The Prince’s Accounting for Sustainability Project (A4S) in partnership with Aviva Investors has launched the Financing our Future report, which makes recommendations on how each part of the investment chain can take practical actions to move towards a sustainable global financial system that supports delivery of the UN Sustainable Development Goals (SDGs) and on a pathway towards achieving the Paris Agreement.
The report has been referred to during the ‘Financing the 2030 Agenda for Sustainable Development’ session during the 73rd Session of the United Nations General Assembly (UNGA) in New York.
A4S convened a Finance Leaders’ Summit hosted by His Royal Highness The Prince of Wales in July, at which the Financing our Future report was first tabled. Over 60 Chairs, Chief Executive Officers, and Chief Investment Officers from global financial institutions attended and contributed to the recommendations including Bank of America, HSBC, the Bank of England, IOSCO, World Bank Group, BlackRock, Brookfield Asset Management, Moody’s, S&P Global, the Government Pension Investment Fund (Japan), BaFin, ABN Amro and Nordea.
The report, which was also supported by Aon, has recommendations for each part of the investment chain to take in order to deliver a sustainable financial system. This includes building a compelling evidence base and motivating people to act, developing consistent terminology, allocating funds to sustainable outcomes, adopting reporting standards, and pricing externalities. It also identified current actions already taken by actors across the financial system and the barriers to progressing further.
Commenting on the launch of the report, Jessica Fries, Executive Chairman of A4S, said:
This report comes at a pivotal time for the investment community. With the Business and Sustainable Development Commission estimating that achieving the SGDs will open up US$12 trillion of market opportunities by 2030, the action of one global financial leader is significant, but the potential for positive impact when acting in concert is immense and this is what we hoped to initiate with the recommendations within the Financing our Future Report
Mark Wilson, Group CEO of Aviva Plc, said:
Business can be the greatest force for good on the planet, but we need to make sure the interests of individuals and organisations reflect the interests of society and our planet. His Royal Highness The Prince of Wales has shown consistent vision and leadership on these issues and I hope that by providing a practical guide for each part of the financial system, this document can act as a catalyst for change.
Joaquim Levy, Managing Director and The World Bank Group Chief Financial Officer, who spoke at the event, said:
The A4S Finance Leaders’ Summit offered a timely opportunity on new ways to mobilise finance to address climate change and fund the considerable mitigation and adaptation efforts required today. New evidence shows that infrastructure debt (especially in “green” sectors) has a better risk profile than usually thought, and we are engaged with financial regulators on how that can help foster this asset class. We look forward to continuing this vital dialogue with investors, asset managers and representatives of savers at the high level Investor Forum which will take place on November 29th, in Buenos Aires, on the eve of Heads of State Summit. We must work together to strengthen the environment for long term sustainable investment