Transitioning to a just economy will require leadership, commitment and money. This is why the second edition of Sustainable Views is dedicated to the role of finance in swaying corporate behaviour and the extent to which financial institutions themselves need to address their own sustainability agendas.
Banks not only lend to companies, from massive conglomerates to innovative start-ups, they also structure corporate equity and debt to make it attractive to investors. As a result, their influence on business and the economy cannot be understated. But this influence is perceived as negative by many people.
Veteran anti-corruption campaigner Frank Vogl writes that since the Great Depression and World War Two, short-termism has impaired bankers’ moral compasses. Will the fallout from Covid-19 and the prospect of climate disaster lead to a change in philosophy at the top?
Santander executive chairman Ana Botin leads one of the world’s largest banks. She addresses the challenge many institutions face in trying to reduce funding to high polluters as it can, perversely, cause social harm in developing countries.
At the same time, financing to high polluters has changed little since the 2015 Paris Agreement on climate change, according to environmental group Rainforest Action Network. Are the world’s top lenders doing enough?
The debate over the role finance needs to play in creating a fairer and more sustainable economy is set to continue. And we hope you will join it.
Let us know your thoughts on any of the subjects addressed this month and we could publish your feedback in the next edition. Email your own sustainable views to silvia.pavoni@ft.com or the team at sustainable.views@ft.com
