EY releases joint survey with HKTDC and thought leadership report at AFF 2025

As the exclusive Knowledge Partner of the Asian Financial Forum (AFF), EY Greater China Region (EY) launches two reports at the AFF 2025 – the AFF 2025 Joint Hong Kong Trade Development Council (HKTDC) and EY Survey “From ambition to action: understanding ESG imperatives” and the EY thought leadership report “Beyond borders: capturing growth in the dynamic cross-border payments market”.

From ambition to action: understanding ESG imperatives

HKTDC and EY releases the joint survey “From ambition to action: understanding ESG imperatives” on the first day of AFF 2025. It captures the perspectives and practices of corporates and investors in Asia as they navigate through the evolving journey in sustainability reporting, sustainable financing and climate transition readiness.

Jack Chan, EY China Chairman, EY Greater China Regional Managing Partner, says at the presentation of the joint survey on the first day of the AFF: “The research findings shine light into evolving perspectives and practices of corporations and investors in navigating sustainability-related issues, particularly in sustainability reporting, sustainable financing and climate transition readiness. The survey revealed that more companies and investors are considering sustainability in their operations, yet barriers are still present due to lack of clearly defined frameworks and lack of available resources. Considering the observations, the survey also provides actionable insights for any corporations intended to move from ambition to action in their sustainability journey.”

Key survey insights
Cautious optimism in achieving sustainability targets

• Only 44% of corporates believe they are highly likely to achieve their sustainability goals.

Robust transition planning required

• 54% of investors hold a neutral rating on portfolio companies’ transition plan, suggesting that many investors may not possess the necessary capability to evaluate and comment on corporates’ transition plans effectively.
• Investors are still in the process of forming an informed opinion on assessing the transition plans, while corporates face urgent needs for climate transition but lack robust and reliable data to understand their environmental impacts.

Challenges in green investment funding

• Majority of corporates and investors struggle to realize the value of green investment funding.
• Only 21% of corporate respondents consider green investment funding effective in meeting their company’s financial needs for sustainable projects. 
• While close to half of corporates stated green investment funding as not applicable or are unaware on how funding could meet their sustainable projects needs.

Concerns over of greenwashing

• Investors suspect their portfolio companies are engaging in “greenwashing” activities, with 57% of investors believing a moderate to a large extent that their portfolio companies are engaging in “greenwashing”.
• Corporates, on the other hand, worry that their sustainability-linked activities are considered “greenwashing”.

Recommendations

• Investing in data and metrics: Corporates should invest resources in accurately tracking key sustainability metrics to enhance sustainability reporting and communication.
• Comprehensive transition plans: Formulate transparent and detailed transition plans with clear targets and mitigation measures to give investors confidence in the corporate commitment to net-zero goals.
• Investor responsibilities: Advocate for education and capacity building within portfolio companies to align with global sustainability frameworks.

The survey was conducted from 7 November to 27 December 2024, gathering online responses from corporations and investors across Asia.

The survey underscores the importance of actionable insights to facilitate corporations' transition towards a sustainable future. By addressing key challenges and leveraging opportunities, corporations and investors can align their strategies with long-term sustainability objectives.

Beyond borders: capturing growth in the dynamic cross-border payments market

EY also unveiled the latest thought leadership report “Beyond borders: capturing growth in the dynamic cross-border payments market” during AFF 2025. The report highlights the immense potential of the cross-border payments industry, projected to reach US$290 trillion by 2030, and the fierce competition within this evolving market.

Cross-border payments traditionally have been more complex than domestic transactions due to multiple intermediaries. But great strides have been made in recent years, and the pace of change is rapidly accelerating, fueled by the growing demand for e-commerce, expanding global trade and the speed of technological transformation. This evolution isn’t being driven by a singular stakeholder. It is a collective push with regulators, large corporates and banks embracing change, and new entrants continuing to introduce innovative solutions to address traditional pain points.

The report emphasizes the rapid advancements in the cross-border payments landscape, driven by the growing demand for e-commerce, expanding global trade, and technological transformation. There is now a global focus on enhancing the cross-border payments ecosystem, centered on the G20 roadmap and propelled by unprecedented collaboration between the public and private sector.

This seismic shift brings with it a new set of business imperatives. To harness the value unlocked by these new market dynamics, banks and other stakeholders – be they FinTechs, MTOs or infrastructure providers – must rethink their strategies.

In this report, developed through forensic analysis of the cross-border payments landscape and in dialogue with industry leaders, EY identifies six urgent priorities for the sector:

• Capitalize on real-time payments to enhance cash flow and liquidity
• Accelerate the shift to enhanced messages with ISO 20022 
• Ramp up AML efforts and controls to meet international sanctions requirements
• Innovate with digital currencies and CBDCs to reduce costs and drive efficiency
• Forge strategic partnerships between banks, FinTechs, and regulators
• Harness the potential of embedded payments to meet the demands of digital marketplaces

These strategic priorities unlock significant potential across the payment value chain. By leveraging the transformative capabilities of real-time and embedded payments, adopting new data standards, utilizing digital assets, and implementing advanced screening technologies, banks can strengthen their role in the cross-border payments ecosystem and meet the increasingly complex needs of the global economy.

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