Universities in Asia ascend global rankings for sustainability leadership
With limited financial resources and politicised data becoming increasingly prevalent, the contribution of universities in generating knowledge, testing financial models, and sharing insights across sectors is set to become one of Asia's most valuable assets in global development.
In emerging economies, such as Indonesia, the financing gap is particularly severe. The country faces a funding shortfall of $1.7 trillion USD by 2030 to meet its SDG commitments. However, universities are stepping up to the challenge, engaging in green bonds, sustainability-linked loans, and blended finance models.
Research centres at Indonesian universities have contributed to policy frameworks on carbon pricing, renewable energy investment, climate finance governance, and Islamic social finance. This research-driven approach is not unique to Indonesia; universities across Asia are increasingly recognised for their role in sustainable finance, bridging research with policy and investment strategies.
Universities in Asia are also expanding need-based scholarships, integrating community engagement into curricula, and promoting open-access research to extend knowledge beyond campus boundaries. This holistic approach ensures that the next generation of leaders is equipped to address the financial demands of SDGs.
One such leader is Bayu Arie Fianto, the Director of the Center for Advance Resilience and Inclusive Studies (CARE) at Universitas Airlangga. Fianto, who is also an Associate Professor at the university and President of the Indonesia SDGs Center Network (ISCN), has advised organisations like UNICEF, USAID, and Bank Indonesia on sustainable finance.
The inclusion of universities in global development financing discussions is a significant shift. 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 these discussions.
Asian universities are increasingly featured in global sustainability rankings, reflecting their growing influence in sustainable finance research and innovation. 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.
However, structural barriers in education access in emerging economies, such as declining international aid, rising tuition costs, and limited digital infrastructure, remain challenges. Despite this, the growing presence of Asian universities in sustainability rankings signals a shift toward embedding sustainable finance within academic and institutional priorities.
As universities continue to innovate and lead in sustainable finance, they are contributing to the design of financial taxonomies, ESG standards, and impact measurement tools. This work is crucial, given that according to the UN Sustainable Development Report 2024, only 15% of SDG targets are on track, while more than 30% show stagnation or decline.
In summary, Asian universities serve as knowledge hubs, innovators, and capacity builders, helping to catalyse financial resources and develop sustainable finance ecosystems essential for achieving the SDGs amid persistent global and regional funding shortfalls.
- Universities in Asia, like the Center for Advance Resilience and Inclusive Studies (CARE) at Universitas Airlangga, are bridging the gap between research, policy, and investment strategies, especially in sustainable finance.
- Universities across Asia are working to address the funding shortfalls in emerging economies, such as Indonesia, by engaging in various financial models, such as green bonds and blended finance.
- Research centres in Asian universities are contributing significantly to the development of policy frameworks on topics such as carbon pricing, renewable energy investment, and climate finance governance.
- The role of universities in sustainable finance is gaining recognition globally, with the United Nations including them in discussions at the Fourth International Conference on Financing for Development (FFD4) in 2025.
- Asian universities are increasingly influencing global sustainability rankings due to their contributions in sustainable finance research and innovation, indicating a shift towards prioritizing sustainable finance academically and institutionally.
