A short history of Sustainable finance - episode #2

 

2000 : Creation of the Carbon Disclosure Project.


This international non-profit organization promotes transparency and helps financial actors (companies, cities, states etc.) measure and disclose their environmental footprint.
It started small, but today, nearly a fifth of global greenhouse gas emissions are reported through CDP


2006 : the United Nations Principles for Responsible Investment (UNPRI).


This association set up by the UN aims to encourage the financial sector to incorporate environmental, social, and governance criteria in its practices.

This international network of investors work together to implement its six aspirational principles, often referenced as "the Principles".

                                       

2014 : the Montreal Carbon Pledge


It is signed by 120 institutional investors. The signatories agree for the first time to measure their carbon footprint. 

At the same time, the Green Bond principles are created. It is a list of best practices for green bonds produced by investment banks. These guidelines are updated each year by the ICMA (International Capital Market Association).

The climax of this movement is the speech of the governor of the Bank of England, Mark Carney (https://www.bankofengland.co.uk/speech/2015/breaking-the-tragedy-of-the-horizon-climate-change-and-financial-stability)

2015 : The paris Agreement

The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP 21 in Paris, on 12 December 2015 and entered into force on 4 November 2016.
Its article 2c is historic for sustainable finance, defining the goal of  Making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.

                                            

 

2017 : Creation of the NGFS

The Banque de France creates the Network for Greening the Financial System (NGFS), a network of central banks and supervisors for the greening of the financial system. This creation is the starting point of an international movement around green and sustainable finance. At the same time, an international network of the financial centers is created: the financial centers for sustainability.

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