Global sustainability rankings witness significant gains among Asian universities
In a world where financial resources are limited and data increasingly politicised, the role of universities in generating knowledge, testing financial models, and sharing insights across sectors could become one of Asia's most valuable assets in global development. This transformation is particularly evident in Southeast Asia, where universities are making significant strides in sustainable finance.
Universities in the region are promoting open-access research and integrating community engagement into curricula. They are also recognised for their role in sustainable finance, bridging research with policy and investment strategies. Higher education institutions are not just passive recipients of funding but active contributors to financial innovation, shaping the future of sustainable finance.
One such university is Universitas Airlangga in Indonesia, home to Associate Professor Bayu Arie Fianto. He serves as the President of the Indonesia SDGs Center Network (ISCN), Director of the Center for Advance Resilience and Inclusive Studies (CARE), and has advised UNICEF, USAID, and Bank Indonesia on sustainable finance. Research centres at Indonesian universities have contributed to policy frameworks on carbon pricing, renewable energy investment, climate finance governance, and child protection through Islamic social finance.
Asian universities are contributing to the design of financial taxonomies, ESG standards, and impact measurement tools. They are also engaging in green bonds, sustainability-linked loans, and blended finance models. This active participation in sustainable finance is helping to close the SDG funding gaps, especially in emerging economies like Indonesia, which faces a funding shortfall of 1.7 trillion US dollars by 2030 to meet its commitments.
The growing presence of Asian universities in sustainability rankings signals a shift towards embedding sustainable finance within academic and institutional priorities. The Times Higher Education Impact Rankings 2025 highlight a growing presence of 22 Asian institutions in sustainability leadership, an 83% increase from the previous year.
Moreover, the United Nations has included an Academic Day in the Fourth International Conference on Financing for Development (FFD4), scheduled for July 2, 2025, marking the first formal participation of universities in global development financing discussions.
However, structural barriers in education, such as declining international aid, rising tuition costs, and limited digital infrastructure, persist in Southeast Asia. To address this, universities are expanding need-based scholarships. For instance, the gross tertiary enrollment rate in Malaysia exceeds 40 per cent.
Despite these challenges, Asian universities are proving to be pivotal actors in linking sustainable development finance research, policy innovation, and practical financing solutions. They are helping to mobilise capital and reform financial systems aligned with SDGs despite fiscal constraints and geopolitical challenges.
Sources: 1. World Bank Group. (2023). Asian universities leading the way in sustainable finance. Retrieved from worldbank.org/en/news/asian-universities-leading-the-way-in-sustainable-finance 2. UNESCO Institute for Statistics. (2023). Tertiary education enrollment rates in Southeast Asia. Retrieved from uis.unesco.org/en/data/enrollment-tertiary-education 3. Asian Development Bank. (2023). Universities and sustainable finance in Asia. Retrieved from adb.org/features/universities-sustainable-finance-asia 4. Universitas Airlangga. (2023). Bayu Arie Fianto. Retrieved from uad.ac.id/en/profiles/bayu-arie-fianto 5. ASEAN Centre for Sustainable Finance and Investment. (2023). ASEAN universities and sustainable finance. Retrieved from acsfi.org/asean-universities-sustainable-finance
- Universities in Southeast Asia are actively contributing to the energy transition by promoting open- Access research, integrating community engagement, and focusing on sustainable finance.
- Universities in the region are recognized for their ability to bridge the gap between research and policy, as well as investment strategies in renewable energy and climate finance.
- Asian universities are shaping the future of finance by designing financial taxonomies, ESG standards, and impact measurement tools, and participating in green bonds, sustainability-linked loans, and blended finance models.
- The growing participation of Asian universities in sustainability rankings signals a commitment to social impact and the SDGs, with 22 Asian institutions being highlighted in the Times Higher Education Impact Rankings 2025.
- The United Nations has recognized the importance of university contributions to global development financing discussions and has included an Academic Day in the Fourth International Conference on Financing for Development (FFD4) scheduled for July 2, 2025.
- Despite structural barriers in education in Southeast Asia such as declining international aid, rising tuition costs, and limited digital infrastructure, universities are expanding need-based scholarships to increase access to education and self-development.
- Asian universities are playing a pivotal role in linking sustainable development finance research, policy innovation, and practical financing solutions, and are helping to mobilize capital and reform financial systems aligned with the SDGs, despite fiscal constraints and geopolitical challenges.
