The global financial system needs to be rewired to enable a sustainable recovery from COVID-19 and meet the goals set out in the Paris agreement and in the Agenda 2030 for Sustainable Development. Finance needs to properly account for sustainability risks and impacts, and it needs to be aligned with internationally agreed sustainability goals.
This policy brief makes recommendations to enable the G7 to scale up sustainable finance and align all financial flows with climate and sustainability goals.
This includes the need to intensify efforts to develop, align and implement science-based sustainable finance taxonomies across the G7, make disclosures of climate-related risks and opportunities mandatory for all publicly quoted companies, large private companies, and supervised financial institutions, and introduce a harmonized standard across the G7. It also calls to scale up sustainable and climate finance for developing countries.