW will also see existing upcycling programs accelerated, such as the Journey to Zero: upcycling PET bottle initiative, which spurred upcycling through creative reuse of discarded plastics to create employment opportunities for local communities.

The company is committed to playing a defining role in the CRC Green & Sustainable Retail initiative–by diligently innovating new industry-wide benchmarks for reducing waste, applying creative upcycling and minimizing impact on the environment.

“We have placed long-term roadmaps that require consistent action and collaboration across all units and, more importantly, we intend to pass on this mission to the next generation,” says Yol Phokasub. “They will continue performing this key task and responsibility so as to ensure a promising and liveable future for generations to come.”

www.centralretail.com

Comprehensive and progressive decarbonization is steering PETRONAS’ mission to be a responsible and trusted energy solutions partner.

The call to address global warming around the world has made it imperative for industries, not just governments, to take a clear stand on climate action. PETRONAS has responded to this need for change while supporting regional economic value creation through the reliable supply of energy.

PETRONAS has been paving ways to reduce greenhouse gas (GHG) emissions from its hydrocarbon resources guided by aspirations to drag this down to net zero carbon emissions by 2050. In line with Malaysia’s decision to ratify the Paris Agreement in 2016 that deals with GHG emissions and climate mitigation, PETRONAS’ net zero carbon emissions pathway supports the country’s Nationally Determined Contributions and the Agreement’s goal to limit the rise in average global temperature to well below 2 degrees Celsius and as close as possible to 1.5 degrees Celsius.

As such, PETRONAS has taken progressive steps to decarbonize its operations by undertaking and consolidating climate action activities across the Group.

Tackling Carbon at Source

Decarbonization is central to PETRONAS’ emissions reduction strategy. Since the introduction of its carbon commitments ten years ago, the Group has reduced around 17.5 million tonnes of carbon dioxide equivalent (MtCO₂e) from its operations as at end 2021—an “equivalent to removing around 3.8 million gasoline-powered vehicles from the roads, using the United States Environmental Protection Agency Greenhouse Gas Equivalencies Calculator,” says Charlotte Wolff-Bye, PETRONAS Vice President and Chief Sustainability Officer.

Wolff-Bye, appointed mid-2021, has been busy with her team at the newly created Corporate Sustainability unit based at PETRONAS Twin Towers in Kuala Lumpur. The task of steering divisions and subsidiaries under the PETRONAS banner to chart the Group’s Net Zero Carbon Emissions by 2050 pathway falls on their hands.

Their immediate focus will be to reduce operational greenhouse gas emissions. To drive Scope 1 (direct) and Scope 2 (indirect) emissions reduction, PETRONAS aims to allocate 20% of the Group’s annual capital expenditure to finance decarbonization initiatives and renewable projects from 2022 to 2026. This will help the Group achieve GHG emissions reductions of 25% by 2030 from 2019 levels of 57.73 MtCO_₂e to reach 43.30 MtCO_₂e for groupwide operations, along with zero routine flaring and venting, and driving energy efficiency of existing facilities.

Methane Under Fire

According to the Intergovernmental Panel on Climate Change (IPCC) 6th Assessment Report, methane is 82.5 times more potent than carbon dioxide. Hence methane emissions are important to be addressed with urgency. “What gets measured, gets managed,” says Wolff-Bye. “So, we have set targets for reducing methane emissions from our Scope 1 and Scope 2 emissions, a 50% target to reduce methane from our global operations by 2025 compared to the 2019 levels, which is to escalate to 70% by 2030.”

Gas flaring, the burning of natural gas associated with oil extraction, releases carbon dioxide, methane and other air pollutants into the atmosphere. Gas flaring occurs during crude oil extraction when it is unable to be used or be re-injected into the reservoir due to regulation, economic, technical or other constraints.

Acknowledging this environmental impact, there has been strong momentum by PETRONAS in reducing and eliminating routine flaring and venting from its upstream operations, recovering flare gas and making improvements in compressor capacity. Amongst many initiatives taken, a vent-to-flare conversion at the Baronia BNV platform in Sarawak, initiated in 2010 and commissioned last year, saw the replacement of a new ignition system which translated to reduction of GHG emissions from the venting source by 78%.

