This blog was launched nine months ago to track progress in building more sustainable capital markets. Now seems a good time to reflect on this year’s developments. From a UK perspective, which are the most significant signals of future change?
Here is my list of the key trends from 2009:
• Civil society starts to demand a more accountable finance sector
Eg. Anger at remuneration levels, Deepening of NGO research and campaigns
• Politicians, regulators and industry leaders increase support for good governance of asset owners and more responsible ownership of assets
Eg. Lord Myners’ emphasis on “ownerless corporations”, The Pensions Regulator’s governance campaign, the Walker Report’s Stewardship Code recommendations, Personal Accounts Delivery Authority Investment Consultation responses
• Modern green and ethical retail investors and their advisers seek positive ways to make money and make a difference with some of their investments
Eg. YouGov research for National Ethical Investment Week 2009, Conservatives commit to “Green ISAs”
• Stock exchanges deepen their focus on support for sustainability
Eg. World Federation of Stock Exchanges publishes interactive “Exchanges and Sustainable Investment” report, UN hosts sustainable stock exchanges event
• Bonds and other financial instruments for sustainable infrastructure move up the agenda
Eg. HSBC’s Vaccine Bond, second and third issues of World Bank green bonds, the Climate Bonds Initiative
In twelve months time, will these still seem like the key developments in 2009?
Showing posts with label Civil Society. Show all posts
Showing posts with label Civil Society. Show all posts
Sunday, December 20, 2009
Monday, October 19, 2009
Archbishop highlights a shared cultural crisis
Creating a more responsible finance sector requires rebuilding its connection to the wider world and rediscovering a sense of both responsibility for the future of the natural world and joy in making a positive contribution. Or at least that was my conclusion after reading a powerful speech by the Archbishop of Canterbury on climate change delivered last week.
The Archbishop talks about a shared cultural crisis that “could be summed up rather dramatically by saying that it’s a loss of a sense of what life is … a web of interactions, mutual givings and receivings”. He talks about “our calling to nourish” life and secure “a future for all living things”.
He says “a good deal of the talk and activity around the financial collapse has the marks of .. ‘displacement activity’ – precisely because it fails to see where the roots of the problem lie; in our amnesia about the human calling” and “whatever we do to combat the nightmare possibilities of wholesale environmental catastrophe has to be grounded not primarily in the scramble for survival but in the hope of human happiness”.
Even if – like me - you don’t share his religious lens, the speech contains valuable and inspiring insights. Many thanks to UKSIF Vice Chair Helen Wildsmith for pointing me to it.
The Archbishop talks about a shared cultural crisis that “could be summed up rather dramatically by saying that it’s a loss of a sense of what life is … a web of interactions, mutual givings and receivings”. He talks about “our calling to nourish” life and secure “a future for all living things”.
He says “a good deal of the talk and activity around the financial collapse has the marks of .. ‘displacement activity’ – precisely because it fails to see where the roots of the problem lie; in our amnesia about the human calling” and “whatever we do to combat the nightmare possibilities of wholesale environmental catastrophe has to be grounded not primarily in the scramble for survival but in the hope of human happiness”.
Even if – like me - you don’t share his religious lens, the speech contains valuable and inspiring insights. Many thanks to UKSIF Vice Chair Helen Wildsmith for pointing me to it.
Thursday, July 16, 2009
From Crisis to Recovery: Reshaping Capital Markets
I have contributed a chapter on sustainable capital markets to a new Green Alliance pamphlet “From crisis to recovery: New economic policies for a low carbon future".
In it, I describe our policy recommendations to tackle the underlying issues that drive today’s dysfunctional investment approaches. We think this needs not just better regulation but also improvements to leadership, cultural norms and external scrutiny.
Specific proposals include:
In it, I describe our policy recommendations to tackle the underlying issues that drive today’s dysfunctional investment approaches. We think this needs not just better regulation but also improvements to leadership, cultural norms and external scrutiny.
Specific proposals include:
- Pension funds and other major investment owners should be required to report on how they implement their sustainable investment policies
- Publicly owned investment holders should be required to be responsible owners and report annually on their progress
- Greater transparency should be demanded of both companies and institutional investors
- The objectives of financial regulators should enable them to take greater account of the wider public interest, including sustainable development.
It would be great to have your comments on these suggestions and the rest of the chapter.
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.
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.
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