Sustainable Finance | WWF        

Sustainable Finance

“Sustainability is history’s biggest investment opportunity” AI Gore, former US Vice President

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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.

 

HEAR FROM US

We are pleased to announce the creation of the Asia Sustainable Finance Initiative (ASFI). Based in Singapore, ASFI was created by WWF and is supported by MAS, and brings together industry, government, academia and civil society to develop and coordinate science based best practices in sustainable finance across Asia. ASFI looks to build on the strengths of all parties as partners continue to come on board.

We are excited to announce the launch of the Sustainable Banking in ASEAN 2018 report and associated interactive Sustainable Banking Assessment (SUSBA) web-based tool. The report and tool benchmark 34 of the largest regional banks in six ASEAN countries against a set of indicators that represent the fundamental pillars of sound corporate governance practices and robust ESG integration. They are an essential reference for regulators, banking associations and banks across ASEAN, as well as for investors globally to assess and identify areas for improvement.

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.

US$ 125 trillion

The estimated annual value of the services provided by our forests, rivers, oceans, and soils

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 this transition, 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.

US$ 4.2-43 trillion

The value of global manageable assets at risk due to climate change

Our Approach

We work with FIs in five key ways:

Engagement with Regulators

We provide recommendations and facilitate dialogue between regulatory authorities and FIs to raise the bar for sustainable finance at the national and regional level.

Thought Leadership

Through research, developing best practice guides and benchmarking progress on ESG integration, we support FIs to ensure timely progress towards a resilient and sustainable financial system.

Capacity Building

We empower FIs through ESG capacity building in both industry-wide workshops and bilateral training sessions. Our trainings cover a range of thematic focus areas, and highlight tools FIs can use to monitor ESG.

Elevating the Influence of FIs

By supporting engagement between financial institutions and their portfolio companies, we help FIs to exert their influence and facilitate large scale, meaningful change.

Green Financial Solutions

We work with FIs to support the development of innovative financial solutions that have positive financial, environmental and social outcomes.

Collaborative: We work collaboratively with key financial institutions and regulators to support the integration of ESG into decision making. WWF also engages directly with companies to help the private sector be better stewards of our shared natural assets. Find out more here

Science Based: Through partnerships with the Science Based Targets Initiative (SBTi) and Context-based Water Targets, we help financial institutions align their portfolios to science based standards that support value creation, while recognising planetary boundaries. 

Global:  With a global network of over 50 sustainable finance professionals, more than 50 years of environmental expertise, and a track record of bringing together actors from multiple sectors, WWF is uniquely positioned to support the transition to a sustainable finance system worldwide.

For more information, please contact us via email at sustainablefinance@wwf.sg or by phone at +65 6730 8148.