Institutional investors, banks and other private sector financial institutions oversee trillions of dollars of investible capital. It is crucial that these financial actors allocate their capital in a way that transforms the real economy by building zero-carbon energy, replacing high-carbon assets and making climate resilience a standard aspect in investment decisions. These actions, alongside more robust integration of climate-related financial risks into financial decision-making, will also enhance the resilience of the financial system.

WRI envisions a future where financial markets support a sustainable, prosperous world for generations to come. In this future, sustainability is a fundamental factor in investment decisions, company sustainability performance shapes market valuation and sustainable investing will be mainstream.

This transition is already underway. It is driven by both the private sector's concern over escalating climate impacts, and by emerging business opportunities. With global climate finance estimated to have hit $2 trillion in 2024, the investments made today shape the transition to a low-carbon, climate-resilient and just economy. 

Leading businesses, financial institutions and investors are shifting management practices to prepare for this future and explore profit opportunities — aiming not just to survive, but thrive, in 21st-century economies.

Learn more with WRI's Net Zero Tracker for Financial Institutions     

While there is growing momentum behind sustainable finance, barriers persist, from political opposition to a lack of data and adequate knowledge or capacity to integrate climate risks.

WRI uses its finance expertise, data, research and convening power to help overcome these obstacles. We collaborate with banks, institutional investors and other market participants to inform, develop and promote widespread adoption of sustainable strategies and practices. 
•    Producing research on how environmental and climate issues impact investors
•    Convening industry leaders to advance the role of the private sector in achieving national and international climate goals
•    Advocating for policies that create bankable projects
•    Assessing the uptake of climate and nature risk disclosures
•    Supporting bodies regulating the financial sector

In addition to typical desk research, WRI invests its own capital in a prudent manner that incorporates how companies manage ESG risks and opportunities, while achieving a market return. This approach will help maintain and increase WRI financial resources to provide continuous support to carry out the Institute's mission.

Photo Credit: Erol Ahmed/Unsplash.