Commitment to sustainability is escalating across all players in the financial system 

•And to support and achieve the SDGs, the world needs to redirect just over 1% of the $379 trillion global financial assets annually, which seems plausible due to the realignment of all financial participants.

Just over 1% of global financial assets are needed to support sustainability goals •Countries responsible for >60% of global emissions have announced or are considering net zero targets by mid-century; thus, climate policies are expected to step up ahead of the COP26 meeting this November. Meanwhile, nearly $2 trillion of COVID green stimulus is accelerating sustainable developments and having a multiplier effect on private investments.

Governments are stepping up policies and direct financing for sustainable activities 

•Asset owners and managers are going beyond ESG integration as a risk management tool to having active contribution to SDGs and/or alignment with climate outcomes. At least 33 asset owners and 30 asset managers with >$5 trillion and >$9 trillion in AUM, respectively, have committed to net zero emission portfolios by 2050.

Asset owners & managers are increasingly seeking impact in addition to ESG risk management 

•Over 80% of global financial assets are located in developed countries while 70% of the SDG spending needs and >80% of global population are concentrated in developing countries. Financial incentives need to be put in place and/or structural risks (e.g., lack of institutional depth, inefficient financial systems, political uncertainty, etc.) need be addressed to spur investments in emerging markets.