LocationsSustainable finance: a key tool for socioeconomic and environmental development
21 de Octubre de 2024
Sustainable finance: a key tool for socioeconomic and environmental development
As climate and economic crises intensify, the need for decisive action becomes inescapable. It is estimated that by 2050 more than 140 million people could be displaced due to disasters linked to climate change, while growing economic inequality leaves the most vulnerable communities in precarious situations (IPCC, 2022). In this challenging context, sustainable finances emerge as a global priority.
In this sense, sustainable finances, which include ethical, environmental, social and governance (ESG) considerations in investment decisions, are key to promoting a more equitable and environmentally friendly future. This approach not only directs capital toward projects that generate economic benefits, but also seeks to foster more inclusive and resilient economies that reduce inequality gaps, thereby strengthening the resilience of communities and creating opportunities that benefit society and the environment.
To achieve these goals, it is crucial to adopt a holistic approach. We must promote initiatives that facilitate climate change mitigation and adaptation, as well as biodiversity conservation and the circular economy. At the same time, it is essential to combat inequality, foster inclusion and protect human rights, all under an ethical and responsible governance that promotes fair labor relations as a fundamental pillar of this process.
Likewise, by supporting the transition to clean energy, reducing carbon emissions and improving resource efficiency, sustainable finances can have a positive and lasting impact on our economies and communities, promoting more equitable and environmentally friendly economic growth.
What has UNDP been doing in relation to sustainable finance?
The United Nations Development Programme (UNDP) has been actively working through its Sustainable Finance Centre to help economies build a financial architecture that supports the achievement of the Sustainable Development Goals (SDGs). As part of its role, UNDP serves as the technical secretariat of the G20's Sustainable Finance Working Group (SFWG), facilitating collaboration between the world's leading economies and the private sector to advance sustainable finance initiatives.
UNDP has been supporting Peru's chairmanship of APEC 2024, including the Finance Minister Process (APEC FMP). This year, there’s been an active effort at supporting the Finance and Central Banking Deputy Ministers' Meeting (FCBDM), held in Arequipa in February, and the Senior Finance Officials' Meetings (SFOM), which took place in May in Cuzco.
“Working together, we can contribute to the advancement of sustainable finances and help fulfill APEC's mission in the pursuit of long-term socio-economic and environmental sustainability. From UNDP, we support these efforts and believe that, through collaboration and knowledge sharing, we can transform sustainable finances into an engine for inclusive growth and lasting prosperity,” said Maria Del Carmen Sacasa, UNDP Deputy Regional Director for Latin America and the Caribbean.
At UNDP, we are committed to supporting this effort with our technical expertise and to supporting Peru's APEC Chairmanship in its mission to empower people, include all communities and grow sustainably. In partnership, we can advance sustainable finances and move towards a more resilient socio-economic and environmental future.