Changes need to be made to the way financial decisions are made to ensure economic activities are not coming at the expense of the environment, according to the Sustainable Finance Forum.
SFF co-chair and NZ Super Fund chief executive Matt Whineray. Photo: Supplied/NZ Super Fund
A report by the Aotearoa Circle's Sustainable Finance Forum (SFF), made up of representatives from banks, insurance companies, industry, Māori businesses and iwi, professional services, civil society, academia and government, has been nearly two years in the making and sets out a roadmap to building a more sustainable financial system by 2030.
"Our vision is for a financial system that is more resilient, inclusive, robust, and agile through incorporation of environmental, social and economic considerations in financial decisions," SFF co-chair and NZ Super Fund chief executive Matt Whineray said.
The report sets out three themes and 11 priorities with recommendations that provide for environmental, social and economic prosperity.
"The current system has proven good at the creation of financial wealth but has largely done so with less consideration of sustaining the quality of our land, water, climate and communities," Whineray said.
"Changes are needed to embed environmental and social considerations into market mechanisms and fiscal incentives, so ultimately capital allocation decisions by actors within individual businesses are aligned with our shared goals for the planet and its people."
However, the report does not set out a plan to achieve its goals.
"Driving the sustainable finance agenda in Aotearoa New Zealand will require ongoing leadership, commitment and funding from capital providers, capital users and the public sector," it says, adding that government participation will be critical for success.