This paper, Towards a Performance Framework for a Sustainable Financial System, is intended to serve as a window on the Inquiry’s analytical approach, providing a deeper understanding of the unifying criteria for evaluation of multiple market designs for financial systems in a variety of economic, political and social settings. It is also intended to provide a foundation for investors and corporate management and policymakers, including central bankers, finance ministry professionals, market regulators as well as legislators, regulatory and executive officials, to shape consideration of the sustainability of their financial systems. Finally, it is hoped that this paper will inspire and inform further inquiry into the relationships between market designs and sustainability and inclusiveness by academics and other researchers. In short, this paper is intended to provide structure to an entirely new convention for understanding the relationships between financial systems and sustainability and inclusiveness.
The US financial system is undoubtedly among the largest, most innovative and most sophisticated in the world. It is also clear that this is both a benefit and an impediment to non-governmental investment in sustainability and inclusiveness.
The Inquiry into the Design of a Sustainable Financial System has been initiated by the United Nations Environment Programme to advance design options that would deliver a step change in the financial system’s effectiveness in mobilizing capital towards a green and inclusive economy.