Points of View

The BFS sector’s laggards need to stop only seeing uncertainty in sustainable finance—and think about the innovation process

Mar 17, 2020 Josh Matthews

Many investors still make excuses for not moving toward sustainable endeavors, often citing the uncertainty surrounding the technology, policies, and environments required to transform. While some established giants and newcomers in the banking and financial services (BFS) sector, like HSBC and Nutmeg, incorporate environmental, social, and governance (ESG) factors into their investments, many remain purely focused on financial return. True, we might not know the exact technologies and regulatory environments that will solve the climate crisis, but we do know the innovation processes that will get the green machine moving. Take the dramatic fall in the cost of solar or wind power over the last decade as a proven case. To drive the well-understood sustainable investment vehicles, the BFS sector must connect its capital experts with the technology experts—enterprises, service providers, and policymakers—to nail down viable roadmaps that guide sustainable finance forward.

 

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