A brief history of sustainable finance
Birth of the financial mechanisms for reducing carbon emissions
Carbon Disclosure Project
A pioneering organisation to promote transparency and measure the environmental footprint of corporations and states.
United Nations Principles for Responsible Investment (UNPRI)
An association set up by the UN to encourage the financial sector to incorporate ESG criteria into its practices.
Montreal Carbon Pledge
120 institutional investors agree for the very first time to measure their carbon footprint.
Green Bond Principles (GBP)
Investment banks produce a list of best practice for green bonds. These guidelines are now updated each year by the ICMA.
COP21 - Paris Agreement
The Paris Agreement to limit global warming to below 2°C calls for “finance flows to be aligned with climate objectives”.
Sustainable Development Goals (SDGs)
With its 17 SDGs, the UN creates a framework for all political, economic and financial players.
One Planet Summit
International summit bringing together heads of state and governments from over 50 countries, resulting in numerous commitments in support of the fight against climate change.
Financial Centers For Sustainability
This international network of financial centres now has 26 members. [https://institutdelafinancedurable.com/en/2019/06/06/the-fc4s-network-welcomes-3-new-members/]
EU Action Plan on Financing Sustainable Growth
The European Commission adopts its action to support sustainable finance. [https://ec.europa.eu/info/publications/180308-action-plan-sustainable-growth_en]
Climate Finance Day
The Fifth Annual Climate Finance Day will take stock of the latest commitments, achievements and innovations for promoting the transition to a sustainable and inclusive economy.
Why sustainable finance?
Sustainable finance, or green finance, promotes financial transactions that incorporate non-financial criteria, such as environmental, social and governance issues.
INACTION IS MORE EXPENSIVE THAN ACTION
For companies and financial players, the economic, operational, legal and reputational risks of climate change are real.
This is reflected in the warning given by Sir Nicholas Stern back in 2006: “If we don't act, the overall costs and risks of climate change will be equivalent to losing at least 5% of global GDP each year, now and forever.”.
It is in everyone’s interest within the financial sector, whether private, public or institutional players, to prioritise funding practices that incorporate ESG (Environmental, Social and Governance) criteria.
FRANCE, AT THE FOREFRONT OF SUSTAINABLE FINANCE
The Paris Financial Center has become an unparalleled expert in socially responsible investment (SRI). A world leader in green finance, France participates in international initiatives and develops cutting-edge financial tools and regulatory measures.
Each year financiers come together for the Climate Finance Day 2019 organised by Finance for Tomorrow, to take stock of the sector's progress at international level, present innovative ideas and commit to developing sustainable finance.
DIVERTING CAPITAL FLOWS
Finance can accelerate the transition to an inclusive, low-carbon economy and one that is more resilient to climate risks; it needs to support responsible and innovative companies by investing in projects that benefit Nature and Humankind alike.
$ bn/year funding needed to meet the SDGs
trillion $ investment needed to achieve the ecological transition
$ bn/year needed to protect land- and sea-based ecosystems
France is Europe’s leading green bond issuer