Leaders from business, start-ups, academia and research institutions are meeting at the Xynteo Exchange/Norway to advance a new growth model fit for the 21st century. At the heart of the Exchange is a series of Studios, where we will bring leaders together to try to develop commercial solutions to human problems.
Achieving the Sustainable Development Goals (SDGs), a set of 17 global targets for social, environmental and economic development, requires an estimated US$3.3-4.5 trillion of investment annually through 2030 in developing countries alone, according to the United Nations Conference on Trade and Development (UNCTAD). The annual investment gap is a sizeable US$2.5 trillion, with investments required in developed economies adding to that gap. Leveraging private capital at scale is essential, as public capital alone is hugely insufficient to meet the SDGs.
We need to rethink the norms, incentives and decision-making processes that guide actors within the financial system if we are to finance the SDGs. In short, we need to renew the governance of the financial system. Out-dated governance holds back progress at many levels of the financial system, which is essential to channelling capital at the vast scale required to meet the SDGs.
Future-fit finance requires new measurements of progress, improved disclosure and data, and closer engagement between finance sector players, companies and consumers on the SDGs. Our task at the studio is to identify how the finance sector and businesses can implement governance models that incentivise capital to flow at scale to investments aligned with the Sustainable Development Goals (SDGs).
On day one, we will interrogate the complex nature of capital flow to support the SDGs, and explore how our capabilities could be brought to bear to deliver future-fit finance models. On day two, we will identify potential interventions within these problem areas, with the aim of developing early-stage concepts for projects that can deliver both human and commercial value. Finally, we will select the most promising concepts to present in the Marketplace.
Location: Felix Conference Centre, Bryggetorget 3, 0250 Oslo
Svein TORE HOLSETHER
President and CEO, Yara International
Traditional thinking is often keep doing things the way that they have always been done, not to rock the boat so to speak. Maybe that has worked so far. But if we choose to sit still in that boat, it will capsize!
During the studio, participants will split into five breakout groups to roll up their sleeves and work together on different challenges related to future-fit finance. Read more about each of the problems we’ll be tackling together below:
HOLISTIC MEASUREMENTS OF WEALTH
Current measurements of wealth at the country-level and business level provide incomplete information on total economic, environmental and social progress.
The challenge: How might we measure wealth more holistically for societies, businesses and individuals?
FINANCING THE LOW-CARBON BUSINESS TRANSITION
Green finance offerings need to scale and align with climate targets, as decarbonisation rates remains insufficient to limit global warming to at least 2 degrees Celsius, the global climate target agreed in 2015.
The challenge: How might the finance sector better enable companies to decarbonise?
COMMUNICATING SUSTAINABILITY IMPACTS TO FINANCIAL CONSUMERS
Customers increasingly want their savings, pensions and investments to have a positive impact in addition to offering a competitive financial return, but limited information about their options prevents them from translating desire into practice on a significant scale.
The challenge: How might we better communicate to customers the contribution their investments make to the SDGs?
MEASURING COMPANIES’ IMPACT ON THE SUSTAINABLE DEVELOPMENT GOALS (SDGS)
Corporate disclosure of metrics relating to the SDGs is inadequate for financial sector stakeholders to easily compare companies’ relative SDG impacts.
The challenge: How might we access clear, credible data on companies’ impact on the SDGs?
ADOPTING CIRCULAR BUSINESS MODELS
Companies must evolve business models to capture the full value of a circular economy and truly decouple growth from resource use.
The challenge: How might we incentivise company boards to adopt circular business models?
Banks must take bold action to fight climate change. This is how they can do it (WEF) ➝
Investing in the global green economy. Busting common myths. Executive summary (FTSE Russell) ➝
Green investor surge: 400 global asset managers pledge to step up climate efforts (Business Green) ➝
Is information key to increasing sustainable investments? (Schroders) ➝
How to transform apocalypse fatigue into action on global warming (TEDGlobal) ➝
Pensions industry is missing a trick not talking to millennial savers about the impact of their investments (ShareAction) ➝
Good life goals: how can individuals engage with the Sustainable Development Goals? (Business Green) ➝
LONDON . UK
32 Wigmore Street,
London, W1U 2RP, UK
T: +44 (020) 7 016 0763
OSLO . NORWAY
Henrik Ibsens gate 100,
0255 Oslo, Norway
T: +47 (24) 14 02 30
NEW DELHI . INDIA
Regus Wave, M 4 (first level)
South Extension II, Block M,
New Delhi 110049
MUMBAI . INDIA
WeWork, C-20, G Block
Bandra Kurla Complex, Bandra East
Mumbai, Maharashtra 400051