This paper addresses the imperative task of advancing sustainability through financial practices, providing recommendations and insights for various stakeholders, including individual investors, asset owners, asset managers, investment consultants, banks, credit rating agencies, stock exchanges, securities regulators, companies, and regulators. Each chapter of the paper offers valuable perspectives and actionable suggestions tailored to the roles and responsibilities of these entities in fostering sustainable finance.

The chapter focusing on individuals underscores the rising public sentiment of responsibility and urgency toward sustainability. It highlights the potential for individual investors to drive ethical investment opportunities and dispels the misconception of lower returns in sustainable investments, emphasizing the positive social and environmental impact that can be achieved.

Asset owners, in the chapter dedicated to them, are reminded of their duty to protect and grow investment portfolios for the benefit of their beneficiaries. The recommendation is to integrate Environmental, Social, and Governance (ESG) criteria into decision-making processes, allocate funds targeting sustainable outcomes, and consider sustainable finance regulations at different levels. Research supporting the integration of ESG criteria into investment decision-making for stronger performance is highlighted.

The role of asset managers in delivering sustainable finance is discussed in another chapter, emphasizing the creation of solutions aligned with client needs, the addition of ESG criteria to investment analysis, and engagement with companies to encourage sustainable practices. Recommendations include proactive client engagement on ESG integration benefits, the development of comprehensive investment strategies, and collaboration with companies for better sustainability disclosure.

Investment consultants are recognised as playing a vital role in advising asset owners on responsible investment strategies. The chapter dedicated to them recommends improving the quality and comparability of ESG investment analysis and promoting the adoption of climate-related financial disclosure recommendations.

The chapter addressing banks underscores their critical role in examining credit risks related to climate factors. Recommendations include integrating ESG issues into lending processes, developing green financial products, and collaborating to promote a sustainable financial system.

Credit rating agencies (CRAs) are advised to integrate sustainability issues into credit risk assessments, grasp the sustainability issues of sectors under review, and be transparent about their approaches. The need for capacity building to enhance the market for sustainability assessments is also highlighted.

Stock exchanges and securities regulators are called upon to ensure transparency and accuracy in information provided to market participants. Recommendations include improving sustainability information disclosure by companies and transparency around institutional investors’ ESG practices.

Companies are urged to recognise the environmental and social impacts of their operations, improve reporting standards, include ESG criteria in financial relationships, participate in benchmarking, and contribute to achieving Sustainable Development Goals.

Regulators play a crucial role in promoting sustainable financial practices. Recommendations include supporting the adoption of TCFD recommendations, initiatives for increased transparency, and collaboration to drive sustainability convergence. Regulators are encouraged to allow financial products aligned with sustainability goals and ensure consistency and timeliness in sustainability disclosures.

The paper concludes with a summary of key themes from a Finance Leaders’ Summit, highlighting actions needed for transforming the financial system toward sustainability. Themes include growing the culture of sustainable finance, improving ESG data quality and accessibility, aligning risk management with climate change, regulating to support the transition toward sustainability, and developing new financial products for transformational investments.