CEAN Global - Climate & ESG Assurance Network

𝐈𝐅𝐑𝐒 𝐒𝟏 & 𝐒𝟐 𝐚𝐫𝐞 𝐧𝐨𝐰 𝐥𝐢𝐯𝐞 𝐟𝐨𝐫 𝐁𝐚𝐧𝐠𝐥𝐚𝐝𝐞𝐬𝐡’𝐬 𝐛𝐚𝐧𝐤𝐬
𝘍𝘳𝘰𝘮 2024, 𝘳𝘦𝘨𝘶𝘭𝘢𝘵𝘦𝘥 𝘣𝘢𝘯𝘬𝘴 𝘢𝘯𝘥 𝘍𝘐𝘴 𝘮𝘶𝘴𝘵 𝘳𝘦𝘱𝘰𝘳𝘵 𝘴𝘶𝘴𝘵𝘢𝘪𝘯𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘢𝘯𝘥 𝘤𝘭𝘪𝘮𝘢𝘵𝘦 𝘳𝘪𝘴𝘬𝘴 𝘶𝘯𝘥𝘦𝘳 𝘨𝘭𝘰𝘣𝘢𝘭 𝘐𝘚𝘚𝘉 𝘴𝘵𝘢𝘯𝘥𝘢𝘳𝘥𝘴.

Bangladesh has started its formal sustainability reporting journey by adopting the ISSB’s IFRS S1 and IFRS S2 standards for banks and financial institutions, effective from 1 January 2024. Under Bangladesh Bank’s guidelines, regulated banks and finance companies must now disclose material sustainability and climate-related risks and opportunities alongside their financial statements.

These requirements follow IFRS S1 (general sustainability-related financial disclosures) and IFRS S2 (climate-related disclosures) without local modifications, meaning Bangladesh is applying the global baseline as issued by the ISSB. Limited assurance on these disclosures is expected from the second year of reporting, signalling a clear shift toward investor-grade ESG information in the financial sector.

𝗦𝗼𝘂𝗿𝗰𝗲𝘀: 𝗕𝗮𝗻𝗴𝗹𝗮𝗱𝗲𝘀𝗵 𝗕𝗮𝗻𝗸 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗱𝗶𝘀𝗰𝗹𝗼𝘀𝘂𝗿𝗲 𝗴𝘂𝗶𝗱𝗲𝗹𝗶𝗻𝗲; 𝗜𝗔𝗦 𝗣𝗹𝘂𝘀 𝗷𝘂𝗿𝗶𝘀𝗱𝗶𝗰𝘁𝗶𝗼𝗻 𝗻𝗼𝘁𝗲; 𝗽𝗿𝗮𝗰𝘁𝗶𝘁𝗶𝗼𝗻𝗲𝗿 𝘂𝗽𝗱𝗮𝘁𝗲𝘀 𝗼𝗻 𝗕𝗮𝗻𝗴𝗹𝗮𝗱𝗲𝘀𝗵’𝘀 𝗜𝗦𝗦𝗕 𝗮𝗱𝗼𝗽𝘁𝗶𝗼𝗻

This World Environment Day, CEAN Global reaffirms its commitment to fostering sustainable corporate practices and robust climate governance. We believe that integrating rigorous ESG assurance today is the cornerstone of building a resilient and accountable economy for tomorrow. Let us work together to translate environmental stewardship into measurable, impactful corporate action.

May the blessings of Allah fill your life with happiness and open all the doors of success. CEAN Global wishes you and your family a beautiful Eid!

𝐑𝐌𝐁-𝐃𝐞𝐧𝐨𝐦𝐢𝐧𝐚𝐭𝐞𝐝 𝐆𝐫𝐞𝐞𝐧 𝐅𝐢𝐧𝐚𝐧𝐜𝐞: 𝐀 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐋𝐞𝐯𝐞𝐫 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐆𝐥𝐨𝐛𝐚𝐥 𝐒𝐨𝐮𝐭𝐡

Hong Kong alone accounted for 45% of Asia’s green bond issuance in 2024, underscoring its role as a regional hub, while Shanghai’s FTZ market continues to open for offshore RMB issuance, deepening cross-border liquidity channels.

