Reference. UN Global Compact with reference Accelerating Innovation in Sustainable Finance
“At the request of the Secretary-General, the Global Compact researched ways the UN can help increase the flow of private and capital investment towards achieving SDG, ultimately to deliver sustainable economic development for countries and people everywhere”
The report provides a basic start and suggestions of sculpturing innovation for funding and calls for ideas and suggestions for innovative opportunity types of ideas and transformation funding for SDG which overlap with the subject area of this newsletter of World Common Purpose Future (WCPF) of Ecological Future of Growth Limits of Net Zero GHG within the futures of environment, nature, demand and supply and the aim is to work with the UN Global Compact to advance funding for the impactful ideas of an Ecological Future. The aim is to develop a coalition of impact change leaders, pushing the knowledge of practices of digital and human roles and analytics where funding and sponsorship is made accessible for large scale segment scalable digital integrative solutions through ready to fund groups that have priorities within the SDGs, and particularly the overlap with an Ecological future.
How does this report help, “deliver sustainable economic development for countries and people everywhere” and move towards a better practice of standards and differentiations? Let’s look at some of the concepts and ideas described in the report. For this version report we want to base this on practices based in US and the EU, looking for investment and financing opportunities, leaders, policies and standards and stakeholders within these regions to result in material outcomes. There might be some important aspects of the report not mentioned but as mentioned this is a initial perspective for building a funding practice on top of this report.
The issues and opportunities cover finance and products and open practices for innovation in ideas and transformation for a better WCPF [Ecological Future] fit rallying people, communities, groups, societies, segments [cities | states | nations] through the purpose of the UN Global Compact and the support they can tap into and as touched on be the Accelerating Innovation in Sustainable Finance report. Some issues that could be addressed but not limited to are:
Current World of Funds and Campaigns of disjointed value and returns
Future World of Funds for Smart Practices of more role intelligence
Common Meaning Language Elements within standard Ecological Practice
Scaling across segment and practices
Democratization of Capital for Practices
Low Return Stagnant Funds, or Long-Term funds with an uncertain Future
Sustainability Finance
Financing Clean Energy, Financial Institutions and Agriculture
A Sustainability Currency
Long Term Value and Return Ideas Calculation
Private Sector investment can truly dwarf public investment especially when looking at individuals, businesses, the accumulated wealth in different funds from Black rock to Vanguard to Ceres, to foundations and philanthropies, that only touch the surface. Bringing all these under a WCPF [Ecological Future] Fit is a call to action long overdue that will also ensure their own destinies and legacies. Once these investments start to prove themselves leveraging will create an even bigger pool for sustainable investments.
Sustainable Finance should be highly integrated into economic growth as it not only needs to look at yearly GDP figures but also WCPF {Ecological [Growth Limit]] improvements or degradations and impacting a nations rating focusing on GHG and Climate change with factors that impact, starting with the economic fundamentals of supply and demand and of which environment and nature are an additional skin layer and need to be compensated for and included in the pricing of cost and discount as all 4 futures will co-exist equally. That is, from our own demand choices to our roles of responsibility in business we now need to be aware of these 4 futures and their co-existing impact on each other when agreeing on an exchange transaction; this would involve building new ideas and transforming existing transactional systems and not least would be included in decisions of sustainability in finance and investments.
Can the WCPF [Ecological [Growth Limits [Net Zero GHG]]] fit provide the common objective and approach of unlocking private capital for both developed and undeveloped markets to bring together a model and strategy for the entire architecture of the financial system (including banks, investors, rating agencies, governments and regulators, foundations, …) and how would they be differentiated within each developed or undeveloped region or between sovereign governance and global and local laws?
There are already Ecological Choices as regards to priorities like Clean Energy Transition, Financial Institutions and Agriculture, including: The SDG Loan Fund, Financing Clean Energy in emerging and undeveloped economies through the Climate Investment Fund for which the World Bank acts as Trustee [this includes projects like Global Energy Storage Program, Clean Technology Fund] for displacing fossil fuel and providing households with clean energy, at COP28 in 2023, multilateral development banks and international organizations announced the Joint Declaration and Task Force on Credit Enhancement of Sustainability-Linked Sovereign Financing for Nature and Climate, …
Transparency: “The establishment of the International Sustainability Standards Board (ISSB) in 2021 and the release of its inaugural standards in 2023 marked a good first step towards a global baseline for sustainability reporting as it addresses demands from investors for comparable and accurate disclosure on “sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s prospects.” Similarly, the European Commission took a major step by adopting the European Sustainability Reporting Standards (ESRS), which require large and publicly listed companies operating in the EU to disclose information for investors to understand the sustainability impact of the companies in which they invest. The U.S. Securities and Exchange Commission has also moved to enhance and standardize climate-related disclosures by publicly listed companies.
“There’s an absence of shared definitions and global standards for financial markets, discouraging investment in unfamiliar regions and technologies. The report calls upon regulators to mandate minimum sustainability disclosure requirements and to consider offering incentives for companies that contribute to data transparency efforts. It also recommends judicious use of AI and open-source platforms to help fill the gaps in data.”
Risk and return: “There’s too often a mismatch between risk and returns in sustainable finance, especially in countries without a well-established infrastructure for financial markets. The report recommends ways to more accurately assess those risks and also tactics to mitigate them – such as spreading out risk across investor portfolios, having philanthropic funds take first-loss positions and including sustainable investments with syndication of structured finance products.”
Integration: “Sustainability isn’t universally accepted in the business world, and in some instances, there has been a backlash against the related concept of incorporating ESG principles into financial practices. The study calls upon national Governments to link sustainability outcomes to financial regulation, including in securities laws and in statutes outlining fiduciary responsibility.”
Some Questions: The reference document represents a starting reference for discussion but can meet its value through the eyes of a real case and become part of a smart practice for lowering the risk of funding for significant long-term innovation that matters, exploring receiver questions further. The questions are, how serious is this in terms of creating a support practice, what pathways currently represented and that should be represented, agreement with the “As-Is” supporters to support new more appropriate sustainable models possible through sharing risk and looking at their respective value currency concerns and comfort periods of financing, different blending options for more purpose projects and initiatives, investment based on a WCPF [Ecological Future] sustainability currency and factors, and other fundamental questions.