Angus Clelland

Satya S. Tripathi, Secretary-General of the Global Alliance for a Sustainable Planet and former UN Assistant Secretary General, kicked off the second half of the day with an inspiring keynote.

He offered a compelling critique of our individual responsibility and collective inaction on environmental issues highlighting the disconnect between discussion and meaningful change.

“There’s no dearth of desire to seek change. The only problem is we don’t want to be the change we want to see in others. Until and unless we want that, nothing is going to change,” Satya affirmed.

Satya then illustrated the challenges we face, including the unsustainable use of resources and the dangers posed by emerging technologies such as AI. A call was made for climate conversations and events to evolve from niche to mainstream with a focus on solutions instead of restating known problems.

Satya closed his keynote by quoting Alvin Toffler, the famous American futurist: “it is time for all of us to it will be those who cannot learn, unlearn and relearn. unlearn and relearn what is important for our own survival,” Satya concluded.

Delegates were left with much to contemplate following an excellent presentation by Amanda Young, former Chief Sustainability Officer, abrdn.

Amanda shared her sustainable finance journey shedding light on the early days of sustainable investing, where she faced skepticism and the challenge of aligning finance with her environmental values. Initially, her role involved ethical policy development where she learned the importance of corporate engagement and fundamental research.

As the sustainable finance sector evolved, she observed a shift towards profit-driven motives over ethical considerations. The emergence of ESG as a buzzword raised concerns about a potential bubble, with inexperienced individuals entering the space, leading to confusion and the diluting of standards.

In recent years, regulatory pressures added to the challenges faced by sustainability teams, who often feel overwhelmed by compliance requirements. Despite these obstacles, Amanda expressed optimism for the future, emphasising the need to return to core principles and encourage long-term thinking in finance. “We need to call on investors, on companies and politicians to be brave, just like we were in the early days. To be agents of change, buck the trend and think long term. We can make progress and we are, but how we do this and the pace we set will be determined by those brave enough to take the big steps,” Amanda asserted.

She concluded by urging the next generation to embrace the mission of sustainable investment, fostering integrity and corporate responsibility to address global challenges.

Laura Lightbody, Governance & Legal Counsel at UNEP FI, joined the Summit to present UNEP FI’s new Guidance on Effective Governance.

Against a rapidly evolving sustainability landscape, robust governance and internal culture are indispensable for organisations in navigating the technical, commercial and ethical complexities.

Sustainability governance, that is the organisational structures, systems and processes put in place to govern environmental and social strategies, plays a critical role in supporting sustainability progress and especially in overseeing delivery against sustainability commitments. Aligning internal operations and ways of governing with such commitments is an important step, promoting accountability and credibility.

Closely connected to Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions institutional strength and soundness are elements which act to bind businesses to the communities in which they operate and serve.

This guidance was specifically developed by banks for banks together with UNEP FI and importantly with valuable input and advice from civil society organisations. It is designed to support and enable implementation of the Principles for Responsible Banking (PRB or Principles, used interchangeably throughout), specifically focussed on Principle 5: Governance and Culture.

Banks are facing a multitude of new sustainability regulation, while also balancing legal challenge connected with this agenda and increasing societal expectations. Drawing on key regional and global regulation, relevant international standards and best practices from signatories of the PRB, the guidance aims to help by:

• Inspiring and informing banks on effective sustainability governance practices
• Helping banks to navigate the significant internal transformation required to translate their sustainability commitments into action
• Supporting banks in approaching compliance with relevant governance-related sustainability standards and guidelines.

This year we were pleased to have BlackRock, one of the world’s leading providers of investment, advisory and risk management solutions, participating in the Summit.

George King IV, Senior Wealth Manager at MASECO Private Wealth, was tasked with facilitating a discussion on leadership and purpose with Sany Boss, Senior Managing Director and Chair at BlackRock UK.

Sandy outlined BlackRock’s purpose of helping clients achieve long-term financial well-being, primarily focused on retirement savings. She stressed the importance of delivering strong financial performance while also supporting clients’ goals for decarbonisation and net zero emissions. Sandy noted BlackRock’s role in supporting clients through stewardship and engagement with companies, and how blended finance can be an effective route to mitigate risks associated with emerging markets and support sustainable projects.

The complexities of the current investment landscape, including the energy transition and geopolitical risks, were amongst the topics covered in the conversation.

