The United Kingdom: Global hub, local dynamics looks at the steps that the UK has taken towards a sustainable financial system shaped by its role as a global financial centre and a distinctive dynamic between social entrepreneurs and civil society organisations, market innovation and policy frameworks. The City of London is not only home to some of the world’s largest financial markets, but also to a range of sustainable finance initiatives that are setting the agenda both domestically and internationally.
Following the financial crisis, there has been a shift in the way in which sustainability is being pursued, moving from institutional to a systemic approach. Looking across the system, five key avenues of change within the UK can be identified, all of which have direct or indirect implications for the rules that govern the financial system:
The US financial system is undoubtedly among the largest, most innovative and most sophisticated in the world. It is also clear that this is both a benefit and an impediment to non-governmental investment in sustainability and inclusiveness. To date, the actual investment in infrastructure and sustainability does not meet current needs, especially those related to maintaining climate change to within manageable bounds.
Aligning the Financial System with Sustainable Development in the United States of America examines the decision process embedded in the US financial markets that determines what endeavours are funded by capital investment and suggests areas that can be addressed to improve results.
Designing and building a sustainable financial system requires a broad focus on what sustainability requires in all its aspects and how finance can help deliver on that important objective. This task includes not only delivering financing for sustainable environmental outcomes and addressing climate change, but it also includes attention to the needs of a sustainable society. Societies in which segments of the population suffer extreme poverty, marginalisation and discrimination, lack access to basic healthcare and education, or lack the rule of law or freedom of speech, or must cope with dysfunctional, corrupt or unaccountable public institutions, create social pressures which, in turn, strain environmental and economic resources. It is difficult if not impossible to address the needs of a sustainable planet without taking account of the critical role that a sustainable society plays. It follows that a sustainable future for all requires a coherent vision of how the layers of society, economy, environment, and finance interact, and the role of the financial system in facilitating sustainable livelihoods and societies.
The State of Sustainable Finance in the United States discusses the topography of financial sector surrounding the sustainable momentum in the US. While US financial institutions have at times enjoyed a reputation of being something of a laggard on sustainability issues versus their European counterparts, significant changes and innovations are under way which are beginning to drive meaningful change.
Record levels of awareness on sustainability issues in the US, including from millennials, are accelerating activities such as:
- Increased levels of sustainable and responsible investing.
- An increased focus from the largest US banks and other financial institutions on sustainability risks, lending practices and related opportunities.
- US insurance companies and related regulators are also developing and evolving sustainability risk frameworks.
- Federal and State policies are accelerating the ongoing US low carbon energy transition.
Financial innovation is driving meaningful change in many investment sectors while social innovation and culture development also continue to evolve.