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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 25 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


A growing interest from the investment community on ways to measure impacts at the launch event of the Cambridge Impact Framework

08 February 2019 – The launch event of the Cambridge Impact Framework brought together over 120 asset managers and asset owners, academics, sustainability experts, alongside EU Commission officials, to discuss the opportunities, challenges and next steps to measure investment impacts.

A growing interest from the investment community on ways to measure impacts at the launch event of the Cambridge Impact Framework - Read More…

In search of impact - Measuring the full value of capital: Update: The Cambridge Impact Framework

January 2019 – Supporting progress against SDGs has become one of the main objectives of the sustainable finance industry. However, measurement of this progress at fund level from both institutional and retail investors is still only developing. Although many challenges remain to be solved, the Investment Leaders Group, convened by the University of Cambridge Institute for Sustainability Leadership (CISL) has designed a set of six open-source metrics which investors can use as proxies for their progress towards the SDGs.

In search of impact - Measuring the full value of capital: Update: The Cambridge Impact Framework - Read More…

Better measures needed to help savers choose investment products, new report finds

January 31 2019 – The Investment Leaders Group found that the data necessary to assess the social and environmental impact of funds is lacking.

Better measures needed to help savers choose investment products, new report finds - Read More…

Gearing up for regulation: The ClimateWise Principles Independent Review 2018

December 2018 – The ClimateWise Principles Independent Review 2018 finds the largest year-on-year improvement in group mean score against the Principles since 2014, and confirms the full alignment of the updated ClimateWise Principles with TCFD recommendations.

Gearing up for regulation: The ClimateWise Principles Independent Review 2018 - Read More…

Embedding environmental scenario analysis into routine financial decision-making in Mexico and South Africa

November 2018 – Following on from its work as a knowledge partner to the G20’s Green Finance Study Group, CISL's Centre for Sustainable Finance has published reports on embedding environmental scenario analysis into financial decision-making in Mexico and South Africa.

Embedding environmental scenario analysis into routine financial decision-making in Mexico and South Africa - Read More…