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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.

CISL’s Centre for Sustainable Finance is a research, education and practice hub on financial market reform to help governments, financial institutions and businesses build a sustainable financial system. Its work is underpinned by insights from CISL’s finance sector business groups, made up of leaders from over 50 financial institutions across five continents.

ClimateWise (global insurance)

ClimateWise comprises 29 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.



Investing for Resilience 

Environmental_risk_analysis.pngTraditional response to rising levels of risk – to re-price, withdraw or transfer exposure to others – will always remain a central feature of how insurance manages its risk pools. However, society will struggle to reduce the climate risk protection gap – the growing divide between total economic and insured losses – if the insurance industry’s response to climate change is limited to avoiding, rather than managing the risk. Managing societal resilience to climate change will therefore become more important as exposure intensifies.

In response, ClimateWise’s Societal Resilience Programme, of which this study is part, brings ClimateWise members together with a range of stakeholders to identify actionable solutions for how the insurance industry can support society’s transition to a zero carbon, climate-resilient economy. It explores this via the industry’s investment activities.


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Thought leadership

Rewiring the Economy: Ten tasks, ten years

July 2015, updated June 2016 – Rewiring the Economy is CISL’s ten-year plan to lay the foundations of a sustainable economy. It is built on ten interconnected tasks, delivered by three key groups of leaders: business, government and finance. These tasks are not unique to the plan. Rather, Rewiring the Economy shows how they can be tackled co-operatively over the next decade to create an economy that encourages sustainable business practices and delivers positive outcomes for people and societies.

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Effective regulation for mutual and co-operative insurers can help protect human rights against natural hazards

May 2015 – Effective insurance regulation promotes financial inclusion and supports people’s basic rights of life, livelihood and shelter. Disruptive insurance regulation, or no regulation at all, deprives the poorest people in our world from this protection. Mutual and co-operative providers of microinsurance are very aware of the sharp reality that inclusive insurance, insurance that reaches all strata of our societies, can only thrive with adequate regulation.

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Food Security – Closing the food gap: opportunities for investment?

15 April 2015 – ‘Food Security: Closing the food gap: opportunities for investment?’ investigates three particular categories of food security solutions that can actively contribute to sustainable food security. A focus on postharvest losses illustrates the differing profiles of solutions in developed and developing countries. Biotechnology, especially the area of GM seeds, is an issue that inspires confusion and hot debate. Water management was selected because it is closely tied to climate change, and critical to human health.

Food Security – Closing the food gap: opportunities for investment? - Read More…

Financing the Future of Energy

2 March 2015 – The ‘Financing the Future of Energy’ report launched yesterday at the Global Financial Markets Forum in Abu Dhabi, setting out the changing nature of the global energy system over the next decade and highlighting the growing demand for sustainable energy in the Gulf region.

Financing the Future of Energy - Read More…