The Driving Forces of Change in Sustainable Finance

Posted on November 17th 2023

Regulation or Innovation? The Driving Forces of Change in Sustainable Finance

Our latest data-led report with Relative Insight focuses on the finance industry’s relationship to sustainability. Delving into the escalating interest exhibited by venture capital (VC) and private equity (PE) firms.

The question at hand: Are these entities pioneering the path toward sustainability, or are they simply responding and adapting to the challenges set by established standards and frameworks?

Key insights:

  • A noticeable relationship between legislative action and increased ESG reporting reveals the government's role in reshaping industry norms.

  • PE and VC firms increasingly prioritise sustainability, as evidenced by a surge in reports discussing zero emissions, ESG integration, and climate-related risks in 2021.

  • A case study on Vala Capital showcases intentional and strategic sustainable finance and illustrates the power of aligning investments with societal and environmental interests.

  • Conflicting viewpoints on VC and PE firms' role in sustainability underline the need for transparency, measurable improvements, and genuine action.

“The data uncovered during the research speaks volumes and clearly suggests that VC and PE firms are recognising the value of sustainability, and in a wider sense, not solely in terms of compliance but as a pivotal factor in attracting investment, retaining customers, and nurturing talent,” explains Alex Smith, Co-Founder of FuturePlus.

Download full report here.