Global sustainability leadership rankings see a climb by Asian universities
Asian universities are taking centre stage in the global drive towards sustainable finance, playing a crucial role in bridging the Sustainable Development Goals (SDG) financing gap and advancing sustainable investment strategies.
These institutions are generating critical research that aligns academic inquiry with real-world financing challenges faced by governments in the region. They are fostering partnerships with government agencies, NGOs, and other universities, fostering cross-sector collaboration that supports SDG financing and implementation.
Universities are also contributing to policy dialogues by proposing sustainable financing frameworks and training stakeholders in sustainable finance concepts that underpin sound investment decisions. Collaborations involving Asian universities and financial institutions help mobilize new sources of funds for sustainability projects, including climate-resilient infrastructure and vocational education aligned with green economy needs.
Innovative financing models, such as green bonds, sustainability-linked loans, and blended finance models, are being embraced by universities in the region. These models are designed to address the significant gap in SDG funding, particularly in emerging economies like Indonesia, which faces a funding shortfall of 1.7 trillion US dollars by 2030 to meet its SDG commitments.
Academic research extends to specialized areas like Islamic finance, which presents ethical, Shariah-compliant finance instruments emphasizing social inclusion, environmental sustainability, and social finance tools like zakat. This promotes equitable resource distribution in line with SDGs, highlighting the potential to expand Islamic finance's role in sustainable investment policies and frameworks in Asia.
Asian universities are acting as sustainability hubs, bridging research with actionable investment and policy solutions. They are advancing sustainable finance through knowledge-sharing, partnership formation, and supporting new financing mechanisms that address the SDG funding gap, particularly in emerging economies.
The Times Higher Education Impact Rankings 2025 highlight a growing presence of Asian institutions in sustainability leadership, with 22 of the top 50 universities now coming from the region, an 83% increase from the previous year. Bayu Arie Fianto, an Associate Professor at Universitas Airlangga, is a prime example of this leadership, having advised UNICEF, USAID, and Bank Indonesia on sustainable finance.
The United Nations has recognised the vital role of universities in global development financing, including them in discussions at the Fourth International Conference on Financing for Development (FFD4), scheduled for July 2, 2025. The inclusion of an Academic Day at FFD4 marks the first formal participation of universities in these discussions.
Universities in the region are also expanding need-based scholarships, integrating community engagement into curricula, and promoting open-access research. Despite facing challenges in education access, such as declining international aid, rising tuition costs, and limited digital infrastructure, universities are advancing inclusive policies to ensure that sustainability benefits all sectors of society.
The growing presence of Asian universities in sustainability rankings signals a shift towards embedding sustainable finance within academic and institutional priorities. This shift could prove to be one of the region's most valuable assets in global development, as the world strives to meet the SDG targets, with only 15% on track and more than 30% showing stagnation or decline according to the UN Sustainable Development Report 2024.
- Asian universities are generating critical research in areas such as Islamic finance, which emphasizes social inclusion, environmental sustainability, and social finance tools like zakat, promoting equitable resource distribution in line with SDGs.
- These institutions are advancing sustainable finance through knowledge-sharing, partnership formation, and supporting new financing mechanisms that address the SDG funding gap, particularly in emerging economies.
- Universities, recognizing their vital role in global development financing, have integrated community engagement into curricula and expanded need-based scholarships to ensure that sustainability benefits all sectors of society.
- The Times Higher Education Impact Rankings 2025 highlight a growing presence of Asian institutions in sustainability leadership, with a significant increase in the number of top universities from the region.
- In the Fourth International Conference on Financing for Development (FFD4), the United Nations has included an Academic Day for the first time, recognizing the formal participation of universities in these discussions, underscoring their importance in bridging the SDG financing gap and advancing sustainable investment strategies.
