A ‘quiet revolution’ is underway in the global financial system as its leaders wrestle with the implications of global sustainability. Expectations from clients and regulators are climbing steadily, causing financial institutions to rethink current operating practices, and adopt longer term, more forward-thinking strategies. This trend is set to continue as sustainability issues translate into ever more substantive risks and opportunities.Through a unique combination of deep industry collaboration, high-calibre research, and exceptional education programmes, the Centre for Sustainable Finance is helping financial institutions to play a leading role in building a more sustainable economy.Contact us to find out more. |
Collaboration
Working with over 50 global financial institutions across banking, insurance and investment, we provide the insight needed to challenge current assumptions and lead change.
ClimateWise (global insurance)ClimateWise comprises 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 InitiativeSome of the world’s largest banks working to lead their industry in directing capital towards environmentally and socially sustainable economic development. |
Investment Leaders GroupLeading investment managers and asset owners with over $9 trillion under management working to help shift the investment chain towards responsible, long-term value creation. |
Interaction with policy
The Centre bridges the worlds of business, finance and policymaking in order to enable the transition to a sustainable economy, facilitating stronger mutual understanding between financial institutions, their clients in the real economy and the institutions which govern them. For example, the Centre is academic visitor at the Bank of England helping to support its work in leading the sustainable finance agenda. It has worked with De Nederlandsche Bank (DNB) on the financial impact of disruptive energy transition, collaborated with the South African National Treasury and Banco de Mexico on embedding environmental scenarios into financial risk frameworks and was the knowledge partner for the G20 Green Finance Study Group in 2016 and 2017. Finally, as a founding member of the Global Research Alliance for Sustainable Finance and Investment, the Centre is an official research stakeholder for the Network for Greening the Financial System.
Research
We have a particular reputation for translating high-quality research into practical solutions to advance both policy and market practices.
Risk and resilienceEmbedding resilience to environmental risk in routine financing decisions. This includes the Centre’s work with banks and asset managers to identify and assess the financial risks of nature loss. |
Positive impactEnabling investors to achieve positive impact against the Sustainable Development Goals. |
InnovationHarnessing the digital revolution and financial innovation to direct capital to sustainable business models. |
Research hub for sustainabilityOur research is intended to strengthen the impact of business, government and financial institutions by informing their transition to a sustainable economy. |
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Current research
The Centre conducts research on mainstreaming environmental and social scenarios into financial risk analysis; measuring ‘asset stranding’ effects under future technology transitions; understanding the role of the financial system in financing a sustainable, zero carbon economy; science-based measures to quantify non-financial outcomes of investment; innovative financing of sustainable infrastructure; and consumer demand for sustainable investment funds.
Our research is intended to strengthen the impact of business, government and financial institutions by informing their transition to a sustainable economy, herein defined as a net zero, circular, restorative economy within an inclusive, resilient society exhibiting high levels of social and environmental justice. As part of our commitment to enacting real-world change, we have identified five ‘applications in practice’ which drive research at CISL:
- Future risk and opportunity - A better understanding of sustainability risks allows companies to convert them into opportunities.
- Business strategies and models - Sustainable business models enable companies to go beyond financial success into purposeful impact on society.
- Measures, targets and disclosure - Key to trust is transparency, and sustainability provides the perfect performance framework.
- Culture, capacity and leadership - Seeing problems differently demands leadership, yet this is exactly what companies must do to become agents of positive change.
- Social and political change - Companies can use their influence to drive sustainability, aligning their ambitions with long-term value creation for society.
Zero carbon
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Circular economy
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Protection of nature
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Inclusive and resilient societies
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Education and advisory
Financial institutions increasingly recognise the benefits of aligning their commercial strategy with the sustainable economy. Leading organisations, especially banks and insurers, are already seeking new financing opportunities, engaging clients to develop new products, and developing new policies and metrics to understand the implications of sustainability.
Despite this realisation, many senior decision-makers are struggling to respond. Board and executive team members often lack the relevant knowledge about how quickly sustainability issues are changing. Senior client, portfolio and product leaders are often unaware of emerging commercial opportunities from new technologies or the risks associated with supporting traditional industries. Many organisations are struggling to develop clear, long-term positions to finance the transition of key sectors such as transportation, energy and agriculture.
Our education programmes are designed to bring rigour, clarity and confidence for leaders to respond.
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Recent sustainable finance publications
18 June 2019
21 June 2019 – A new study from the University of Cambridge Institute for Sustainability Leadership has, for the first time, analysed how mutual microinsurance, a community-owned model of insurance, contributes to the recovery outcomes of low income households following a natural disaster.
Centre for Sustainable Finance chairs discussion on the challenges facing hydropower in Africa
28 May 2019
28 May 2019 – Last month, the Centre for Sustainable Finance chaired a panel discussion on attracting private finance into sustainable infrastructure, with the focus on hydropower, at the “Africa 2019” Water Storage and Hydropower Development for Africa conference in Windhoek, Namibia.
Centre for Sustainable Finance hosts the FRANTIC consortium's first workshop
22 May 2019
27 May 2019 – Earlier this month, the Centre for Sustainable Finance hosted a workshop on quantifying climate-related transition risks to the UK financial system. The workshop was organised by the consortium behind the project FRANTIC – Financial Risk and the Impact of Climate Change.
2 November 2018
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.
A landmark report supported by CISL assesses the financial impact of disruptive energy transition
9 October 2018
11 October 2018 – On Monday, De Nederlandsche Bank (DNB) launched an energy transition risk stress test for the financial system of the Netherlands. The study, supported by the University of Cambridge Institute for Sustainability Leadership's Centre for Sustainable Finance, provides a first attempt at assessing potential financial stability impact of a disruptive energy transition.
Financing climate adaptation: what’s next?
4 July 2018
6 July 2018 – Miroslav Petkov, Director in S&P Global Ratings' Sustainable Finance Team, considers the possible growth of climate adaptation financing in the face of increasingly adverse environmental conditions.
30 May 2018
31 May 2018 – Approximately two-thirds of G20 member states have actively engaged with the recommendations of the Task Force on Climate Related Financial Disclosures (TCFD), set up by Bank of England Governor Mark Carney to help the financial sector take account of climate-related issues.
30 May 2018
May 2018 – This report; Sailing from different harbours: G20 approaches to implementing the recommendations of the Task Force on Climate-related Financial Disclosures, reviews the progress made by the national regulatory agencies of G20 members in making the TCFD recommendations relevant to their national contexts. It considers actions taken by the national (and international in the case of the EU) regulatory authorities in underlining the relevance, and taking steps towards potential implementation, of the TCFD recommendations.
New tools and analysis from CISL published in G20 report to help financial firms manage climate risk
7 July 2017
11 July 2017 – For two years CISL has been a knowledge partner of the G20 Green Finance Study Group, with the resulting report, 'Enhancing Environmental Risk Assessment in Financial Decision-making', published at the end of the G20 summit. Kajetan Czyz, Programme Director, Sustainable Finance at CISL, discusses how the tools in the report aim to help financial firms carry out environmental risk analysis more effectively.
Five ways to mainstream green finance now
7 July 2017
11 July 2017 – How can the financial industry aid climate-related financial disclosures, enhance environmental risk analysis, and make better use of publicly available environmental data to analyse financial risk and inform decision-making on future investments, asks Dr Nina Seega, CISL Research Consultant and co-author of the G20 Green Finance Study Group’s background paper on Enhancing Environmental Risk Assessment in Financial Decision Making.
