Time - USA (2022-04-25)

62 Time April 25/May 2, 2022

capital, no business or

government can hope

to achieve these goals.

At COP26, 450

major financial insti-

tutions committed to

making their portfo-

lios net zero by 2050,

meaning they will re-

quire any company

they invest in to elimi-

nate or offset their

carbon footprint. The

$130 trillion they col-

lectively manage may

sound like more than

enough capital to solve

sustainability issues.

However, a fraction

of that is being put to

this use. The OECD

estimates $2.5 trillion

is needed annually

to achieve the SDGs,

two-thirds of which

must be invested in

developing countries.

Just 10% is currently

being invested.

The financial eco-

system is sophis-

ticated, compris-

ing many different,

interdependent players

Ideas for a

Sustainable

Future

FOUR NEW MEMBERS OF TIME’S 2030 COMMITTEE—PART

OF A PROJECT MARKING THIS DECADE’S PROGRESS TOWARD

A BETTER WORLD—OFFER SOLUTIONS FOR CHANGE

2030

FINANCIAL

INSTITUTIONS

MUST DO

THE WORK

who cannot change the

system alone. No asset

manager can build a

carbon- neutral portfo-

lio unless their custom-

ers demand net-zero

indexes. Similarly,

banks can’t finance

projects in developing

countries without rat-

ing agencies offering

fair credit ratings and

regulators taking a pro-

gressive approach. At

COP26, we heard an

unprecedented appeal

from financial insti-

tutions for regulatory

intervention. Govern-

ments should seize this

opportunity to acceler-

ate change. To achieve

their commitments

and subsequently the

SDGs, all players must

have open dialogue

and hold one another

accountable to produce

and adhere to concrete

action plans.

Investors are

urging CEOs to do

more than maximize

shareholders’ value.

Investors must also

fulfill a greater re-

sponsibility than sim-

ply optimizing finan-

cial returns, by acting

as stewards of the

entire financial eco-

system. For their port-

folios to become sus-

tainable, the financial

system—and wider

economic system—

must be sustainable.

That extends to the

societies and environ-

ments we live in.

We are all part

of the financial eco-

system and can con-

tribute to its system-

atic change. Why

not start by asking

your bank to offer

sustainability- focused

financial products?

Our combined con-

tributions will mo-

bilize the financial

system to achieve the

U.N.’s SDGs. There’s

no time to waste. We

must work together to

achieve a sustainable

and inclusive future.

HIRO MIZUNO

U.N. Special Envoy on

Innovative Finance

and Sustainable

Investments

Finance is

indispensable to the

achievement of the

U.N.’s Sustainable

Development

Goals (SDG), which

address issues from

climate change to

inequality. Without

ILLUSTRATIONS BY ALEKSANDRA STANGLEWICZ FOR TIME