Realisatie: Yonit - Copyright © 2019
Even though the world economy relies on a limited stock of natural capital, the value of these resources – the goods and services provided by ecosystems – has been underestimated. They are usually considered to be invisible assets. Awareness of the value of natural capital and the flow of ecosystem services it provides is increasing, but translating lessons from natural capital research to action is complex. This is why NewForesight was commissioned by the Netherlands Enterprise Agency (part of the Ministry of Economic Affairs) to identify the necessary steps for a green transition in finance.
Agencies of the Dutch Government and NewForesight frequently join forces to create an enabling environment for private and public organization collaboration. To incentivize greener policies in the financial sector, NewForesight conducted a system analysis based on our sustainable market transformation theory. This was presented to the Community of Practice Financial Institutes and Natural Capital (CoP FINC), a coalition consisting of leading banks, pension funds and insurance companies in the Netherlands, Members include the ASN Bank, ABN AMRO, Achmea, FMO and ING.
By using our sustainable market transformation theory, we analyzed the state of the green transition in finance in the Netherlands. We concluded that the development of sustainable investment in the Netherlands has passed the first phase, as small specialized retail banks and a few small private investors are entering the market, and that it is entering the second phase (take-off). It is evident that large retail banks are now entering the arena of green finance. Regarding climate change, the financial sector is currently in the take-off phase, which is characterized by highly ambitious frontrunners and some mainstream players moving slowly. It is therefore time to move to phase three, the critical mass phase. This analysis was used in the comprehensive report of the CoP FINC, Finance for the planet.
For more insights into the analysis and our recommendations, read our paper on natural capital.