Finance in Sustainable Transition: A Comparative Review Across Institutional Investors, Asset Managers, Venture Capital, Insurance, and Bonds

Abstract

Since the 2015 Paris COP21 meeting, the financial services industry has increasingly been expected to play a pivotal role in driving the sustainable economic transition. Our review examines and compares the various strategies employed by key segments of this industry—namely institutional investors, asset managers, venture capital firms, insurers, and bond issuers—to foster a more sustainable economy. While our literature review reveals significant industry responses, it also highlights that the voluntary nature of many initiatives and the lack of standardized regulatory frameworks pose considerable challenges to transforming business models in line with sustainability goals. Achieving sustainable finance will ultimately require coordinated and concerted efforts among governments, financial institutions, and nongovernmental organizations.This article is categorized under: Policy and Governance > Multilevel and Transnational Climate Change Governance Policy and Governance > International Policy Framework Policy and Governance > Private Governance of Climate Change