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Sustainable finance: How can we create a finance system that incentivises and rewards long-term thinking?

It is widely recognised that today's financial system does not actively reward long-term thinking. Often, it can actually work against efforts to build a sustainable economy.

Our Centre for Sustainable Finance draws on the work of CISL’s leadership groups across the financial system; bringing together our research and education programme on sustainable finance. We work long term with over 50 financial institutions from across five continents. With support from academics and expert practitioners, we develop solutions to challenges firms cannot tackle alone and impact both policy and market practice.

Across our leadership groups in insurance, banking and investment, we have developed particular expertise in three key areas of sustainable finance:

Risk and resilience

Embedding resilience to environmental risk in routine financing decisions.

Positive impact

Enabling investors to achieve positive impact against the Sustainable Development Goals.

Harnessing the digital revolution to direct capital to sustainable business models.

Sustainable finance leadership groups

ClimateWise (global insurance)

ClimateWise comprises 32 leading insurers, reinsurers, brokers and industry service providers who share a commitment to reducing the impact of climate change on society, as well as the insurance industry.

Banking Environment Initiative

Some of the world’s largest banks working to lead their industry in directing capital towards environmentally and socially sustainable economic development.

Leading investment managers and asset owners with over £15 trillion under management working to help shift the investment chain towards responsible, long-term value creation.

 

Latest news and thought leadership


New action plan for banks to halt deforestation unveiled by University of Cambridge Institute for Sustainability Leadership

12 January 2021 – A new report outlines how banks can take steps to accelerate the reduction and reversal of deforestation leading to greater stability for nature, climate and the economy.

New action plan for banks to halt deforestation unveiled by University of Cambridge Institute for Sustainability Leadership - Read More…

Banking beyond deforestation

January 2021 – The University of Cambridge Institute for Sustainability Leadership (CISL) has published a new report detailing how the banking industry can contribute to halting and reversing deforestation.

Banking beyond deforestation - Read More…

Mapping the evolving complexity of large hydropower project finance in emerging economies

This paper is the second in a series of working papers emerging from the CISL’s contribution to the FutureDAMS project, with a specific focus on the questions around sustainable finance for sustainable hydropower projects in developing countries.

Mapping the evolving complexity of large hydropower project finance in emerging economies - Read More…

Bank 2030: Accelerating the transition to a low carbon economy

30 January 2020 – This report authored by the University of Cambridge Institute for Sustainability Leadership’s (CISL) Banking Environment Initative (BEI) highlights the need for banks to develop an ‘active mindset’ in order to accelerate the transition to a low carbon economy.

Bank 2030: Accelerating the transition to a low carbon economy - Read More…