2nd Update Report: Insights from Practice
This is the second update report by the UNEP Inquiry, it highlights early lessons from the Inquiry’s ongoing work in more than a dozen countries.
What is clear from inital engagement is that even with strong real economy policies to correct market failures and deploy public capital, some interventions in the financial system will be needed to realise sustainability ambitions.
Inadequate information, misaligned incentives, ill-defined responsibilities and over-discounting of future risks and returns are among the factors that constrain the efficient deployment of capital for long-term value creation, taking full account of environmental and social factors. Key cross-country policy themes are emerging including:
- Improving the pricing of sustainability risks
- Harnessing institutional capital for sustainability in the developing world
- Rebalancing debt capital allocation and
- Realising the strategic potential of central banks