Convinced that the finance of tomorrow needs preparing today, Sustainable Finance Geneva (SFG) promotes sustainable finance through a book highlighting 60 financial innovations that address 10 global challenges.
Today, the financial industry is evolving quickly and society faces major challenges, many of them disruptive on a global level. Similarly, investors’ profile is changing with the growth of “millennials”.
Whether we are talking about climate change, digitalization, migration or fast-changing social needs, our sector responded to each of these challenges innovatively.
Some of these 60 or so innovations channel capital to concrete projects aiming to produce positive social or environmental impacts such as green bonds, social impact bonds and products that improve farmers’ access to land. Other innovations – such as crowdfunding, mobile banking and blockchain – are reshaping the financial industry to make it more accessible and inclusive. Some speak to the public, from the individual to the pension fund, while others are intended to specialized audiences.
The question today is no longer whether to invest in this industry, but how. And we believe Geneva possesses all the expertise necessary to guide investors.
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Mitigating climate change requires an energy transition and innovations in both the production and consumption of goods and services. Transport, housing, agriculture: everything needs reinventing…
Agriculture faces many challenges. Nutrition, delivery, waste… Innovative stakeholders seek alternatives to industrial and chemical-heavy production methods. They are revisiting agricultural infrastructures and practices.
Eroding trust in political institutions and suspicion of globalization are fostering relations within networks, both local and of interest, thanks in particular to the power of the internet.
Digitalization is shaking up the world as we know it, challenging established industries and enabling the development of technologies that offer new ways of traveling, communicating and investing … It simplifies the inclusion of people who did not previously enjoy access to these services.
All public authorities, industries and individuals are held to high standards of transparency. Technological developments, the internet and social networks provide access to big data, which opens the way to new solutions, improves traceability and increases impact.
With the continuous increase in the world’s population, governments cannot respond to pressing social needs alone. To face these challenges, multiple forms of collaboration are developing between public and private sector players.
Blockchain could prove to be as revolutionary and innovative as the internet. This technology’s long-term impact is almost impossible to predict; it’s disrupting established practices and creating opportunities.
Unprecedented levels of migration, caused by political unrest and climate change, affect all continents and create colossal challenges. They also offer an opportunity for demographic renewal.
The aging of the population in some parts of the world affects many aspects of the economy and society. The amounts invested by pension funds have become very influential, which enables them to foster more sustainable practices.
The new generation, called millennials, is developing and using new technologies with concern for sustainability always in mind. This creates a challenge for established players and drives positive change.
Green bonds provide targeted and transparent financing for environmental projects, while 2°C portfolios limit the carbon footprint of investments in line with international climate goals.
Innovative financing mechanisms improve access to land. The capital raised serves to buy farms and tracts of land to rent them to farmers who are committed to sustainable agriculture.
Crowdfunding broadens access to investment. Its platforms are becoming increasingly specialized, some of them focusing on the social and solidarity economy, renewable energy or microcredit. Meanwhile, local and virtual currencies are fostering new forms of economic interaction within their networks.
The rapid development of mobile banking in some African countries is giving the unbanked masses access to financial services.
Sustainable thematic funds, increasingly specialized, enable investors to target companies according to very specific criteria.
Mission-Related Investment, a practice that aims to align investment against a foundation’s mission, is gaining ground, seeking to maximize impact. Alongside donations, new financial mechanisms – such as Social Impact Bonds – are emerging to increase the long-term feasibility of social actions.
blockchain enables everyone to transfer liquidity to other individuals, without relying on a centralized intermediary. The technology makes financial services more accessible and affordable. It improves transparency and cuts transaction costs.
The development of a digital identity based on unconventional data simplifies access to financial services for migrants who do not possess a passport.
Pension funds play a major, pioneering role in shareholder engagement. They leverage their influence to lead listed companies towards more sustainable practices. Through them, ordinary people’s savings bring change in the corporate world.
Super-connected and concerned about sustainability, the millennials are natural customers of the innovations offered by sustainable finance.