Bringing sustainable finance to the consumer level
Although the sustainable finance market has grown considerably over the past 10 years, there is still a long way to go to make it the primary vehicle for change.
It is estimated that, in order to achieve the SDGs by 2030, investments between $5tn and $7tn must be made each year. Despite the rapid growth of sustainable finance, the majority of this has been from institutional investors. In 2018, institutional investors held 75% of sustainable finance investments while the same figure for retail investors was only 25%.
While the interest in sustainable finance from regulators, policy makers and institutional investors is welcome, we now need to address consumer demand which is another important driver to ultimately reshape the banking sector to transition to a sustainable finance model.
It is vital that we reach these retail customers and engage them on the sustainable finance options available to them. The current crusade against plastic has demonstrated how a single issue can rise to the top of the consumer agenda in less than three years. Targeted use of media channels, visualisation and simplification can help banks present sustainable finance as the next big thing for individuals committed to saving the planet.
The challenge: How might we transform the topic of sustainable finance into a relatable issue that consumers can understand and champion?