Policy changes to ensure sustainable finance future.
Triodos Bank presented ideas for necessary conditions to shape sustainable finance in a new report entitled "New Pathways - Building Blocks for a Sustainable Finance Future for Europe."
The report serves as input for the High Level Expert Group on Sustainable Finance, currently advising the European Commission on the EU strategy on sustainable finance.
The new report is a collaborative effort between Triodos Bank, the Global Alliance for Banking on Values, Finance Watch and Mission 2020, an initiative launched by Christiana Figueres, former Executive Secretary of the United Nations Framework Convention on Climate Change and architect of the 2015 Paris Agreement.
Proposals highlighted in the report are geared towards the repurposing of finance and maintaining the right balance between economic, social and environmental needs. These proposals include:
Include EU citizens in the sustainable finance agenda by creating a new regime for European Sustainability Funds available to all.
Reframe the goal of transparency as one which genuinely invites and enables stakeholders to understand finance, encouraging a focus on managing what matters most.
Recalibrate the regulatory instruments used to ensure financial stability - in particular capital requirements - so that we take into account a more holistic view of the economy, society and environment upon which financial stability is based.
Develop a diverse financial ecosystem to grow a sustainable economy, in order to meet the targets of the Paris Climate Agreement and Sustainable Development Goals. Such an ecosystem consists of financial institutions with different business models, investment horizons and risk appetites, regulated by a consistent framework and including every citizen and firm.
Sustainability as the core value-creation opportunity of the future by promoting sustainable leadership and encouraging training and competency development in managing sustainability at every level of the financial sector.