James Alexander
CEO, UKSIF
The unexpected and profound impact of COVID-19 on all of our lives is the overarching narrative of 2020, now we need to focus on how we recover in 2021.
The global pandemic has affected so much of our lives. However, with thoughtful policy interventions, flows of finance and an approved vaccine, the recovery of our communities, our businesses and our society can be the story of 2021. How this is financed, must become a success story for the UK’s growing sustainable investment and finance sector.
Changing public mood
There is a growing recognition amongst investors, consumers and policy makers that our investments must serve a wider societal purpose whilst building wealth.
Research commissioned by UKSIF – the UK Sustainable Investment and Finance Association – for 2020’s Good Money Week captured the public mood for a better future built on the things we value.
There is a growing recognition amongst investors, consumers and policy makers that our investments must serve a wider societal purpose whilst building wealth.
When questioned on how the recovery should be enacted, 69% of British people want the UK to prioritise lowering emissions, ensuring the COVID-19 recovery contributes to the Paris Agreement’s goal of halving emissions by 2030. They also want net zero to be reached by 2050 at the latest.
Investors are leading the charge
Big investors committed to supporting sustainable companies and projects are an essential contributor to a green and fair COVID-19 recovery. Major investors have warned they will use their voting power against companies with insufficient board and management diversity. The UN’s Race to Zero is rallying support from investors and companies to build momentum on decarbonisation of the economy.
The Government has announced that the duty of investors to disclose investment risks related to climate change will soon become mandatory. Furthermore, responding to investor demand, a government green bond will shortly be issued, raising capital to finance the green recovery.
More action is needed, and the pace must accelerate, however the foundations exist for the finance sector to have a very positive impact on the COVID-19 recovery.
Clean slate, green slate
‘Build back better’ has become a mantra for the creation of a green and fair future as we consider our destiny for the years after COVID-19. The UK must continue to follow the public mood, the science and the economics.
Taking inspiration from Good Money Week’s ‘Clean Slate, Green Slate’ call to action, a green recovery propelled by sustainable finance will generate millions of jobs and build an economy fit for the future. It will help avert catastrophic climate change, and further enhance the UK’s position as a global leader in sustainable finance and investment.