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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 work convening leadership groups across the financial system is an essential addition to CISL’s broader 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 26 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 US $5 trillion under management working to help shift the investment chain towards responsible, long-term value creation.

 

Latest news and thought leadership


In search of impact: Measuring the full value of capital

May 2016 – As fiduciaries, investors gain by helping beneficiaries make informed choices about the management of their savings and investments. This report aims to help the investment industry empower savers to understand the impact of their investments on the critical challenges of our generation and to invest in line with their world views.

In search of impact: Measuring the full value of capital - Read More…

Taking the long view: A toolkit for long-term, sustainable investment mandates

May 2016 – Short-termism in financial markets has been widely identified as a cause of underinvestment, economic inefficiency and poor decision-making by corporations, that undermines long-term value creation. This report provides a toolkit for investors who wish to design investment mandates that can help shift the investment chain towards responsible, long-term value creation.

Taking the long view: A toolkit for long-term, sustainable investment mandates - Read More…

Feeling the heat: An investors’ guide to measuring business risk from carbon and energy regulation

May 2016 – The COP 21 climate agreement indicates a growing global consensus for action on climate change. In response, this research report assesses the impact of future carbon- and energy-related regulation on the most sensitive industries and geographies at a company level.

Feeling the heat: An investors’ guide to measuring business risk from carbon and energy regulation - Read More…

Incentivising the trade of sustainably produced commodities

April 2016 – This discussion paper explores how to scale up the role that banks can play in supporting the shift towards sustainable soft commodity supply chains.

Incentivising the trade of sustainably produced commodities - Read More…

The Paris Climate Agreement: Implications for banks, institutional investors, private equity and insurers

February 2016 – This briefing paper provides analysis of the most pressing points of the Paris Agreement, and other key developments from the climate summit, and concludes that a coherent, strategic response is required of financial institutions.

The Paris Climate Agreement: Implications for banks, institutional investors, private equity and insurers - Read More…