What is the role of public and private investment in sustainable finance? How can green bonds and blended finance achieve sustainable development goals? These questions were the focus of a panel discussion titled ‘Prudence, Purpose, and Profit; Balancing Returns, Impact, and Risk’ at Sibos 2025 in Frankfurt.
Susan Brown, assistant secretary general and director of the Bureau of External Relations at the UN Development Programme; John Murton, senior sustainability advisor at Standard Chartered Bank; and Andrew Wilson, deputy secretary general at the France International Chamber of Commerce, explored how corporate banking institutions are prioritizing climate resilience and sustainability. The session was moderated by Tamara Singh, managing director and senior advisor at The Nature Conservancy.
Brown emphasized that digital finance has the potential to include underserved populations in the financial ecosystem, ultimately strengthening economies, small and medium enterprises (SMEs), and investment opportunities. She stressed the importance of aligning prudence with profit in business practices to effectively address climate change and highlighted opportunities in biodiversity bonds, climate bonds, and conflict bonds in rapidly growing emerging economies.
Murton articulated the responsibilities of banks to:
1. Advise clients on risks to their equities from climate change.
2. Identify economic changes driven by climate change.
3. Offer clients investment options in sustainable sectors.
He noted the insurance industry’s trend of withdrawing coverage for properties in areas susceptible to extreme weather, underscoring the urgency of addressing environmental and social issues affecting vulnerable populations.
The discussion also covered the differences between public and private sector investments in sustainable development. Brown outlined the crucial role of the UN in de-risking the operating environment for businesses through sustainable development initiatives. She pointed out that proposed cuts in overseas development aid could hinder the UN’s efforts, placing greater responsibility on private sector investment for climate action.
Both Brown and Murton expressed concern over declining public sector investment in sustainability, particularly in the US and Europe, urging the business community to take on more responsibility. Murton suggested a shift towards community-driven roles in development finance, advocating for early-stage grants and equity investments.
Murton highlighted the necessity of building resilience to combat climate change and posed the question of how to create bankable opportunities in areas such as circular economy and biodiversity. He noted that aligning profit with purpose could enhance client loyalty and provide value-driven services.
Wilson pointed out that unchecked global challenges can have domestic repercussions, thus emphasizing that climate change should be treated as a global issue. He called for greater accountability among Western governments regarding their actions beyond national borders.
In conclusion, Murton emphasized that “visionary leadership” and “strategic collaboration” are vital for overcoming challenges in sustainable development. Brown added that innovation and regulatory clarity are fundamental for advancing sustainable investment efforts.