These instruments offer tangible advantages: lower funding costs compared to USD bonds (even after hedging), alignment with Belt and Road Initiative financing needs, and growing credibility through frameworks like the Common Ground Taxonomy. Yet structural barriers persist. Foreign issuers face FX volatility challenges when converting RMB proceeds, high domestic AAA rating thresholds exclude many developing-country entities, stringent disclosure rules add complexity, and limited market depth in Dim Sum and FTZ segments constrains larger issuances. Compounding this, awareness and technical capacity gaps among Global South issuers, alongside scarce anchor investor participation, hinder market scalability.

The path forward is pragmatic. Partial guarantees from MDBs and philanthropic entities can de-risk early entrants, as seen in pilot programs like Huzhou’s green finance subsidies. Aligning taxonomies through tools like the MCGT ensures global credibility while meeting domestic eligibility. Liquidity can be bolstered via HKMA’s RMB Trade Financing Facility and triparty repo platforms that allow ESG-labelled bonds to serve as collateral. Critically, capacity building, issuer training on market practices, structuring, and regulatory compliance is non-negotiable for broadening participation.

When these elements converge, RMB GSS+ bonds cease to be a niche product and become a scalable channel for financing renewable energy, low-carbon infrastructure and just-transition projects across Africa, Asia and Latin America. For issuers in the Global South, this isn’t just about accessing capital, it’s about securing stable, cost-effective funding to drive the climate resilience and sustainable development their economies urgently need.

𝐁𝐚𝐧𝐠𝐥𝐚𝐝𝐞𝐬𝐡’𝐬 𝐮𝐩𝐜𝐨𝐦𝐢𝐧𝐠 𝐠𝐫𝐚𝐝𝐮𝐚𝐭𝐢𝐨𝐧 𝐟𝐫𝐨𝐦 𝐔𝐍 𝐋𝐃𝐂 𝐬𝐭𝐚𝐭𝐮𝐬 𝐢𝐧 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫 𝟐𝟎𝟐𝟔 𝐰𝐢𝐥𝐥 𝐞𝐧𝐝 𝐩𝐫𝐞𝐟𝐞𝐫𝐞𝐧𝐭𝐢𝐚𝐥 𝐭𝐫𝐚𝐝𝐞 𝐚𝐜𝐜𝐞𝐬𝐬 𝐚𝐧𝐝 𝐜𝐨𝐧𝐜𝐞𝐬𝐬𝐢𝐨𝐧𝐚𝐥 𝐟𝐢𝐧𝐚𝐧𝐜𝐞, making strong ESG performance essential to retain investor confidence. While the Bangladesh Securities and Exchange Commission now requires listed firms to report ESG and the

Bangladesh Bank-The Central Bank of Bangladesh has issued sustainability‑disclosure guidelines for banks, many companies still treat it as a marketing exercise and SMEs lack awareness. Social and governance gaps, such as, child labour, weak workplace safety and inconsistent labour‑law enforcement further undermine trust.

To reap the benefits, lower operational costs, reduced supply‑chain risk, and better worker‑consumer relationships, Bangladesh needs mandatory ESG reporting for large private firms, adoption of internationally comparable standards (GRI/SASB), targeted SME support, and a national ESG task force that aligns ESG with climate goals and industrial policy. Embedding ESG into core strategy, not just compliance, can turn today’s risks into tomorrow’s opportunities for a more resilient, inclusive economy.

𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐃𝐞𝐛𝐭 𝐎𝐮𝐭𝐥𝐨𝐨𝐤 𝟐𝟎𝟐𝟔: 𝐁𝐢𝐠𝐠𝐞𝐫 𝐏𝐨𝐮𝐫, 𝐂𝐡𝐚𝐧𝐠𝐢𝐧𝐠 𝐑𝐞𝐜𝐢𝐩𝐞

Think of global sustainable finance like a cocktail: 2026 will see a larger pour (issuance rebounding to ~$1.62 trillion) – but the ingredients keep shifting.