Sending another strong commitment to climate action, PETRONAS endorsed the World Bank’s Zero Routine Flaring by 2030 initiative. What this means is that by 2030 there will be no routine flaring in new oil field developments. At existing sites within its operational control, routine flaring will also come to an end.

PETRONAS is a signatory member to the Oil and Gas Methane Partnership 2.0 and Methane Guiding Principles initiative. These memberships will enhance PETRONAS’ approach on methane emissions measurement, reporting and reduction. The Group will advocate sound policy and regulations while benefiting from the knowledge gained on effective methane management.

Carbon Capture and Storage

Preventing GHGs from entering the atmosphere is important in mitigating climate change. According to the Intergovernmental Panel on Climate Change (IPCC) Special Report on Carbon Dioxide Capture and Storage, carbon capture and storage (CCS) can lower overall mitigation costs and improve flexibility to effectively reduce GHG emissions. “Limiting global warming means preventing GHG emissions from occurring at the first instance, that is, at source,” Wolff- Bye explains. The company is pursuing CCS as a means of reducing emissions from its operations. The activity is expected to commence in 2026.

Partnership is vital to enabling such infrastructure. PETRONAS engages with partner organizations, including ExxonMobil to explore CCS opportunities and technology. Offshore locations in Malaysia are currently being assessed for suitability to store carbon.

But the journey to get there is not without challenges. For one, getting the right technologies to work together to capture and transport emissions is critical. All in all, there needs to be clear policy, regulation and accessible finance to help incentivize
energy efficiency, emissions reduction and carbon capture.

Voluntary Carbon Offsets

Engineered solutions aside, the company is leaning on the natural environment to clean up the air—the basis of voluntary carbon markets, which the Malaysia stock exchange will launch by year end. “It is imperative to support nature-based climate solutions in combating emissions,” says Wolff-Bye, stressing the need to conserve the forests and wetlands that sequester carbon dioxide as part of natural processes.

PETRONAS is defining the strategy and positioning on nature-based climate solutions. Of interest would be supporting carbon offset programs within Malaysia—in which its tropical rainforests have been identified as amongst the oldest in the world and are very rich in biological diversity. This could complete its inclusive decarbonization approaches as it strives to fulfil net zero carbon emissions progressively.

PETRONAS’ Partnering to Develop New Energy Solutions

Japan: A study of hydrogen supply chains with ENEOS Corporation. Also collaboration with JERA Co., Inc. on ammonia and hydrogen supply chains.
South Korea: Developing clean hydrogen supply chain with Samsung C&T Corporation.
Abu Dhabi: Solar and wind collaboration with Masdar.
Malaysia: Newly launched, wholly owned Gentari Sdn Bhd will accelerate PETRONAS’ renewables, hydrogen and green mobility portfolio within Malaysia, and beyond.

www.petronas.com/sustainability

CLA Global TS (formerly Nexia TS) will continue its mission to give back to society even as it rebrands as part of a global network.

Professional services firm CLA Global TS (formerly known as Nexia TS) has a long history of giving back to the community. When given an option during his National Service to either head back to camp or volunteer at a children’s home on a working Saturday, the firm’s co-founder, Group CEO & Chief Innovation Officer, Henry Tan, chose the latter.

Founded in 1993, CLA Global TS is an award-winning Asia-centered Business Advisor. An independent member firm of CLA Global Network, CLA Global TS provides a full spectrum of professional services including, but not limited to, Assurance & IPO Reporting, Tax, Risk Advisory, Valuation, Insolvency & Restructuring, Sustainability & Climate Change Advisory and more.

As a socially responsible firm, CLA Global TS believes in contributing to society at large in areas that align to the core and values of the firm. The firm’s Corporate Social Responsibility (CSR) efforts focus mainly on education but, over the years, has also extended to the environment and community welfare.

“As a socially responsible firm, we plan strategically to create winning opportunities for our people, our clients and most importantly, our communities. We do not see it as a program per se. It has to be something in the core and values of the firm,” says Tan.

“As a socially responsible firm, we plan strategically to create winning opportunities for our people, our clients and most importantly, our communities.”

– Henry Tan

Fostering a Spirit of Giving

CLA Global TS offers financial scholarships for needy students in various institutes of higher learning, in particular to support those pursuing the Accountancy degree. These scholarships also offer opportunities for internships, and potentially a career path with CLA Global TS upon graduation.

