This sector is critical to the transformation to a sustainable world, as financial services provide the foundation for all commercial activity.

The way capital is allocated to businesses and individuals – right down to the types of savings, insurance and investment products available - has a major influence on sustainable development.

Our objective in working with this sector is to shift financial resources towards sustainable activities and away from unsustainable ones.

How we work with our partners in the finance sector

We work with our partners to understand how sustainability relates to their own activities and strategy – whether in insurance, investment, fund management or banking. For example, we have recently helped partners to –

• understand how the value of their investment portfolio is affected by climate change, resource constraints and poverty
• develop new financial products to respond to the need for greater sustainability (Read our recent report 'Beyod the Niche' here on ethical financial products on the high street)
• develop a sustainability strategy across their whole business, including direct and indirect impacts
• train staff on how sustainability issues relate to their work

We also work on cross-sector initiatives, with a particular focus on the development of innovative financial instruments to support sustainability. Recent initiatives include -

• Finance for clean technologies – (read our report on clean capital here; find out about the London Accord here)
• Commercial microfinance
• Finance for adaptation to climate change
• Investment in forests - (read about our work on Forest-backed bonds here)
• Embedding sustainability into valuation of assets
• Sustainable property investment
• Sustainable private equity

The London Principles for Sustainable Finance, drawn up by Forum for the Future with support from the City of London Corporation, were launched by Tony Blair at the Johannesburg Earth Summit in 2002. These principles stand the test of time in defining the characteristics of a sustainable financial market. Read more on the London Principles here

Our partners in the financial services sector:

ABN Amro
CDC Group plc
Friends Provident
Morley Fund Management
Nationwide Building Society
Royal and Sun Alliance
Royal Bank of Scotland

More information

Please contact Alice Chapple at a.chapple@forumforthefuture.org.uk.