GREATER transparency, governance and impact measurement are needed to connect capital with businesses and social enterprises seeking funding.
HSBC South and Southeast Asia director of Sustainability and Climate Change Pritya Pravina said the challenge was not a shortage of capital, but matching funds with credible and investable opportunities.
Speaking on “Impact Investing Ecosystem Transformation: Social Stock Exchange and Blended Finance” at the Sabah Asia-Pacific Impact Investing for Sustainable Development Summit 2026, she said investors needed confidence that their funds were reaching intended beneficiaries and delivering measurable outcomes.
Pritya said investors required clear information on the impact of sustainable and social projects, including baseline data before intervention and proper measurement after implementation.
She said initiatives such as the Social Stock Exchange could strengthen confidence in social enterprises and impact projects through improved transparency, governance and reporting standards.
Better disclosure would allow investors to identify beneficiaries, assess whether projects addressed underserved communities and reduce the risk of social washing, she added.
Pritya said financial institutions also relied on credible intermediaries to reach micro-enterprises and small businesses, particularly in communities where banks might not have direct access.
She cited HSBC’s financing support for TMSS (Thengamara Mohila Sabuj Sangha) and BRAC in Bangladesh, which provide financing and support to micro-enterprises, small businesses and underserved communities.
The transactions were structured according to the Social Loan Principles developed by the Asia Pacific Loan Market Association and the Loan Market Association.
Pritya said the principles focused on four areas — use of proceeds, project evaluation and selection, management of proceeds, and reporting.
“These elements ensure financing reaches eligible social activities, projects are properly assessed, funds are used for their intended purposes, and social outcomes are measured and reported,” she said.
Closer to home, she highlighted HSBC’s involvement in a US$159 million Social Sukuk Wakalah programme issued by LBS Bina Group to support affordable housing development in Malaysia.
She said the Sukuk was 6.4 times oversubscribed, reflecting investor confidence in a sustainability framework supported by strong governance and reporting.
“These examples demonstrate that capital is available when projects are well structured, transparently governed and supported by credible impact measurement,” she said.
Pritya said strengthening these elements would encourage greater private sector participation and expand impact financing models across more markets and sectors.
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