📈 𝐖𝐡𝐚𝐭’𝐬 𝐠𝐫𝐨𝐰𝐢𝐧𝐠:

𝗚𝗿𝗲𝗲𝗻 𝗯𝗼𝗻𝗱𝘀 & 𝗹𝗼𝗮𝗻𝘀 𝗱𝗿𝗶𝘃𝗶𝗻𝗴 𝗺𝗼𝗺𝗲𝗻𝘁𝘂𝗺 ($700bn + $255bn expected) – trusted for funding renewables, efficiency, and clean infrastructure.
𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆-linked loans rising to $160bn (flexible for corporates without green capex).
𝗔𝗣𝗔𝗖 & 𝗖𝗲𝗻𝘁𝗿𝗮𝗹/𝗘𝗮𝘀𝘁𝗲𝗿𝗻 𝗘𝘂𝗿𝗼𝗽𝗲 𝗯𝗼𝗼𝗺𝗶𝗻𝗴 – APAC alone could hit $190bn in sustainable debt, fueled by renewables and grid modernization.

⚠️ 𝐖𝐡𝐚𝐭’𝐬 𝐬𝐡𝐢𝐟𝐭𝐢𝐧𝐠:

𝗨𝗦 𝗶𝘀𝘀𝘂𝗮𝗻𝗰𝗲 𝗺𝘂𝘁𝗲𝗱 – policy swings and rolled-back incentives keeping corporates cautious.
𝗘𝗠𝗘𝗔 𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝘀𝗼𝗳𝘁𝗻𝗲𝘀𝘀 – strong investor demand for non-ESG debt weakening green incentives, though refinancing maturing bonds may boost 2026.
𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 - linked bonds (SLBs) losing steam where KPIs often miss core impacts, penalties too weak to drive change.

𝐖𝐡𝐲 𝐢𝐭 𝐦𝐚𝐭𝐭𝐞𝐫𝐬:

The market’s resilience hinges on transition finance (scaling in APAC via China/India frameworks) and green infrastructure – especially as AI/data centers surge demand for efficient power and grids. For issuers, the signal is clear: prioritize credible, project-backed green debt over weak KPI-linked instruments.

Despite policy headwinds, the long-term push toward decarbonization remains intact and the cocktail, while evolving, is still pouring.

Source: https://think.ing.com/articles/sustainable-debt-outlook-2026-higher-issuance-with-changing-compositions/

𝐊𝐞𝐧𝐲𝐚’𝐬 𝐄𝐒𝐆 𝐥𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞 𝐢𝐬 𝐬𝐡𝐢𝐟𝐭𝐢𝐧𝐠 𝐟𝐚𝐬𝐭, 𝐰𝐡𝐚𝐭 𝐰𝐚𝐬 𝐨𝐧𝐜𝐞 𝐯𝐨𝐥𝐮𝐧𝐭𝐚𝐫𝐲 𝐢𝐬 𝐛𝐞𝐜𝐨𝐦𝐢𝐧𝐠 𝐥𝐚𝐰.

🔹 Banks must now classify loans using the CBK’s Green Finance Taxonomy and disclose climate risks.
🔹 Listed companies are expected to align with IFRS Sustainability Disclosure Standards and GRI frameworks, ESG reporting is no longer a “nice‑to‑have” but a legal and investor requirement.
🔹 Carbon markets are gaining traction, with agribusiness pilots tying regenerative farming to verified carbon credits, while regulators draft rules to prevent greenwashing.
🔹 Investors worldwide are demanding sustainability‑linked disclosures; non‑compliance risks exclusion from global capital flows as ESG funds dominate institutional strategies.

Early adopters, like Equity Bank Kenya expanding green loans, or geothermal firms leveraging green bonds will not only meet obligations but also unlock international climate finance and sharpen their competitive edge.

Kenya’s green finance ecosystem is moving from fragmented policies to structured, enforceable frameworks. Now is the time to embed ESG into core strategy, not just compliance.

