Clients, investors, suppliers and regulators expect financial institutions to play an active role in financing the transition to a circular economy. Firms must therefore do more to incorporate sustainability into their operations and products. Regulation is not the only driver of transformation: Millennials, who are becoming the largest cohort of financial customers, expect real change. And we cannot ignore the potential seismic shift in attitudes that may arise from the COVID-19 pandemic. Firms must set the right tone at the top of the organization, and walk the talk by embedding sustainability throughout their cultures. This requires a focus on purpose, individual accountability, remuneration, and diversity. And integrating sustainability into corporate strategy, rather than viewing it as an add-on.
Read our insights into the trends and opportunities facing sustainable finance: