--- title: The Future of Sustainable Finance description: Director of Innovation Donato Calace summarizes the key points raised by the expert panel at the Sustainable Finance meeting focused on the G7, and what it means for the corporate audience. image: https://blog.datamaran.organic.dev/hubfs/Imported_Blog_Media/Artboard-1.png --- ![Datamaran Logo](https://pages.datamaran.com/hs-fs/hubfs/Datamaran%20Theme%20-%202022/Images/Datamaran%20Logo.png?width=216&height=48&name=Datamaran%20Logo.png) ![Datamaran Black Logo](https://pages.datamaran.com/hs-fs/hubfs/Datamaran%20Theme%20-%202022/Images/Datamaran%20Black%20Logo.png?width=216&height=48&name=Datamaran%20Black%20Logo.png) Login Login # The Future of Sustainable Finance Author: [ Donato Calace ](https://blog.datamaran.organic.dev/author/donato-calace) February 23 2018 ![Reading time icon](https://blog.datamaran.organic.dev/hubfs/raw_assets/public/Datamaran%20Theme%20-%202022/images/module-icons/clock.svg) 2 min read   Last week I attended the London meeting of the The Future of Sustainable Finance at the G7. The panel of knowledgable experts provided a fascinating discussion. It touched on many of the areas raised in the [detailed 2018 report by the EU’s High-Level Expert Group on Sustainable Finance.](https://ec.europa.eu/info/sites/info/files/180131-sustainable-finance-final-report_en.pdf)   For financial institutions, the report indicates the required route to make sustainable finance successful. In this blog I continue that thought with a summary of several ideas raised by a selection of the speakers: Sir Roger Gifford, the Bank of England’s Michael Sheren, and former Member of Parliament Arlene McCarthy OBE.   Michael Sheren suggests that the way we’ll move the needle is to prove the links between ESG and risk. One of the challenges in the coming years is to convince bankers and investors to move capital towards ‘green projects’. Fortunately, there is now a lot of evidence to help this process, we simply need to put the case forward in their language.   There are some encouraging signs, too. The Bank of America recommends investing in stocks with good ESG performance as they are less likely to go bankrupt. Other financial institutions are following a similar trend: Hermes, Aviva, AXA, and Norges Bank are all orientated towards longer term ESG portfolios.  ## Sustainability issues are now priority Arlene McCarthy set our minds back to 2008. The priority was clear then, she said: fix the financial system. The EU needed to ensure financial stability, regain credibility and the trust of European people. At this stage, sustainability was a secondary motivation.  However, the mood is very different now. The EU felt, said McCarthy, that the time had come to step in with a clear mandate in mind: ’it's time for action’.   The work of the HLEG is testament to this. The report provides clear operating guidance for sustainable finance initiatives, such as: **upgrading disclosures** to make **sustainability opportunities and risks transparent**; enabling retail investors to invest in sustainable finance opportunities.   It was exciting to hear the connection highlighted between opportunity and risk. The vision laid out in this  report is undoubtedly different compared to a decade ago.    The HLEG recommendations are not only part of a toolkit to better manage financial risk, but they are pushing forward the principle that the responsibility and fiduciary duty of the financial actors (both investors and authorities) are broader and include economic and ESG elements.  The creation of the EU green taxonomy to define which products are 'green', and the introduction of the 'Green supporting factor' (a practical example of policy implementation of the relationship between ESG and risk) are concrete steps in this direction. The HLEG recommends EU legislation (including the NFR directive) to align to the SDGs, the TCFD, and [French Article 173](https://www.ipe.com/countries/france/france-aims-high-with-first-ever-investor-climate-reporting-law/10011722.fullarticle) (client only Datamaran link [here](https://pro.datamaran.com/#!/observe/share/1032)).    As Sir Roger Gifford rightfully concluded, green finance is about risk mitigation, profitability and allocated finance. The principles of green (or rather sustainable) finance encourage lending on the basis of projects. This makes lending less risky - the purpose of the money is clear.  This direction of action calls for a deeper definition of materiality - one that ensures a stronger connection between the issues and the financial consequences. In this sense, the HLEG recommends that the EU follows the same example as SASB in the US.   