How Green Is Your Finance?

By Guest Blogger

Interest has been growing in how to structure financial systems to support sustainability.  The term “green finance” is used to refer to financial instruments, services or activity which result in positive change for the environment and society over the long term.

The drive to green finance is being driven by investor demand; ambitious societal objectives (such as the Paris agreement and the Sustainable Development Goals); the rise of new financial instruments (such as green bonds); and improved understanding of risk through enhanced analytics and reporting.

Green finance is starting to move from a niche product to a mainstream activity, with financial centres around the world vying with each other to attract green money.

So far, so good. But how are the various financial centres doing?

The Global Green Finance Index (GGFI) is an exciting initiative from Long Finance in association with Finance Watch and the Mava Foundation. With the Global Green Finance Index we hope to shine a light on green finance activity by ranking the world’s financial centres on the quality and depth of their green finance offerings.

The index will be constructed using a number of existing indices in combination with a survey of senior industry figures from around the world. Full details of the methodology can be found here.

The intention behind the GGFI is to:

  • Define green financing and green finance criteria;
  • Enable financial centres to enhance the range and depth of their offerings;
  • Showcase and share best practice in green financing; and
  • Create a “race to the top” which will catalyse the growth of green finance, improve policy makers’ and other stakeholders’ understanding of what makes, a financial centre ‘green’ and shape the financial system to support, sustainability goals.

You can participate in the survey here. We would love to have as wide a range of views as is possible to improve the richness of the data available.

We aim to publish the initial Global Green Finance Index in Spring 2018 with further editions following at six month intervals to build a picture of how financial centres are responding to the challenge of making a difference to the sustainability of our economies.

Prof Micael Mainelli – Z/Yen Group Ltd


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