Tuesday, March 31, 2009

Put People First - the role of sustainable finance

Over the weekend, I read the policy platform produced by Put People First – the civil society coalition formed in advance of the London Summit.

I was really struck by its strong focus on sustainable investment and finance.

In seeking greater ‘democratic governance of the economy’, the platform calls for financial regulation that promotes long term sustainable investment over ‘damaging’ investment and for investors to sign up to the UNPRI. It recommends to the UK government that environmental, social and governance impacts be included in stock market listing and corporate reporting requirements.

In making the case for a ‘green new deal’, Put People First identifies green financing as an area for job creation and recognises the need to incentivise ‘private savings and pensions…to be at the heart of funding a green new deal’.

The prominence given to sustainable finance is significant, whether or not you agree with the analysis and recommendations.

It reflects an increasing focus on capital markets amongst NGO and trade union campaigners (something that I suspect is here to stay). It also, perhaps, shows that civil society groups are developing a better understanding of capital markets, the role of investors and of the enabling possibilities of sustainable finance.

To my mind this is to be welcomed. If the interaction between civil society and the City is constructive, albeit critical, and built on common understanding, the possibility grows that tomorrow’s financial services regime will enable the transition to a low carbon economy and address the looming climate and resources crunch.

1 comment:

  1. Very interesting - I suspect that I had fallen into the trap of assuming relatively low level of financial sophistication behind the protest - your piece helpfully contradicts my prejudice

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