Source: https://shorturl.at/bPVzu

𝐄𝐒𝐆: 𝐋𝐞𝐯𝐞𝐫𝐚𝐠𝐢𝐧𝐠 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐟𝐨𝐫 𝐑𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐭 𝐆𝐫𝐨𝐰𝐭𝐡 𝐢𝐧 𝐁𝐚𝐧𝐠𝐥𝐚𝐝𝐞𝐬𝐡’𝐬 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐌𝐚𝐫𝐤𝐞𝐭

Bangladesh’s capital market has struggled to regain investor confidence since the 2010 crash, and foreign inflows remain modest amid frequent policy shifts and limited transparency. At the same time, ESG reporting is moving from a voluntary practice to a mandatory requirement in major exchanges worldwide from London and Frankfurt to Singapore and India, creating a clear incentive for markets that adopt credible sustainability disclosures.

For a country highly exposed to climate‑related hazards such as floods, cyclones and water scarcity, ESG offers a practical way to identify risks that conventional financial reporting often misses. By measuring carbon and water footprints, tracking workplace safety, and disclosing supply‑chain standards, companies can uncover vulnerabilities early and target investments that reduce both environmental impact and operating costs. Foreign investors increasingly expect such data in line with global frameworks like the ISSB or GRI, making ESG a gateway to sustainable finance pools that are already growing in Bangladesh.

Local leaders are already showing the path forward. WALTON Hi‑Tech, for example, cut its carbon footprint by 11.4 % and its water footprint by 10.7 %, recycled over half of its process wastewater and generated 13 MW of solar power, demonstrating that sustainability can be woven into daily operations and decision‑making. Square Pharmaceuticals PLC. Bangladesh publishes an annual ESG report on ethical grounds, noting that global‑pharma ambition demands such transparency. BRAC Bank, with more than a third of its shares held by foreign investors, has been disclosing ESG metrics for three years to meet those investors’ expectations.

𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 𝐫𝐞𝐦𝐚𝐢𝐧. Many investors still favour short‑term gains, a locally tailored ESG roadmap is lacking, firms often lack resources for deep decarbonisation or efficiency upgrades, and regulatory oversight is thin. Nevertheless, the Financial Reporting Council is working to adopt ISSB frameworks, and the Bangladesh Securities and Exchange Commission is revising the Corporate Governance Code to embed strong ESG provisions, steps that could shift ESG from a peripheral add‑on to a core market discipline.

In short, ESG is not merely a compliance cost; it is a risk‑management tool that can attract foreign capital, strengthen resilience, and support the SDGs. By measuring, verifying and acting on ESG data, Bangladeshi companies and regulators can turn today’s vulnerabilities into tomorrow’s opportunities.

𝐁𝐚𝐬𝐞𝐝 𝐨𝐧 𝐢𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐟𝐫𝐨𝐦 The Business Standard reporting and statements from BSEC, Bangladesh Bank-The Central Bank of Bangladesh, BRAC Bank PLC, WALTON Hi-tech and Square Pharmaceuticals PLC. Bangladesh

𝐊𝐞𝐧𝐲𝐚’𝐬 𝐄𝐒𝐆 𝐆𝐚𝐩: 𝐖𝐡𝐲 𝐁𝐨𝐥𝐝 𝐏𝐥𝐞𝐝𝐠𝐞𝐬 𝐍𝐞𝐞𝐝 𝐇𝐚𝐫𝐝 𝐃𝐚𝐭𝐚

Kenya’s corporate world is full of ambitious slogans, net‑zero by 2030 or 2050, strong governance scores, and flashy CSR projects. Yet beneath the headlines, the picture is mixed. The Capital Markets Authority reports that governance scores on the Nairobi Securities Exchange have risen to 79 %, but many annual reports still read like stories rather than spreadsheets: they talk about policies and intentions, not about the exact tons of carbon cut or the exact number of workers protected.

