Sustainable finance is not simply an opportunity; it is a pressing necessity. The consequences of climate inaction are becoming ever more evident, with record-breaking losses in 2024. It was the fifth consecutive year where insured losses from natural catastrophes have exceeded 100 billion dollars. The role of finance in addressing long-term risks is clearer than ever, at least to many. These risks are real and tangible. At least two-thirds of insured losses occurred in the United States in 2024, driven by back-to-back hurricanes. The increasing frequency and intensity of extreme weather events seems not to be driving the kind of global response that is needed.
The focus must now be on moving forward with some purpose. The need for meaningful, lasting change is urgent, and quick fixes that fail to account for the full picture will only lead to further challenges down the road.
The Institute of Sustainability and Environmental Professionals (ISEP) is committed to advancing sustainable finance by supporting professional development, promoting rigorous sustainability standards and fostering collaboration between sustainability professionals and financial institutions. ISEP is actively working to ensure that finance continues to drive positive environmental and social outcomes through advocacy, training programmes and partnerships
This guide aims to provide a starting point and some helpful guidance in understanding the imperative to integrate long-term environmental and social risks into financial decision-making, so that those interested in sustainable finance, particularly sustainability professionals, have a place to start and a reliable go-to resource. The current guide builds on the foundations laid by the 2018 IEMA Sustainable Finance Primer, which set the wheels in motion.
In the face of shifting political climates, businesses may find themselves tempted to align with those who resist climate action, prioritising short-term alliances. Yet such choices may come at the expense of the long-term health of our planet and future generations. The drive to a more sustainable future has begun, and while it may stall or encounter blocks along the way, it cannot be stopped.
