The coronavirus health crisis is first and foremost a human tragedy. But, it is also posing major risks for the global economy, exposing financial vulnerabilities and testing the post-financial crisis economic model.
International financial institutions, central banks and multilateral development banks are working to respond to the crisis and ease the economic disruption through structural transformation, monetary measures and additional lending commitments.
Sustainable investing is very much part of the COVID-19 response. This includes the social bond market and socially responsible impact investment strategies. The outbreak shows how important long-term resilience into portfolio is for sustainable investing. Responsible investors have a role to play by focusing on long-term economic performance, and asset managers and investors can proactively protect their investments by particularly addressing the “social” part of ESG stock funds.
Sustainable finance also has a role to play in mobilizing the response to coronavirus, as evidenced by UNEP FI members’ banks actions. Institutional investors’ fiduciary duties and stewardship practices should be aligned with long-term decision-making and sustainable value creation.
In addition, governments’ stimulus packages need to lay the foundation for crucial Paris climate agreement-aligned investment. This includes encouraging longer-term investments for sustainable infrastructure with appropriate market incentives.
The 10-part #GGKPwebinar series Sustainability After COVID-19, which ran from April-July 2020, invited experts from leading institutions to discuss the impacts of the pandemic on issues ranging from poverty to gender, nature, supply chains, waste and the global Green New Deal movement.
Discussions centred on what it would take to achieve an inclusive, green recovery, including green fiscal stimulus packages, sustainable finance, green buildings and construction, public polices for inclusive green growth and more.
The conversation continued in the fall, with the ongoing Rebuilding Better series. Discussions thus far have focused on how training and education, material efficiency, green industrial policy, land restoration and improved mineral resource governance can support a green and just post-COVID world, and how governments can support businesses and workers throughout a just transition to greener economies.
COVID-19-related #GGKPwebinars generated a tremendous amount of interest in 2020, with over 7,000 participants engaging directly with more than 100 global experts in over 20 online discussions.
“We are committed to providing up-to-date information and insights into the global pandemic,” said Simmons. “GGKP’s focus on promoting an inclusive and sustainable economy is intended to complement and build on other organisations’ important efforts focused on health, labour, fiscal and other social and economic issues related to the COVID-19 response.”