Beyond scholarships, CLA Global TS has been involved in numerous other CSR initiatives, including sponsoring the POSB PAssion Run for Kids since 2009. The funds raised at the event go to an education welfare fund to help less privileged primary school children.

Since 2008 the firm has also participated in the Boys’ Brigade Share-a-Gift project, while its staff regularly contribute food and household items to the less fortunate in Singapore. These collective efforts were recognized when CLA Global TS received the Champions of Good 2022 award earlier this year. Champions of Good is a national recognition program launched in 2017 to recognize exemplary organizations doing good in the community.

Through its various CSR initiatives, CLA Global TS also aims to promote a spirit of giving back to the community to its staff, as well as their family and friends. “As a professional firm, CLA Global TS not only has the responsibility to train staff members in the aspects of technical and professional skills, but at the same time instill the values of being socially responsible individuals by looking beyond themselves,” says Tan.

Guiding Businesses on ESG

As part of its comprehensive ESG offering, CLA Global TS works alongside organizations to help them reduce their carbon footprint. The firm also focuses on the social and governance aspects of ESG, as it balances the needs of people and regulators with that of the environment to promote ambitious, yet achievable, targets for the companies it works with.

As sustainability and financial standards overlap, CLA Global TS acts as a guide to clients on their journey towards good sustainability practices and risk management, which will, in turn, translate into long-term financial health and stability.

“By embracing sustainable business as part of our operations, we hope to make this the foundation of our values of our social responsibility and growth, as well as our role as a global citizen,” Tan states.

The Next Chapter

CLA Global TS’ recent rebranding not only kicked off a series of events to celebrate the firm’s 30th Anniversary in 2023, but also marked the next chapter in the firm’s ongoing mission to give back in the area of education.

In its latest effort, CLA Global TS is working with the Institute of Technical Education (ITE) College Central to develop a scholarship and training program for students in business studies. The program will include book prizes, scholarships to cover college fees, mentoring and management trainee programs.

Says Tan: “With the new scholarship program with ITE, we hope to help graduates in both monetary and non-monetary ways to gain skills they need to succeed, and hope to also identify talents to join us upon graduation and groom Singaporean talents who can contribute positively to the economy.”

JOINING A GLOBAL FAMILY

On November 1, 2022, Nexia TS unveiled its new brand name ‘CLA Global TS’ and joined CLA Global, a leading global organization comprising independent accounting and advisory firms, as the group’s independent network member in Asia, covering Southeast Asia and China.

CLA Global members share resources and methodologies, and allow staff from the entire network to move freely among member firms as part of a truly integrated service offering. Led by the same leaders with more than 30 years of professional experience, CLA Global TS will continue to provide assurance, taxation, accounting, and various advisory services from offices in Singapore, China and Malaysia.

Staying true to its ESG roots, CLA Global TS plans to play a pivotal role in developing the Sustainability Reporting and Advisory service standards within the CLA network. The firm’s Sustainability & Climate Change team has also branched out into advisory and compliance work by leveraging its experience in sustainability reporting. “We are truly honored to be the first independent network member to join the CLA Global network. We trust that with our pool of Asia-Centered Business Advisors, we will contribute greatly as the key gateway to Asia within an internally recognized accounting network,” says Henry Tan, Group CEO & Chief Innovation Officer, CLA Global TS.

At the rebranding launch event, Jen Leary, CEO, CLA said that the CLA Global Network brings together firms that can be more resilient in the face of headwinds. “There’s a lot of risks impacting our clients and people in our communities, so the best way to deal with this is to find like-minded firms that are willing to stand strong and work on behalf of those entities,” she said.

“That’s exactly why I’m so honored that CLA Global TS agreed to join the CLA Global Network. It makes us stronger from day one. What’s different about CLA Global Network is that we have firms in key economies that our clients need us to be in, and where we feel we can impact the communities in a positive way.”

www.cla-ts.com

Companies such as Home Credit are helping improve the lives of millions of people around the world by promoting financial inclusion.

Ensuring that everyone has access to affordable financial products and services is critical when it comes to tackling inequality globally. In many countries, however, a large portion of the population remains unbanked or underserved by the traditional financial system. This lack of access limits the opportunities of this group, trapping them in a cycle of poverty.

