 |
| |
Science, Sustainability and Finance: A Necessary Triad | |
| Staff Writer |
The technological advancements in the last ten years have brought with it a strain on the scientific community as it has issued multiple warnings on the need for a more holistic development. The sustainability of ecosystems means that the governments around the world must prioritize sustainability.
 |
Innovation is the child of necessity, which in effect means that sustainable development has birthed a more sustainable finance. As Alice Korngold states, “Global corporations have the human capital, the financial resources, the technology, the international footprint, the power of markets and the profit motivation to build a better world. NGOs will be essential partners...Governments will be essential partners...By engaging together through an iterative process, we will achieve "
Financial sustainability has moved beyond CSR to a more lucrative investment option in recent years given the growing need for asset management to be in sync with the UN’s Sustainable Development Goals, driving investment and disinvestment decisions.
In a special message in the 2016 UAE SDG Report, His Highness Sheikh Abdullah bin Zayed Al Nahyan gave a special message to the people of UAE and the world at large, “The goals (of the UAE) enshrine a new way of understanding and undertaking development in a holistic manner.
“No longer is it solely a measure of how much people earn or how long they live, but about how they experience life.
“It takes into account a tremendous range of factors, from the plastic floating in their oceans, through mental well-being and happiness, to their ownership of a mobile phone. Moreover, the new definition puts the emphasis on long term development.
 |
“Development that cannot provide for future generations economically, environmentally, and socially, is not true development,” he said.
Six years and sustained efforts later, the Abu Dhabi Global Market now in its fourth edition pledged to be a carbon neutral event and platform this year. H.E. Ahmed Jasim Al Zaabi, Chairman of ADGM commented: “It is ADGM’s mandate and one of its key priorities in facilitating sustainable financing and responsible investments, as well as, addressing climate change and sustainability concerns that affect the financial sector, the economy and the long-term well-being of the UAE. The UAE has always been proactive and forward-thinking in its engagement and actions towards sustainability as demonstrated by its Net Zero 2050 Strategic Initiative and being the convener of COP28.”
In the UAE Vision 2021, H.H. Sheikh Mohammed bin Rashid Al Maktoum,
Vice-President and Prime Minister of the UAE and Ruler of Dubai has said, “In a strong and safe union, knowledgeable and innovative Emiratis will confidently build a competitive and resilient economy. They will thrive as a cohesive society bonded to its identity and enjoy the highest standards of living within a nurturing and sustainable environment.”
To realise this future, institutional investors and asset managers must be at the fore because sustainable developments must also cater to investor wishes, with the understanding that ESG investments and capital allocation practices and tools are able to enable thematic and impact investing, including low-carbon indices, green bonds, and sustainable funds.
One limited partner in conversation with the Boston Consulting Group for example talked about the other side of the story, “We need to show clients how impact investing increases their returns as opposed to detracting from them.”
A glance at current market trends make it clear that all sectors, whether under social or environmental causes or others, are likely to benefit by sustainable finance.