“We’re in a multi-decade, complete rewiring of the energy system. Every company, every business, every country is being changed because of this rewiring. This transformation will involve an estimated $4 trillion annually over the next decade, up from $2 trillion in 2020,” Sandy stated.

On the leadership front, Sandy underscored the importance of company culture, client-centricity, and ownership in driving performance and innovation. She encouraged a proactive approach to investing in a rapidly changing world, highlighting the need for collaboration across industry stakeholders.

Nicola Anderson, CEO, FinTech Scotland, Giles Cuthbert Managing Director, Chartered Banker Institute and Sarwar Khan, Sustainability Director, BT Group joined this fireside chat that delved into the ethical dimensions of integrating AI into financial services and how we can harness technology to drive sustainable outcomes.

The discussion kicked off looking at the importance of responsible and ethical AI development, highlighting the need for skilled professionals, transparency, accountability, fairness, and openness. Key points included: the role of expertise in ethical decision-making, practical examples of AI applications in fraud prevention and code generation, the potential benefits of AI in productivity and sustainability, and the need for strong AI policies and principles. Emphasis was placed on embedding ethics and sustainability into AI development from the outset, empowering organisations, establishing responsible tech steering committees, and understanding the AI ecosystem.

The call to action from this session was clear and straightforward. Organisations need to:

• develop and publicly share responsible AI policies
• establish robust data strategies to ensure the quality and inclusiveness of data used in AI models
• foster collaboration and knowledge-sharing across sectors and industries on responsible AI development
• explore opportunities for testing and sandboxing AI concepts before implementation
• engage with academic institutions and thought leaders to leverage their expertise in AI ethics and responsible development.

This session was the first time the Summit had shone a light on a fintech-related topic, providing a platform to foster dialogue on integrating AI responsibly into ethical finance practices, promoting transparency and societal well-being.

Tim Jackson is an ecological economist and writer. Since 2016 he has been Director of the Centre for the Understanding of Sustainable Prosperity (CUSP). CUSP is a multidisciplinary research centre which aims to understand the economic, social and political dimensions of sustainable prosperity. Its guiding vision for prosperity is one in which people everywhere have the capability to flourish as human beings – within the ecological and resource constraints of a finite planet.

Dr. Sarah Ivory, Senior Lecturer in Executive Education at the University of Edinburgh Business School, led the fireside discussion with Professor Jackson.

Professor Jackson addressed the urgent need to redefine economics and progress to effectively tackle climate change, biodiversity loss, and inequality as well as other challenges that conventional economics has failed to resolve. He critiqued the current economic system as unstable, driven by financialisation and fixation on growth and argued that this system has led to procrastination rather than progress, with growth rates in advanced economies declining since the 1960s.

Professor Jackson advocated for reframing investment as a commitment to the future, focusing on enterprises that generate societal value rather than merely financial returns. He stressed the importance of ethical finance in the transition promoting investments advocating for investments in growth-oriented sectors like renewable energy while avoiding harmful industries. He also highlighted the need for ongoing vigilance to ensure that investments remain aligned with societal progress. The critical role individuals play in fostering change, citing figures like Wangari Maathai and Peter McCase and their dedication to ethical investment and sustainability, was mentioned during the discussion.

Professor Jackson concluded by encouraging delegated to increase their awareness of the risks posed by vested interests that prioritise growth over societal well-being.

After an insightful keynote, John joined a fireside chat looking at how we can navigate uncertainty while maintaining a commitment to sustainability across different regions. The discussion was led by Amal Larhlid, Partner, PwC Middle East.

Rachel A. Aron, Managing Director, Tugo Cwiny Management Consulting started by outlining the critical global forces influencing Africa today. These include a surge of interest in its resources, often referred to as a “golden rush”, new forms of imperialism from various continents, the emergence of global sustainability standards originating outside the continent, increased regionalism and trade relations, and growing South-South cooperation among developing countries.

Opportunities for Africa are abundant. Key initiatives mentioned by Rachel included effectively implementing the African Continental Free Trade Area (AfCFTA), engaging with the expanding BRICS+ alliance, fostering inclusive industries that focus on value addition, leveraging social capital, enhancing climate change adaptation strategies, creating alternative economic livelihoods, and exploring blue economy prospects such as sustainable aquaculture and ocean energy.

