Finance Monthly March 2020 Edition

the same values. Many teenagers are already at the forefront of environmental activism. Millennial consumers, who will inherit wealth worth US$ 16 trillion over the next few decades, are exerting their influence to push financial service companies towards ESG compliant practices. Wealth managers, banks, and other financial institutions have no option but to meet the expectations of this important customer constituency. Last but not least, financing ESG compliant projects helps to diversify the investment portfolio into new growth sectors such as clean and efficient energy. Some financial institutions are taking a lead in adhering to ESG principles in lending and investing. ABN Amro has a comprehensive sustainability strategy focusing on climate change, circular economy and social impact issues. The Bank’s climate change vision aims at financing only “energy label A” real estate by 2030, increasing the share of renewable energy in the energy portfolio to at least 20% by next year, and also doubling sustainably invested assets to €16 billion by that time. It has also built the first bank office based on circular principles in Oosterhout, Netherlands. Another great example is Nordic Investment Bank, which takes sustainable financing very seriously. In addition to investing in the green bonds of companies in various countries, NIB issues its own environmental bonds and invests those proceeds into sustainable projects. The Bank follows corporate governance best practices to achieve several aims, including fighting corruption and money laundering, managing risk, and procuring ethically. The 2030 Agenda for Sustainable Development adopted by UN member nations lists 17 sustainable development goalsaimedat removing poverty, improving health and education, reducing inequality, and fostering growth while addressing climate change and preserving our oceans and forests. This agenda will succeed only if it has support on the ground, at the level of the enterprise. The financial services industry can make a significant contribution to this cause through sustainable lending and investing. “Today, the world of finance and investment is being held accountable to a new standard. And its colour is green.” INVESTMENT - ESG FINANCE 53 www.finance-monthly.com