Global Initiatives
The diagram below depicts a simplified view of the global financial system, and how the financial system relates to the real economy, primary sources of capital, key stakeholders and financial flows.
| Key players | Sustainability Context |
|---|---|
|
Commercial Banks and Investment Banks |
The banking sector plays a crucial role in promoting sustainable development. By integrating sustainability into a bank's business strategy and decision-making processes, institutions can support environmentally or socially responsible projects, innovative technologies and sustainable enterprises
Relevant guidelines and framework: |
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Insurance companies |
The contribution of the insurance industry to sustainable development relates to its three roles—risk carrying, risk management and institutional investment. Particular areas where the insurance industry is finding new ways to respond to the diverse needs of individuals, government and commercial enterprise and support sustainable development are in relation to natural disasters, financial inclusion, aging populations and the insurance and investment needs of the green economy.
Relevant guidelines and framework: |
|
Private equity (PE) and venture capital (VC) |
PE/VC funds, with their unique combination of risk capital and expertise, are particularly well suited to identifying and using equity and quasi-equity to scale the best innovative business models and sustainable businesses in both emerging markets and advanced economies. In keeping with the characteristics of broader sustainable investment practices, sustainable PE/VC is an investment discipline that injects capital into promising privately held companies and considers ESG criteria to generate long-term competitive financial returns and positive social impact.
Relevant Guidelines and framework: |
|
Digital platform providers |
Sustainable Digital Finance for fintech refers to financing, as well as related institutional and market arrangements, that leverage technological ecosystems – including mobile payments platforms, crowd-funding, peer-to-peer lending, finance-related big data, artificial intelligence, machine learning, block chain, digital tokens, and the internet of things – to contribute to the attainment of strong, sustainable, balanced and inclusive growth, by directly and indirectly supporting the targets set in the Sustainable Development Goals. Fintech can play a role in mobilising capital for financial inclusion of underserved groups e.g. SMEs and low-income citizens, raising capital for sustainable and resilient infrastructure and financing critical areas of innovation e.g. Sustainable land-use, off-grid energy solutions etc. The framework would depend on the type of business. |
|
Stock exchange |
Stock exchanges play a pivotal role in bringing together issuers and investors and can drive the development of sustainable market-based solutions. In this context, stock exchanges can act first as platforms for disseminating ESG information; second, as providers of market infrastructure for sustainable asset classes; and third, as alternatives to bank finance for small and medium-sized enterprises.
Relevant Guidelines and framework: |