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Sustainable Finance
© WWF

We collaborate with banks, investors, regulators and stock exchanges to integrate ESG into mainstream finance and create a resilient financial system that supports the global sustainable development agenda. Work with us to harness the finance sector’s collective power to create resilient and sustainable economies.

Making the Link: Financial Markets and the Environment
Natural capital is a key driver of economic growth. The businesses we depend on are driven by many different types of capital – financial, manufactured, social and human. Importantly, they also depend on natural capital; assets such as forests, soil, minerals and water, which provide a range of vital services, from regulating our climate, to purifying our water, to pollinating our crops.

The degradation of our natural capital exposes businesses and societies to systemic risks. The world’s financial and industrial resources have grown over the past century, but we continue to under-price and over-use our natural capital. This comes at a cost. There is now evidence that the widespread degradation of our natural resources poses systemic risks – from climate change to water scarcity – which threaten the long-term viability and profitability of businesses across all sectors.

Financial Institutions (FIs) are particularly exposed to both the risks and opportunities in the transition to a low carbon future, and are uniquely positioned to steer the direction of the global economy.FIs, which lend to, invest in and insure companies across all sectors and geographies, are only as successful as the economies in which they invest.  By integrating Environmental, Social and Governance (ESG) analyses into their lending, investment and underwriting practices FIs can reduce risks to their portfolios, enhance value creation and support companies as they transition to more sustainable business models. This also serves to build a stronger, more resilient global economy.