Survey: 80% of asset managers, asset owners see sustainability as path for pursuing growth opportunities
A majority (80%) of asset managers and asset owners see sustainability as a path for ...
UNDP: Green bonds surpass $1 trillion in annual issuance
Green bonds have surpassed $1 trillion in annual issuance, showing the financial viability of sustainability-focused products, Director of the Bureau for Policy and Program Support of the according to the United Nations Development Program (UNDP) Marcos Neto wrote.
Nature-based solutions — such as forest conservation and land restoration — are gaining traction as investment opportunities, offering both environmental and financial returns.
Similarly, sustainability-linked loans are transforming corporate finance by tying interest rates to environmental performance.
The UNDP supports these innovations by providing tools to help institutions align their investments with sustainability goals. The SDG Investor Platform offers market intelligence on opportunities like renewable energy and biodiversity conservation, where financial institutions can achieve both returns and positive environmental impact.
These innovations show that sustainability is not only about managing risk — it’s about seizing new opportunities. Financial institutions that innovate will not only protect their balance sheets but also access new growth markets in an increasingly sustainability-driven economy.
The path forward for financial institutions is clear:
Neto wrote that there are three key points for financial institutions to shift towards sustainability, stressing that the path is clear for attaining this goal.
First, build internal systems to measure and manage environmental and social impacts — essential for mitigating long-term risks.
Second, integrate sustainability metrics into core risk frameworks, ensuring environmental factors guide decisions.
Finally, innovate financial products, such as green bonds and nature-based solutions, to channel capital toward sustainable outcomes.
As global leaders gather for the World Economic Forum’s annual meetings in Davos in January, financial institutions stand at a turning point. The tools are in place, the business case is proven, and the consequences of inaction are undeniable.
The future of finance belongs to those who turn environmental and social challenges into opportunities. The question is not if finance will transform — but who will lead the way. Those who act now will not only safeguard their balance sheets but will also seize the immense possibilities of a sustainable, resilient global economy.
UNDP is committed to helping financial leaders navigate this transformation, providing guidance, frameworks and insights to drive the bold, transformative leadership that is needed today.
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