Ana Yang, Acting Executive Director, Hoffmann Centre for Sustainable Resource Economy
Nick Silver, Founder & Chairman, Climate Bonds Initiative
How can the investment industry drive capital to the investments needed to create a carbon-neutral society?
When we invest, our monies pass through a complex chain of financial intermediaries to corporates or governments who are expected to be able to generate value over our investment timeframes. The purpose of this system is, arguably, to generate returns for investors commensurate with their risk appetites; over the long-term this should be consistent with driving capital to those entities that will thrive in a world converting to carbon-neutrality.
But in practice, does the structure and incentives of the industry prevent this happening? This event, hosted by Chatham House's Hoffmann Centre for Sustainable Resource Economy and FinSTIC, explores the current structure of the investment industry through a systems lens.
How well does it work? Does the interaction of key participants result in financial flows being directed to long-term, carbon-neutral investments? Ultimately, what is the purpose of the investment system, and what changes in behaviours are required to achieve the necessary redirection of capital that the climate crisis urgently requires?