Rewiring Finance for a Sustainable Economy

This document is a report that discusses the urgent need for a transformation in the financial system to support a sustainable economy. It outlines the polycrisis of global economic, social, and environmental challenges that necessitate strategic private sector action, which could unlock significant economic opportunities. The report identifies three essential shifts required for this transformation: firstly, shifting industrial and financial policy to create clear transition pathways; secondly, changing narratives and mindsets to prioritize value and transformation over compliance; and thirdly, embedding sustainability into core financial structures to enhance the flow of finance towards sustainable initiatives. The authors emphasize that the current financial system is not incentivized to consider sustainability, leading to significant financial risks and missed opportunities. They advocate for a collaborative approach involving various stakeholders to rewire the financial system effectively, ensuring it aligns with sustainability goals and addresses the pressing challenges of climate change and social inequality.