Institutional investment

Asset Pools : Institutional investment

With nearly US$100 trillion under management, institutional investors, including investment funds, pension funds, insurance companies, endowments and sovereign wealth funds are, after banks, the largest asset holders across all asset classes Policy packages include:
  • Align the design of pension and other investment systems with sustainability. Clarify fiduciary law and guidance and requirements for the skills and capabilities of fiduciaries. Build consumer literacy and require that funds report on sustainable performance and policies.
  • Resetting market and public incentive structures would help stimulate demand for sustainable investment products. Market codes can encourage asset owners to align incentives down the chain, notably for investment consultants, asset managers and investment analysts. Policymakers could review the effective use of fiscal incentives for saving to drive long-term finance for the real economy.

Inquiry Publications

  • Making Waves

    Date: 17-Apr-2018

    The Inquiry into the Design of a Sustainable Financial System was initiated by the United Nations Environment Programme to advance options to align the financial system with sustainable development. ‘Making Waves: Aligning the Financial System with Sustainable Development’ is its final, global report. This report reviews the Inquiry’s core analysis, summarizes progress made in aligning

  • The Financial System We Need: From Momentum to Transformation

    Date: 29-Sep-2016

    Download the policy summary: [AR] [CH] [EN] [ES] [FR] [PT] [RU] Download the individual chapters: Chapter 1: Mapping the momentum | Chapter 2: Harnessing financial technology for sustainable development | Chapter 3: Measuring performance | Chapter 4: Steps towards transformation Our follow-up annual report reveals a doubling in policy actions over the past five years to align the global financial system with sustainable

  • A Review of International Financial Standards as They Relate to Sustainable Development

    Date: 22-Feb-2017

    The report, a companion to the second edition of “The Financial System We Need”, examines how the international financial standards currently relate to the goals of sustainable development and explores opportunities for better alignment as a way to promote greater stability, resilience and fairness to the financial system. The key messages are: Financial standards have

  • The Experience of Governance Innovations in South Africa

    Date: 17-Jun-2016

    This paper explores whether the extent to which Regulation 28, CRISA and JSE Integrated Reporting Standards (referred to as governance policy innovations) have influenced the level of investment that integrates Environmental, Social and Governance (ESG) in its decision making process. It finds that while governance innovations have increased actors’ awareness about interrelationship between ESG factors and financial performance it

  • Input from the Netherlands to the UNEP Inquiry

    Date: 20-Oct-2015

    This note summarizes the input provided to the Inquiry at a meeting with representatives from the Dutch financial sector ranging from public policymakers and regulators to the largest banks, asset managers, insurance companies and sustainable frontrunners. The policy recommendations include best practices, financial market policy and regulatory innovations to help bring about the green economy

  • France Country Report

    Date: 23-Nov-2015

    This report highlights experience from France in improving the integration of sustainability issues into financial decision-making. A key area of focus has been on improving information and market analysis. Environmental, social and governance (ESG) reporting requirements were first introduced in the New Economics Regulation law of 2001, and strengthened by the 2010 ‘Grenelle II’ law and 2015 the

  • The Environmental Risk Disclosure Regime

    Date: 06-Jul-2015

    In recent years, a plurality of different governance initiatives has emerged that are designed to expand the disclosure of environmental risk within financial markets. There is evidence for policy convergence among different initiatives but it lacks the enforcement necessary for coherence, and contributes to uncertainty within the financial sector over the impact of environmental risk. This uncertainty justifies an expanded role of international

  • Greening the Financial System: Enhancing Competitiveness Through Economic Development

    Date: 16-May-2017

    This briefing summarises the discussions held during a roundtable for market and policy leaders in Washington, D.C. on 20 April 2017. The goal of the event was to explore pathways to scale and speed up green finance and to harness its benefits for long-term sustainable growth and competitiveness. The key messages are: Green finance made

  • 3rd Update Report: Pathways to Scale

    Date: 07-Jan-2015

    This is the 3rd Update Report of the UNEP Inquiry, it is focused on the challenge of financing the low-carbon transition. It explores how innovative ideas and practices can be made more effective, adopted more widely, and taken to scale—and as a result move the trillions that are required. Scaling-up proven but limited innovations, is a common

  • India Country Report

    Date: 29-Apr-2016

    An India Advisory Council of the UNEP India Inquiry was convened by the Federation of Indian Chambers of Commerce and Industry (FICCI). This report highlights key proposals emerging from their discussions for aligning the Indian financial system with sustainability. In the Indian context, they call for development of a more robust and resilient ‘sustainability-oriented market framework’ focused

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Further Readings

  • Mapping Channels To Mobilise Institutional Investment In Sustainable Energy

    OECD (2014). Paris. 9th February 2015.

  • The Role Of Institutional Investors in Financing Clean Energy

    Kaminker, C., Stewart, F. (2012). OECD Working Papers of Finance, Insurance and Private Pensions No 23. Paris: OECD Publishing.

  • Institutional Investors and Green Infrastructure Investments: Selected Case Studies

    Kaminker, C., Kawanishi, O., Stewart, S., Caldecott, B. and Howarth, N. (2013). Paris: OECD Publishing.

  • Global Investor Survey on Climate Change. Annual Report on Actions and Progress 2011

    Institutional Investors Group on Climate Change/ Investor Network on Climate Risk/ Investor Group on Climate Change (2011).

  • 2012 Global Sustainable Investment Review

    Global Sustainable Investment Alliance (2013).

  • High-Level Principles of Long-Term Investment Financing by Institutional Investors

    G20/OECD (2013). Paris: OECD Publishing.

  • Policy Note on Pension Fund Financing for Green Infrastructure and Initiatives

    G20/OECD (2012).

  • Connecting the Dots Between Climate Change Goals, Portfolio Allocation and Financial Regulation

    Dupré, S. and Chenet, H. (2012). Paris: 2 Degrees Investing.

  • Promoting Long-Term Investment by Institutional Investors: Selected Issues and Policies

    Della croce, R., Stewart, F. and Yermo, J. (2011). OECD Journal, Financial Market Trends Volume 2011 – Issue 1. Paris: OECD Publishing.

  • Focusing Capital on the Long Term

    Barton, D. and M. Wiseman (2013). London: McKinsey.

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