Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Home Finance Investing in our planet: The Finance sector’s role in fostering a sustainable and inclusive future following earth day 2023
iStock 891501874

Investing in our planet: The Finance sector’s role in fostering a sustainable and inclusive future following earth day 2023

by Jessica Weisman-Pitts
0 comments

Investing in our planet: The Finance sector’s role in fostering a sustainable and inclusive future following earth day 2023

By Jamie Palmer, CEO and Co-founder of Social Supermarket

How Green Supply Chain Management, Impact Reporting, and Ethical Sourcing Can Shape the Future of Finance and Business

As Earth Day 2023 was celebrated worldwide, it is essential to recognise the role of the finance sector in “investing in our planet”, which is the theme of this year’s annual climate awareness day. With the theme in mind, we must explore how investment into sustainable businesses, Green Supply Chain Management (GSCM), impact reporting, and ethical sourcing are shaping the future of finance and business.

GSCM is a critical component in achieving the UK’s net zero goals. By incorporating environmentally friendly practices into every stage of the supply chain, businesses can significantly reduce their carbon footprints and contribute to a greener future. The finance sector, in particular, plays a pivotal role in promoting eco-friendly business practices and supporting companies that prioritise sustainability. Investment portfolios that incorporate environmental, social, and governance (ESG) criteria can drive businesses to adopt GSCM and demonstrate their commitment to a sustainable future.

The connection between oil financing from banks and environmental concerns is another pressing issue when considering the finance sector’s role in investing in our planet. “Banks and finance institutions that have signed up to net zero pledges are still investing heavily in fossil fuels”, as The Guardian reported in January, exemplifying how major financial institutions need to reevaluate their investments in fossil fuel companies to address climate change and meet net zero targets. As Earth Day 2023 underscores the importance of sustainable practices, banks have a responsibility to redirect investments towards more sustainable and eco-friendly industries, such as renewable energy and clean technologies. By adopting stringent ESG criteria in their lending and investment policies, financial institutions can foster a greener economy, demonstrating a commitment to investing in our planet and contributing to a future where financial success is intrinsically linked with environmental responsibility and social equity.

To create tangible change, I believe impact reporting is a crucial step towards investing in our planet. A great starting point is to begin with a social impact audit to evaluate existing products, then progress to full impact reporting. By providing valuable data on the effectiveness of green initiatives, impact reporting enables businesses to make informed decisions about their sustainability strategies and allows companies to demonstrate their purpose-driven approaches, which add “long-term value to businesses”, according to research by Deloitte. At Social Supermarket, we offer impact reporting to our corporate clients through our Team Gifting Platform. This unique offering assists business and procurement leaders in communicating their environmental impact and further incentivises green growth.

Social procurement, a cornerstone of Social Supermarket’s marketplace, creates tangible effects on our environment and society. For example, by switching to carbon-neutral toilet paper made from recycled paper, businesses can save trees and contribute to the reduction of greenhouse gas emissions. Additionally, businesses can support horticultural training programs for female ex-offenders when purchasing desk plants, promoting social inclusion and creating new opportunities for marginalised individuals. These seemingly small choices can result in a ripple effect of positive change throughout our communities and ecosystems.

The rise of businesses committed to doing better is evidenced by the fact that the second fastest-growing role in the UK is ‘Sustainability Manager’. These professionals are responsible for implementing and managing sustainability programs within organisations, ensuring that environmental and social considerations are integrated into business decisions. As businesses embrace the importance of sustainability, the finance sector can support these efforts by providing resources and expertise to help companies transition towards greener practices.

The growth of the B Corp movement in the UK further exemplifies the increasing number of businesses that prioritise sustainability and social responsibility. With over 1,200 certified businesses, the UK has one of the fastest-growing B Corp communities. These companies meet rigorous social and environmental standards, as well as maintain transparency and accountability in their operations. The finance sector can bolster the B Corp movement by investing in and partnering with certified businesses, encouraging other companies to pursue B Corp certification and adopt sustainable practices.

Financial institutions have a unique opportunity to promote green bonds and other sustainable investments, such as ESG-linked derivatives, that can facilitate the transition to a low-carbon economy. By allocating funds to projects and businesses that align with environmental and social objectives, the finance sector can play a significant role in driving sustainable development.

Technological advancements also present an opportunity for the finance sector to support innovative solutions that address environmental challenges. By investing in and partnering with startups and established businesses developing clean technologies, financial institutions can contribute to the global effort towards a sustainable future.

As Earth Day 2023 was celebrated, it is crucial to remember that investing in our planet is a collective responsibility. With its influence and resources, the finance sector must lead by example in championing sustainable practices and fostering a greener future for generations to come. By prioritising investment, GSCM, impact reporting, and ethical sourcing, the finance sector can contribute significantly to the UK’s net zero goals and drive positive change throughout the global economy.

In conclusion, the finance sector has a unique opportunity to invest in our planet by supporting businesses that prioritise sustainability and social responsibility. By embracing the values of Earth Day 2023, the finance sector can help to shape a future in which financial success is aligned with environmental stewardship and social equity. Through collaboration and innovation, we can make “investing in our planet” a reality, ensuring a brighter and more sustainable future for all.

Recent Post
Illustration of a woman with long black hair and wearing white round earrings. She is smiling and dressed in a red top, set against a light pink background.
Jessica Weisman-Pitts

Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.