LOADING

Type to search

51% of Emerging Market Firms Tap Sustainable Finance as Decarbonization Targets Rise: KPMG Study

51% of Emerging Market Firms Tap Sustainable Finance as Decarbonization Targets Rise: KPMG Study

51% of Emerging Market Firms Tap Sustainable Finance as Decarbonization Targets Rise: KPMG Study
  • Sustainable finance on the rise: 51% of companies use sustainable finance, with green bonds leading at 53%.
  • Gaps in gender diversity targets: More companies disclose gender data, but few set diversity targets beyond gender.
  • Decarbonization lagging: Scope 3 emissions remain underreported, with 44% of companies not disclosing data.

The Shift Toward Sustainability

Emerging market companies are accelerating sustainability efforts, driven by financing trends, regulatory expectations, and climate commitments. A study of 104 firms across six sectors (Energy, TMT, Transport, Mining, Water & Waste, and Cross-Cutting) reveals key sustainability trends.

Sustainable Finance Adoption

51% of companies have embraced sustainable finance. Green bonds (53%) are the most utilized, followed by sustainability-linked bonds (30%) and loans (25%). The Water & Waste (75%) and Energy (74%) sectors lead in sustainability-linked finance, while Transport lags at 16%.

Companies are increasingly leveraging sustainable finance instruments to fund their transition efforts.”

Gender Equality & Inclusion

Most firms disclose gender-related data, but few set concrete diversity targets. Mining and Energy sectors lead in reporting, while TMT, Transport, and Water & Waste sectors have room for improvement.

“Inclusion should go beyond gender to address underserved groups and communities.”

Decarbonization & Nature-Based Solutions

Energy companies lead in setting comprehensive emissions targets, with 38% covering Scopes 1, 2, and 3. Transport firms are the most committed to carbon neutrality (42%), but overall, 44% of companies fail to report Scope 3 emissions.

Related Article: MAS Invests S$35 Million in Upskilling Singapore’s Financial Sector for Sustainable Finance

Standardizing Scope 3 metrics will enable better benchmarking and decision-making.”

Firms are also prioritizing biodiversity, conservation, and sustainable land management. Yet, adoption of nature-based disclosure standards is slow—only 10 out of 104 companies have adopted Taskforce on Nature-related Financial Disclosures (TNFD).

Community Benefit-Sharing

Among 25 energy and infrastructure companies analyzed:

  • 84% report education and skill-focused initiatives.
  • 48% focus on humanitarian support and environmental protection.
  • 44% disclose health-related projects.
  • 8% highlight climate resilience efforts.

Latin America and Africa see a focus on cultural heritage preservation, infrastructure, education, and healthcare improvements.

Looking Ahead

COP29 agreements will drive more climate financing, with funds set to triple to $300 billion annually by 2035. Multilateral development banks have also pledged $120 billion annually by 2030 to support climate initiatives in low- and middle-income countries.

To accelerate progress, companies must:

  • Improve Scope 3 emissions reporting.
  • Enhance transparency in gender diversity targets.
  • Expand biodiversity and nature-based solutions to unlock funding opportunities.

Companies that proactively integrate sustainability will secure stronger financial and operational resilience.

Follow ESG News on LinkedIn

Topics

Related Articles

LOADING

Type to search

Blog

Global Taskforce Sets Out Plan to Bridge $4 Trillion Sustainability Finance Gap for SMEs
EU Lawmakers Scale Back Sustainability Rules, Raising Thresholds for Corporate Reporting and Due Diligence
Schroders Achieves 100% Renewable Electricity Across Global Operations One Year Ahead of Schedule
Mercedes F1 Nears Net Zero Goal with 99% Biofuel Logistics Coverage Across Europe
Moeve Joins Avelia as First External SAF Supplier
Google to Invest €5 Billion in Belgium to Expand AI and Carbon-Free Infrastructure by 2027
Climate Fund Managers Closes $1.07 Billion Climate Adaptation Fund for Emerging Markets
Mexico Adopts 17 Climate-Aligned Legal Clauses to Advance Sustainable Law Frameworks
EU Launches $6.1M Initiative to Scale Sustainable Algae Farming and Blue Innovation Hubs
India Plans $77B Hydropower Expansion as Strategic Buffer to China’s Upstream Dams
US Pushes Back Against EU Plan to Cut Global Shipping Emissions
Siemens, Airbus Partner to Decarbonize Three UK Manufacturing Sites by 2030
INC Introduces First Global Sustainability Certification for Nut and Dried Fruit Industry
US Delays Wyoming Coal Lease Auction Following Weak Industry Interest in Montana
ESG News Week In Review: 3 October - 12 October
Worldly Acquires GoBlu to Build Unified Sustainability Data Ecosystem for Global Supply Chains
US Declines to Back World Bank Climate Statement Signed by 19 Directors
Highland Spring Partners with Altruistiq to Track Product-Level Carbon Footprints Across UK Operations
Base Power Secures $1B to scale U.S. Home Battery Network
Deep Sky to Build 500,000-Tonne Carbon Removal Facility in Canada
","session_id":"ep-sess-1760935932-UGuhmyvZ","page_url":"https:\/\/esgnews.com\/51-of-emerging-market-firms-tap-sustainable-finance-as-decarbonization-targets-rise-kpmg-study\/","post_id":"33965","tracking_enabled":"1","original_referrer":"","has_embedded_content":""}; /* ]]> */