As we tackle one of the biggest global crises of our time, green and sustainable issues are becoming more critical than ever for business leaders in the financial services sector. Julian Wells, director and financial services & FinTech lead at Whitecap Consulting, shares some perspectives.

Sustainability in business has tended to be primarily associated with long-term commercial performance issues such as with balance sheet strength, brand reputation, and enterprise value. Now, there is an additional movement gaining significant momentum and profile in the corporate landscape, with a broader set of non-commercial objectives becoming increasingly prominent for investors and consumers alike. For example, 93% of the world’s largest companies by revenue now formally report on Environmental, Social, and Corporate Governance (ESG), disclosing data on aspects like how many gallons of water they have conserved or how much plastic they have recycled (ISS EVA, 2019).

Throughout the past year, ESG practices have provided a strategic and cultural roadmap for organisations to navigate, adapt and emerge from the pandemic with their businesses not only intact but also providing a foundation for the future. Investor behaviour is also supporting this trend as inflows into sustainable investment strategies overwhelmed every other category and now top $1 trillion (LinkedIn, 2021), whilst in the UK, responsible investment funds saw net flows of £7.1bn in the first three quarters of 2020, 275% more than the £1.9bn measured in same period of 2019 (Financial Times, 2020).

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