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South Pole: The skills needed for sustainable finance
After the 2008/9 global financial crisis, the 2012 Kay Report recommended a much-needed shift in the culture of UK stock market participants, including a more long-term focus with aligned incentives. Despite this report, short-termism remains prevalent in financial markets around the world. For example, high-frequency trading ensures that huge financial values are attached to nanoseconds.
The persistence of short term thinking runs the risk of driving us once again into crisis. If short-term profits are prioritised above all else, our planet's resources will be over-consumed without the time to regenerate. Sustainable finance offers an approach that may help us avoid future calamities, not to mention long-term topics like climate change. Negative environmental impacts, such as carbon emissions, are starting to be measured and considered as part of lending and investment decisions. The financial markets and the people who work in them are in larger numbers grappling with long-term topics like climate change and the Paris Agreement.
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Article and photo source: Press Release / Newsletter