UNGC And PRI Unite Leaders To Accelerate Sustainable Finance

The United Nations Global Compact (UNGC) and the Principles for Responsible Investment (PRI) successfully organized the Executive Roundtable on Sustainable Finance – Driving Leadership in Sustainable Finance for a Resilient Future at the Orchard Hotel in Singapore. The high-level meeting convened chief executive officers, chief financial officers, and institutional investors who shared a common objective of channelling private and institutional capital into sustainable development, halting biodiversity loss, and bridging the Sustainable Development Goals (SDG) financing gap within the Asia-Pacific region.

With Asia needing an annual financing gap of $1.5 trillion to achieve the SDGs, roundtable discussions centered on new financial mechanisms that can promote inclusive growth, climate resilience, and long-term sustainable development. The forum was in line with the United Nations' Road Map for Financing the 2030 Agenda and highlighted the imperative for private sector leadership in mobilizing capital for the Global South and incorporating sustainability-related considerations into financial decision-making.

The roundtable focused on two key themes that are most important to meeting sustainable finance objectives. The first, Financing for Development, explored ways to expand capital flows to emerging economies and address investment barriers that limit sustainable financial development. The discussion was on how markets can be reconciled with long-term sustainability targets and how companies can collaborate in making sustainable finance a mainstream option. The second theme, Biodiversity & Climate Finance, centered on the incorporation of nature and biodiversity considerations into investment approaches. The leaders discussed means to ensure that capital not only drives economic development but also enhances climate resilience and facilitates ecosystem recovery.

Addressing the event, Neha Das, UN Global Compact Head of Asia & Oceania, stressed the imperative for business leaders to drive sustainable finance forward. She noted that meeting the SDGs requires leadership and tangible action from the private sector. By integrating sustainability into business and investment decisions, she contended, financial institutions and companies can drive faster progress toward a more resilient and inclusive global economy.

David Atkin, PRI CEO, echoed the role of investors in ushering in the sustainable finance transition. He observed that institutional investors have a fiduciary duty to integrate sustainability factors into their investment and ownership policies. In addition to active investor action, Atkin emphasized the importance of an enabling policy environment conducive to sustainable investment. He thanked the UNGC-PRI roundtable participants for creating a critical conversation on how business and financial leadership can contribute to a more sustainable future, not only in Singapore but also globally.

As the discussion progressed, it was evident that closing the SDG financing gap is not merely a matter of corporate goodwill but rather a call for tangible commitments from investors and businesses. The roundtable participants acknowledged that integrating corporate financial planning with sustainability-related considerations is crucial. They demanded greater cooperation with policymakers to overcome regulatory and policy hurdles to sustainable investment. Consistent reporting on biodiversity and climate-related financial risks also came through as a major priority, with businesses and investors recognizing the need for increased transparency in quantifying environmental effects.

The conference ended with a unanimous call to action, calling on financial institutions and corporations to recommit themselves to sustainable finance. With leaders and stakeholders reaffirming their commitment to promoting sustainability in financial decision-making, the roundtable laid the ground for more intensive engagement at future UN Global Compact events. The conversations and takeaways from this event are likely to feed into the continued evolution of sustainable finance solutions in the Asia-Pacific region, affirming the shared commitment to creating a more resilient and sustainable future.