When it comes to climate, experts say a net‑zero claim only counts if a company first slashes the emissions it directly controls fuel burned in generators, electricity bought from the grid, and emissions from its own vehicles before it leans on carbon offsets. In practice, many Kenyan firms point to tree‑planting credits while diesel generators keep humming, making the pledge look more like a numbers game than a real cut‑back.

Social disclosures show a similar gap. Companies highlight community‑giving events and tree‑planting drives, but they rarely share concrete data on worker safety, fair wages, or how their supply chains treat people. Without those numbers, investors can’t tell whether a firm’s social risk is low or lurking just beneath the surface.

Governance is the glue that holds ESG together, yet independent verification of ESG data remains rare. Most sustainability claims are not checked by outside auditors using standards like ISAE 3000 or AA1000AS, so different rating agencies often give the same company wildly different scores. That disagreement creates uncertainty and as research elsewhere shows, can actually increase a company’s financial risk.

𝐓𝐡𝐞 𝐠𝐨𝐨𝐝 𝐧𝐞𝐰𝐬? The market is starting to reward real ESG performance. Banks and development lenders are tying loan terms to measurable climate and social metrics, and regulators are pushing to treat sustainability disclosures with the same rigor as financial reports.

𝐅𝐨𝐫 𝐊𝐞𝐧𝐲𝐚𝐧 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬, 𝐭𝐡𝐞 𝐰𝐚𝐲 𝐟𝐨𝐫𝐰𝐚𝐫𝐝 𝐢𝐬 𝐬𝐭𝐫𝐚𝐢𝐠𝐡𝐭𝐟𝐨𝐫𝐰𝐚𝐫𝐝:

𝐌𝐞𝐚𝐬𝐮𝐫𝐞 𝐟𝐢𝐫𝐬𝐭: Set up systems to track energy use, fuel consumption, water use, and workforce data.
𝐂𝐮𝐭 𝐝𝐞𝐞𝐩: Prioritize real reductions in operations (electrify fleets, shift to renewable power, improve industrial efficiency) before buying offsets.
𝐕𝐞𝐫𝐢𝐟𝐲: Bring in independent auditors to check the numbers; credible assurance builds investor trust.
𝐑𝐞𝐩𝐨𝐫𝐭 𝐩𝐥𝐚𝐢𝐧𝐥𝐲: Share simple, comparable metrics (tons CO₂ reduced, % of workers trained, number of grievances resolved) alongside any narrative.
𝐋𝐢𝐧𝐤 𝐭𝐨 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲: Make ESG part of core risk management, not a side‑project.

When companies follow these steps, their net‑zero pledges become more than hopeful headlines, they turn into verifiable progress that attracts capital, lowers costs, and strengthens resilience. Otherwise, the risk remains: ambitious promises on paper, with little change on the ground, and investors left guessing where the real value and risk lie.

Source: Ethical Business

At the workshop in Lagos, Nigeria, the answer was loud and clear: sustainability reporting is no longer just about compliance, it’s how organizations demonstrate resilience and attract investment!

CEAN Global was thrilled to be at the forefront of this conversation during the IFRS Sustainability Standards (ISSB) Capacity Building Workshop, hosted by the Impact Investors Foundation (IIF).

A major highlight for us was the technical session led by Suborna Barua, PhD. Representing CEAN, he took regulators, market operators, and financial stakeholders through the practical applications of the IFRS framework. From tackling governance and materiality to setting actionable targets, Suborna Barua, PhD highlighted exactly how businesses can use robust reporting, backed by technology and strict quality checks, to close the development financing gap.

It was fantastic to collaborate with so many brilliant minds driving real change in Africa, including delegates from the ISSB, SEC Nigeria, the Financial Reporting Council, and the Taskforce on Nature-related Financial Disclosures (TNFD).

Nigeria is setting a powerful example for the rest of the continent. As sustainability disclosures become a baseline expectation for investors worldwide, CEAN Global is ready to help organizations build the systems and capacity needed to thrive.

A massive thank you to Impact Investors Foundation (IIF), Dr Iheanyi Anyahara; and Dr Eberechi Weli for the opportunity! We are looking forward to the exciting work ahead.