Banking and Asset Management

What role do the banks and asset owners have to play?

Key information

Banking and Asset Management are tools for Sustainability and Development. But the United Nations Conference on Trade and Development 2020 report confirms that there is a $2.5 Trillion Gap to achieve the Sustainable Development Goals. World Investment Report.

Source: World Economic Forum, 2017

More money needs to flow towards sustainability and green projects. Current investment trends and monitoring capacities show we fall short. Green Finance Platform

We can do this by mapping the SDGs to Impact Investing and aligning our goals to our tools. How do we connect the SDGs to ESG?

How to Get to Sustainable Banking

In our banking world, we need to have structural reforms, integrate ESG risks, and use more sustainable lending. One place that has defined the principles we need is the Global Alliance on Banking Values (GABV).

Another effort to follow is the UN's Principles of Responsible Banking which has had massive adoption with 45% of global assets participating including 275 signatories. You can check if your bank has signed the principles here: UNEFPI Signatories. Check this for resources for implementation.

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Source: Frankfurt School of Finance & Management

Think of Asset Managers as chefs because they create portfolios for their clients to balance: Risk, Return, and Impact (Sustainability). The "chef" must cater to the needs of their clients and allign their needs and motives to security possibilities.

If you want more

There’s a $2.5 trillion development investment gap. Blended finance could plug itWorld Economic Forum