The interactive workshop session, Sustainable Finance Live, was celebrated as a rapid co-creation opportunity that transformed ideas into reality in just one hour.
Richard Conway, CEO of Elastacloud, Sam Gandy, head of innovation at Ecosulis, Jigisha Lock, head of platform strategy, portfolio, and ESG solutions at NatWest Markets, and Vian Sharif, head of sustainability at FNZ and Founder of Nature Alpha, took the stage to discuss the financial sector’s role in facilitating climate transitions and financing sustainable cities.
Lock set the stage by sharing that cities consume 70% of global energy and produce 75% of emissions. She posed the question, “What would it take to create a sustainable smart city?” Key parameters identified included smart grids, effective insulation, water and waste management, local food production, and fostering a growing community.
Banks can support sustainable city initiatives through various financial instruments such as green bonds, sustainability bonds, and project financing—all viewed through a sustainability lens that aims for both financial and environmental returns. However, challenges like measurability and scalability, which affect profitability, were highlighted. While non-financial returns are vital for sustainability, their failure to translate into direct profits could lead to shareholder penalties.
Sharif emphasized the importance of considering nature’s capital in investment decisions, especially regarding dependencies like water and soil. She pointed out the significance of emerging regulations reflecting a heightened awareness of these issues and stressed the need to acknowledge the location-specific nature of biodiversity.
The discussion also addressed the technological advancements available for measuring ecological changes over time, alongside satellite imagery capabilities that allow for the monitoring of ecosystem adjustments. Standardizing and effectively measuring these developments alongside traditional financial metrics is becoming increasingly feasible.
Regarding the success of sustainable cities, Lock noted the role of organizations like the TNFD in supporting standardization but warned that generic regulations could lead to accusations of greenwashing. The need for dialogue, learning, and collaboration within the industry was highlighted as essential for fostering sustainability, given that no single organization can succeed in isolation.
Using the example of a rhino bond aimed at increasing a specific rhino population in South Africa, Lock illustrated how conservationists partnered with financial services to track progress and ensure necessary ecosystems were supported. She called for a fresh perspective on products and opportunities in this context.
Lock also discussed India’s potential for sustainable development, highlighting that while the concept of a circular economy isn’t new, its implementation in emerging economies requires reinventing and investing in existing technologies alongside developing innovative products.
Gandy added that mental health benefits should be considered during city design, given their potential economic impact. While discussing the balance between development and nature, he noted the need for proactive approaches in projects aimed at rewilding and ecosystem restoration.
Lock implored financial institutions to have a deeper understanding of the data they possess and its relevance to sustainability, emphasizing that not all banks leverage the data effectively.
Sharif remarked on the significant evolution in investment decision-making regarding nature over the past three years, fueled by accelerated regulatory guidance and frameworks that have reshaped engagement from the finance sector and their data purchasing practices.