Leon Kamhi, Head of Responsibility and EOS, Federated Hermes then addressed broader global trends such as the energy transition, which necessitates new investment approaches, the disruption of AI and technology, and the geopolitical tensions that highlight the need for a just transition. He outlined strategies to make development more investable in Africa, including integrating economic and social linkages into policies and investment projects, utilising a mix of public and private sector investments, addressing socioeconomic and cultural vulnerabilities, leveraging sovereign wealth funds, and tailoring sustainable finance to the African context while involving regional financial institutions.

John Pang then presented some key initiatives underway in China, highlighting that “China’s environmental policy is not a bolt on; it is a matter of survival.” Examples included China’s approach to partnerships and investments (in infrastructure such as schools, bridges, roads, airports, and ports) that have supported Africa’s development needs.

Panelists went on to discuss broader ethical frameworks, especially those of Ibn Khaldun and Adam Smith, which are essential for tackling sustainability challenges and navigating uncertainty.

John Pang, Senior Fellow at The Belt and Road Initiative Caucus for Asia Pacific kicked off this session by delivering a keynote address drawing upon his expertise on thriving in turbulent times and China’s perspectives on global challenges. He started his keynote by discussing the importance of global cooperation and unity in addressing sustainability challenges, particularly in the context of a fragmenting world order.

“We live in a world that is increasingly decoupled, facing challenges such as multipolarity and de-globalization. Why is this relevant? Because this is not just a project in Edinburgh or a financial initiative. We are confronting a global challenge that requires collective action and unity of purpose on a scale never seen before, especially at a time when the notion of one world and one humanity is more threatened than it has been since the last great war.” John stated.

John went on to highlight China’s significant progress in reducing emissions, installing two-thirds of the world’s solar panels, reducing solar panel prices by 90% over the last decade, doubling forest cover since 1949, and planting 30 million hectares of new forest. He emphasised the importance of finding a common intellectual world, a shared understanding of information and knowledge, and reconnecting with different perspectives. John cited the historical example of the Scottish missionary James Legg, known as the ‘Dean of Chinese translators into English,’ as an example of the kind of engagement and connection needed to address global problems.

GEFI Global Steering Group member David Pitt-Watson joined Deputy First Minister of Scotland and Cabinet Secretary for Economy and Gaelic Kate Forbes to launch the Scottish Taskforce for Green & Sustainable Financial Services’ Final report.

Initiated by the Scottish Government and GEFI (secretariat) with support from Scottish Financial Enterprise (industry partner), the Taskforce was active from February 2022 until May 2024. It sought to coordinate and enhance Scotland’s sustainable finance cluster and develop its position as a leading global centre of excellence for green and sustainable finance.

With active participation from 24 financial institutions and financial services stakeholders, during its 2+ year lifespan, the Taskforce hosted 8 formal meetings, delivered 2 presentations to the First Minister’s Financial Services Growth and Development Board, facilitated over 10 workshops and conducted 50-plus private meetings.

The report includes significant and timely recommendations, such as the further development of the annual Green Finance Summit to incorporate investors and the exploration of establishing an industry-led Green and Sustainable Finance Institute.

At the Summit, the Deputy First Minister delivered a keynote address before joining Taskforce Chair David Pitt-Watson for a fireside chat. The session concluded with a video from Mark Carney, UN Special Envoy on Climate Action and Finance (available on the Taskforce website).

Some of the key insights shared during the report launch at the Summit included:

“This is a pivotal time in our journey. We know that the cost of transitioning to a net zero economy are lowest and the opportunities are greatest with early and well managed action. The Taskforce report is a routemap that will take us to that end point of success and we as society, government, and industry are accountable to rise the challenge and deliver it.” Kate Forbes MSP, Deputy First Minister of Scotland and Cabinet Secretary for Economy and Gaelic

“Today marks an important milestone. Scotland embodies what the world requires to build a sustainable future, both Smith’s invisible hand in the market with his moral sentiments of a society dedicated to sustainability combined with the innovation and pragmatic spirit of the Scots, gave rise to the Industrial Revolution and positions Scotland to lead the sustainable revolution.” Mark Carney, UN Special Envoy on Climate Action and Finance

“The GEFI team has been a huge support to the Scottish government and to the wider financial sector, promoting the global dialogue around the development of ethical finance and supporting Scotland’s ambition to become a truly competitive global centre for green and sustainable financial services.” Kate Forbes MSP, Deputy First Minister of Scotland and Cabinet Secretary for Economy and Gaelic