Financial inclusion—the process of providing financial services to those who are excluded from the formal financial sector—is key to breaking down barriers and helping all citizens participate in the formal economy. Beyond providing important financial services, such as savings, lending and insurance products, financial inclusion can also boost economic growth.

Indeed, the World Bank considers financial inclusion a key enabler to reduce extreme poverty and boost shared prosperity. It has also been identified as an enabler for seven of the United Nation’s 17 Sustainable Development Goals.

In Asia Pacific (APAC), financial inclusion is a particularly pressing concern as hundreds of millions of people in the region are unable to access basic banking services. As a result, this group is unable to save or invest their money, and is often forced to rely on expensive, unregulated informal financial services.

“Scaling financial inclusion is critical to support sustainable economic growth in the APAC region and globally. Particularly in the region, the digital economy is growing rapidly, and young, digital-native populations will drive the next generations of economic development,” says Jessica Renier, Managing Director of the Digital Finance Department, Institute of International Finance.

Renier notes that accelerating financial inclusion won’t have a “one-size-fits-all” solution for every jurisdiction. Rather, she argues, that any financial product designed to advance financial inclusion should target the true causes of the lack of access to the financial system in any given country or region.

“Financial literacy and empowerment for a better life are closely entwined and have long been key pillars of our ESG efforts.”

– Jean-Pascal Duvieusart, Chief Executive Officer of Home Credit Group

“In many cases this can be traced to lack of proof of identity, and in others it may be a structural bias that makes it difficult for certain groups to obtain a bank account,” Renier notes. “Emerging technologies and innovations in financial services need to be prepared to meet these challenges that will vary from place to place.”

Dedicated to Financial Inclusion

According to the World Bank, digital solutions can play a big role in fostering financial inclusion. For instance, digital money platforms that can be accessed via mobile devices can help to provide financial services to those living in remote areas. Meanwhile, digital financial literacy programs are key to helping people develop the skills they need to manage their money effectively.

One financial services provider that has been dedicated to financial inclusion is Home Credit, which offers consumer finance solutions through its responsive mobile application, bringing credit and other financial services to millions of individuals underserved by traditional financial services institutions.

Since its establishment in 1997, Home Credit has actively worked to provide a bridge to financial systems as part of its broader ESG (Environmental, Social and Governance) strategy. “Responsible lending and financial inclusion have always been at the heart of Home Credit’s approach and the value we create for our customers and partners,” says Jean-Pascal Duvieusart, Chief Executive Officer of Home Credit Group.

In recent years, the group has expanded its footprint far beyond its domestic market in the Czech Republic and now offers its services in six countries in Asia Pacific and Central Asia, including Indonesia, Vietnam, Philippines and India.

Delivering Innovative Financial Solutions

Over the course of its 25-year history, Home Credit has developed a track record of delivering a broad range of innovative financial products and services in a responsible way. This heritage is key to the company’s success in its stated mission to, “empower people to live the life they want now”.

In 2021, 23% of Home Credit’s customers were first-time borrowers who had never used formal financial services before. Furthermore, 44% of the firm’s consumer loans carried 0% interest due to partnerships with retailers and manufacturers.

Through these services, customers were able to safely and affordably finance a range of purchases, from two-wheelers and mobile devices to education for their children, and even healthcare solutions. To help its customers make more informed financial decisions, the company continues to develop digital platforms that better serve customers as their demands evolve.

Home Credit has also sought to plug the wide insurance coverage gap present in many of its markets by providing access to policies with the right coverage. This need for insurance has become more urgent in recent years as the pandemic drove many customers to boost the level of healthcare protection for their families.

Meanwhile, the company is ramping up its efforts to improve financial knowledge and skills at scale as it seeks to help reduce poverty and inequality. In 2021, Home Credit expanded its reach as part of this education effort by using gamification and digitalization to drive engagement, reaching a record 109 million people during the year.

“Financial literacy and empowerment for a better life are closely entwined and have long been key pillars of our ESG efforts. We offer accessible, responsible, and affordable products and services, while giving our customers the know-how to use them properly,” says Duvieusart.

Clearly, there are many advantages to expanding access to finance for all citizens. By working towards greater financial inclusion, organizations such as Home Credit help create a more inclusive economy, improving the lives of millions of people around the world.

“Bringing millions of people into the financial system who currently do not have access is a worthy endeavor and is critical for supporting sustainable economic growth around the world,” Renier says.