Finance leaders convene in Scotland to develop green solutions for global goals

Scotland has been chosen as the host country in recognition of its growing reputation as a leader in the ethical finance debate.

The two-day Finance for Nature Global Summit brings together Government officials, financial institutions, consumer goods corporations, supply chain intermediaries and conservation organisations to explore new investment ideas aligned with the UN Sustainable Development Goals (SDGs).

The event has been arranged by the United Nations Development Programme (UNDP) and Scottish Government-backed Global Ethical Finance Initiative (GEFI), together with the New York Declaration on Forests Global Platform, and is hosted by independent investment manager Baillie Gifford.

The summit comes after Scottish First Minister Nicola Sturgeon said the world is facing a climate emergency.

Recent weeks have seen a renewed sense of urgency in tackling climate change, following a visit to the UK by teenage activist Greta Thunberg and protests by environmental group Extinction Rebellion.

According to the World Economic Forum’s 2019 Global Risks Report, half of the top global risks relate to the environment and climate change and have a material impact on a company’s operational costs, reputation, risk and profitability. 

The SDGs, which reflect the aspirations of people around the world, provide a global framework for businesses and financial institutions to address these challenges.

With an estimated US$ 2.4trillion annual shortfall in the investment required to achieve the 2030 target there is an urgent need for private sector finance.
Despite growing interest, a fraction of the worldwide invested assets are currently aligned to the SDGs. 

The Finance for Nature Global Summit will seek to develop and shape innovative financial instruments to mitigate complex risk, particularly from climate change.

The summit is part of a pioneering $1 million two-year programme of collaboration aimed at mobilising private capital for the SDGs that was announced by UNDP and Scottish Government in October 2018.  

Participants include senior representatives from UNDP, Scottish / UK Governments, the ex finance minister of Costa Rica, leading corporates (including Tesco, Mars, Unilever, Nestle and Kering – Gucci/YSL), nature-aligned organisations (including WWF) and global financial institutions (including Aberdeen Standard, Baillie Gifford, Bank of Ireland, RBS, Barclays, Scottish Widows, and HSBC).

Omar Shaikh, founder of the Edinburgh-based Global Ethical Finance Initiative (GEFI), said: “Hosting this event in Scotland is recognition of our growing reputation as a leader in convening the ethical finance debate.

“By building finance-related partnerships in support of investments aligned with the UN’s sustainable development goals, we hope to demonstrate genuine impact and address the biggest challenge facing the world today.”

Andrew Cave, head of governance and sustainability at Baillie Gifford, said: “As long-term investors, we understand the importance of considering sustainability issues in the investment process. Therefore, we are delighted to support this important event.”

Jamison Ervin, the UNDP’s global programme on nature for development manager said: “The recent UN report on nature issued a clarion call regarding our global biodiversity crisis. This summit helps us understand how private sector capital can accelerate nature-friendly growth while also catalysing an inclusive and sustainable future. We need a new economic model, and where better to look for this model than Scotland.”