Embedding sustainability in business models

A successful transition to sustainable finance and a low-carbon, circular economy requires a profound change in business models, where:

  • Both corporations and financial services adopt the goal of long-term value creation.
  • Sustainability is incorporated in the traditional investment and lending models, which optimise value based on risk and return.

The new equation becomes Value = f (Risk, Return, Sustainability).

Conditions for transition to a low carbon economy 

“All economic players, including the financial sector, adopt a forward-looking mindset that recognizes low carbon opportunities, collaborate to create shared visions of a low carbon future, innovate and pioneer new business practices and products.”

Zone of Institutionalisation

  • Fully aligned net zero business & operating models

Zone of Transition

  • Adopt a forward-looking, active mindset
  • Collaborate with others to create shared visions 
  • Create innovative, pioneering practices

Banking-as-usual zone

  • Passive mindset: waiting for others to move
  • Sustainability is viewed as a reputational risk 

Source: Bank 2030, University of Cambridge

Embedding sustainability in business models

How can we help: IMPACTplus partners with innovation think-tanks and sustainability NGOs to help you catalyse the transition to a greener and more sustainable finance through innovation, product design, client engagement and private-public initiatives.

Optimising frameworks for Green and Sustainable financial products
Requirements and considerations for green and sustainable bonds 2.0

Engaging with clients in the low carbon & sustainability transition
Leveraging climate risk analysis to engage client dialogue on low carbon & sustainability targets and induce change in retail customers behaviour.

Inspiring frugal innovation, in partnership with frugal-Company.com
Workshops on ‘frugal” and sustainable innovation, to inspire your teams to do more with less.

Positive impact, from measurement to action
Using UNEP – FI Positive Impact initiative and PRI’s “ESG Integration” to inform sustainable lending and investment