Recognising the importance of sustainable investing, the UK and China have been working closely to encourage the growth of green and sustainable finance across the financial services industry under the UK-China Green Finance Taskforce, established in 2017. The taskforce initiated the UK-China ESG Leaders Forum (ELF) in early 2021. The Forum is a practitioner-led initiative to further embed ESG integration into the UK and Chinese investment community and to promote best practice to support British and Chinese asset owners and managers on their transition journey to sustainable asset allocation.
On the 28th October, the ESG Leaders Forum released a report titled “Scaling Sustainable Solutions – Public and Private Markets.” Combining input from 28 asset owners and asset managers, this report showcases best practices and real world actions for scaling sustainable solutions. The report is jointly developed by City of London Corporation, Mercer, GoalsFirst and Three Hills Capital Partners.
The report suggests that to achieve net zero goals, the investment management sector needs to combine outcomes and actions.
Sustainable solutions will reach scale when net zero goal setting is widespread and accompanied by clear outcomes and credible targets.
Taking a whole of portfolio approach is crucial to unlocking the inherent scale of fixed income markets and learning from leading impact frameworks within private markets, to fully realise the potential of investors’ portfolios.
It is important for the investment management community to work together to create the best solutions, taking a collaborative prototype approach to solution development.
The investment management sector must consider beneficiaries’ long-term goals in solution design and adopt a multi-disciplinaryapproach to creating innovative strategies and breakthrough tools.
The report is one of two that the ELF have released. The second ''The Value Creation of Active Engagement,'' suggests that the creation of a transition map is important for both global players and emerging market leaders, like China, to drive positive social, environmental and market outcomes and to help ensure an effective sustainable transition for their economies. To access this report please visit this page.