We encourage our corporate clients to keep the dialogue open, and report the links they've made between the risk and opportunities within sustainable finance programs. If you'd like to continue the conversation please get in touch: [donato@erevalue.com](mailto:%20donato@erevalue.com)   ### The Ultimate Guide to Double Materiality - How to get started in 6 simple steps New rules demand the C-suite demonstrate they have an ESG governance infrastructure in place, ensuring their oversight and monitoring of the organization’s material sustainability impacts, risks and opportunities. **Consequently, business leaders need to have a clear and defensible position on their material ESG issues.** Download this free ebook to explore regulatory requirements and best practices for conducting a double materiality assessment. We'd love to keep in touch. By submitting this form you agree to receive the latest news, content & updates from us. You can withdraw consent by unsubscribing at any time. Check our [privacy policy](https://blog.datamaran.organic.dev/the-future-of-sustainable-finance#) and our [terms of use](https://blog.datamaran.organic.dev/the-future-of-sustainable-finance#) ## You may also be interested in #### Article #### [ESG: the journey from best guess to best informed](https://blog.datamaran.organic.dev/esg-the-journey-from-best-guess-to-best-informed) Datamaran’s C-Suite Forum at GreenBiz23 explored the role of technology and data in the evolving ESG landscape during the second-panel session. ![Reading time icon](https://blog.datamaran.organic.dev/hubfs/raw_assets/public/Datamaran%20Theme%20-%202022/images/module-icons/clock.svg) 7 min read [ Read More ](https://blog.datamaran.organic.dev/esg-the-journey-from-best-guess-to-best-informed) #### Article #### [Insights from ESG leaders: Tackling ESG issues in a global pharmaceutical company](https://blog.datamaran.organic.dev/insights-from-esg-leaders-tackling-esg-issues-in-a-global-pharmaceutical-company) At GreenBiz23 Datamaran spoke with Stuart Block, Director of ESG Reporting and Analytics, at Cardinal Health, a leading distributor of pharmaceuticals and a global manufacturer of medical and... ![Reading time icon](https://blog.datamaran.organic.dev/hubfs/raw_assets/public/Datamaran%20Theme%20-%202022/images/module-icons/clock.svg) 7 min read [ Read More ](https://blog.datamaran.organic.dev/insights-from-esg-leaders-tackling-esg-issues-in-a-global-pharmaceutical-company) #### Article #### [4 Opportunities to Create Value and Avoid Risk with AI](https://blog.datamaran.organic.dev/4-opportunities-to-create-value-with-ai) At Sustainable Brands New Metrics 2017, Datamaran CEO Marjella Alma presented on how some of the world's leading companies benefit from leveraging a data-driven approach for their materiality and... ![Reading time icon](https://blog.datamaran.organic.dev/hubfs/raw_assets/public/Datamaran%20Theme%20-%202022/images/module-icons/clock.svg) 1 min read [ Read More ](https://blog.datamaran.organic.dev/4-opportunities-to-create-value-with-ai) #### Article #### [New Datamaran Academy gives practical ESG skills to the C-Suite](https://blog.datamaran.organic.dev/new-datamaran-academy-gives-practical-esg-skills-to-the-c-suite) Datamaran’s new academy will help close the ESG skill gap and to empower leaders to lead on ESG. ![Reading time icon](https://blog.datamaran.organic.dev/hubfs/raw_assets/public/Datamaran%20Theme%20-%202022/images/module-icons/clock.svg) 2 min read [ Read More ](https://blog.datamaran.organic.dev/new-datamaran-academy-gives-practical-esg-skills-to-the-c-suite) [![SR Logo Dark](https://pages.datamaran.com/hs-fs/hubfs/Datamaran%20Theme%20-%202022/Images/SR%20Logo%20Dark.png?width=203&height=60&name=SR%20Logo%20Dark.png) ](https://datamaran.organic.dev) - - - - [Cookie Policy ](https://blog.datamaran.organic.dev/the-future-of-sustainable-finance#) | [Privacy Policy ](https://blog.datamaran.organic.dev/the-future-of-sustainable-finance#) | [Terms Of Use ](https://blog.datamaran.organic.dev/the-future-of-sustainable-finance#) Copyright 2026 Datamaran, all rights reserved. - [ Product ](https://datamaran.organic.dev/esg-software) - [ Case Studies ](https://blog.datamaran.organic.dev/customer-stories) - [ Events ](https://blog.datamaran.organic.dev/events) [ Book a demo ](https://share.hsforms.com/1j8ZyABxuS4mVd7w3XbfJaA2dt38) ##### Resources & Support ##### Company ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Donato Calace", "url" : "https://blog.datamaran.organic.dev/author/donato-calace" }, "dateModified" : "2023-07-02T19:08:32.587Z", "datePublished" : "2018-02-23T05:00:00.000Z", "headline" : "The Future of Sustainable Finance", "image" : [ "https://blog.datamaran.organic.dev/hubfs/Imported_Blog_Media/Artboard-1.png" ], "mainEntityOfPage" : { "@id" : "https://blog.datamaran.organic.dev/the-future-of-sustainable-finance", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject" } } } ```