CLIMATE CHANGE AND CLIMATE FINANCE CURRENT EXPERIENCE AND FUTURE DIRECTIONS Edited by Fariborz Moshirian and Cyn-Young Park SEPTEMBER 2023 ASIAN DEVELOPMENT BANK CLIMATE CHANGE AND CLIMATE FINANCE CURRENT EXPERIENCE AND FUTURE DIRECTIONS Edited by Fariborz Moshirian and Cyn-Young Park SEPTEMBER 2023 ASIAN DEVELOPMENT BANK  Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2023 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 8632 4444; Fax +63 2 8636 2444 www.adb.org Some rights reserved. Published in 2023. ISBN 978-92-9270-308-0 (print); 978-92-9270-309-7 (electronic); 978-92-9270-310-3 (ebook) Publication Stock No. TCS230333-2 DOI: http://dx.doi.org/10.22617/TCS230333-2 The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this publication, ADB does not intend to make any judgments as to the legal or other status of any territory or area. This publication is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at https://www.adb.org/ terms-use#openaccess. This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material. Please contact pubsmarketing@adb.org if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo. Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda. Notes: In this publication, “$” refers to United States dollars. ADB recognizes “America” as the United States; “China” as the People’s Republic of China; and “Hongkong” and “Hong Kong” as Hong Kong, China. Cover design by Francis Manio. On the cover: A woman installing solar panels on the roof in Bhutan, Astana bridge over the Ishim River, and Khandke wind power project photos from ADB’s Flickr account; mangrove seedlings and Shatin urban development (housing) project photos by Ariel Javellana; and a handshake photo by Mark Floro. Printed on recycled paper Contents Tables and Figures vii Forewordix Acknowledgmentsxi Editorsxiii Authorsxv Abbreviationsxviii Chapter 1 Introduction 1 Fariborz Moshirian and Cyn-Young Park Chapter 2 Climate Justice 7 Bethany Rodgers 2.1 Introduction 2.2 The Climate Justice Concept 2.3 Conclusion Chapter 3 Do Directors Have a Duty to Consider Social and Environmental Impact? 7 9 22 27 Mark Humphery-Jenner 3.1 Introduction 3.2 “Best-Interests” Duty and Social and Environmental Impact 3.3 Improper Use of Position 3.4 What about the Duty of Care? 3.5 Greenwashing and Misleading Statements 3.6 What about the Business Judgment Rule? 3.7 Conclusion 27 29 33 34 36 38 40 iv Contents Chapter 4 Green or Green Image? Selective Disclosure of Corporate Suppliers 44 Yilin Shi, Jing Wu, and Yu Zhang 4.1 Examining Corporate Social Responsibility in Supply Chains 4.2 Selective Disclosure of Green Suppliers 4.3 Factors Driving the Selective Disclosure of Green Suppliers 4.4 Conclusion Chapter 5 The Economic Consequences of Corporate Social Irresponsibility and Policy Implications 44 48 51 55 60 Guanming He, Zhichao Li, and Richard Slack 5.1 Introduction 5.2 Coexistence of Corporate Social Responsibility and Corporate Social Irresponsibility 5.3 Economic Consequ