Three Ways for Sustainable Finance Leaders to Step Up - Linda Petrone

Image from Unsplash by Nick Pryde

I recently read an article published in the Environmental Defense Fund + Business, titled How Wall Street can win on Climate in 2021. As a believer in sustainable business and climate policy leadership, this article resonated with me.

We have seen some C-Suite leaders at financial institutions take the initiative to step up their sustainable efforts including:

1. Integrating climate into their core business

This involves being able to alter two things: their approach to capital allocation and their relationship with carbon-intensive industries.

2. Aligning proxy voting with climate goals

In order to fast-track the progress of sustainable investing in 2021, a shift in proxy voting amongst the world’s largest asset managers is impactful.

3. Supporting regulations and policies required to decarbonize.

The last point refers to policies that are mandatory, such as climate risk disclosures from the SEC or emissions standards for carbon-intensive sectors.

I believe that it is crucial for investors to manage both climate risks and opportunities. The benefit is two-fold: profits are maximized and it helps to safeguard the planet.

Further, as discussed in the article, policies, and rules that reduce methane emissions, accelerate electrification, and clean up the electric grid, should all be a focus in 2021.

You can read the original article here.

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