At the Airline Economics panel on sustainability-linked finance (SLF), a central theme emerged: is SLF or GSSL (Green and Sustainable Structured Lending) just business as usual? As the discussion unfolded, the panelists highlighted how easy it is to lose sight of fundamental financial principles amidst the pool of ESG (Environmental, Social, and Governance) jargon, SPTs (Sustainability Performance Targets), and KPIs (Key Performance Indicators).

The key takeaway was clear: if companies that are better prepared for the energy transition are inherently stronger and more creditworthy, then the associated financing should reflect a lower risk profile and, consequently, lower margins. In essence, what we are seeing is simply an adjustment in credit analysis to account for energy transition risks, regulatory compliance, and long-term sustainability. This viewpoint was supported by ASAFA’s Director of Governance, Hui Ling, who was joined in London by Ryan Opeka, COO of Jackson Square Aviation, and Frank Wulf, Global Head of Aviation at Nord LB. They discussed how Sustainable Aviation Fuel (SAF) implementation has now become an integral part of green and sustainability-linked financing in the aviation sector.

The conversation highlighted the challenges facing industry leaders—particularly around how to finance the energy transition. Long-term, intergenerational investors are increasingly driving the agenda, but broader engagement is necessary. As Hui Ling pointed out, we need to focus on gaining the “social license” to operate by building consumer trust and confidence in the safety and environmental aspirations of the industry. The Asia SAF Association (ASAFA) is stepping in to address these very concerns.

At MRO Asia in Singapore, this theme of consumer engagement and trust-building continued. Hui Ling spoke alongside Mallika Ramakrishna, Director of Promotion Strategy at Embraer, addressing how SAF infrastructure development and outreach to family offices are vital to securing long-term investment and public support for sustainable aviation initiatives.

Another hot topic was the danger of “greenwashing” and “green hushing.” Companies need to navigate the fine line between meeting genuine reporting obligations and succumbing to PR-driven sustainability narratives. The panel at Airline Economics stressed the importance of setting credible standards and maintaining transparency to avoid misleading practices and to bolster investor and consumer confidence in the sector’s sustainability efforts.

Additionally, the issue of supporting talent transitions within the aviation sector emerged. Initiatives like Women in Aviation International's Singapore Chapter were highlighted as crucial to ensuring that the industry doesn’t create “stranded talent” amid the transition to greener practices. Embracing diversity and supporting career shifts will be key to retaining talent and fostering innovation as the industry adapts to new challenges.

In summary, the sustainability-linked finance panel at Airline Economics brought to light how SLF, while vital, may in fact mirror traditional financing models with an additional layer of energy transition risk assessment. Meanwhile, MRO Asia underscored the importance of engaging with consumers, building trust, and developing the necessary infrastructure for SAF. Both events made it clear that true innovation and transparency are critical to successfully navigating the energy transition and ensuring long-term sustainability in aviation.