Financial market participants are becoming increasingly aware of the urgent need to redesign the financial system in a way that works for the planet and its people. The cost of maintaining the status quo is increasingly clear. The pandemic has further exposed the economy’s vulnerability to non-financial sources of risk. And while policymakers have taken steps to shield financial markets from the worst, the misalignment between markets and the real economy is unsustainable. Much has been done to build a more sustainable financial system, not least thanks to the actions and decisions of key players in OMFIF’s membership network of central banks, global public investors, and other financial market-makers. Driven and inspired by the energy and commitment of this growing community, we are pleased to launch the OMFIF Sustainable Policy Institute. The Institute will bring together public and private sector financial market participants for interactive, moderated exchanges in an off-the-record setting, complemented by a bi-monthly Journal and in-depth research reports.
Central banks broadly recognise that sustainability risks are economic and financial threats. They are moving to design measures to address these, including climate stress tests, sustainable reserves management and green monetary policies. Similarly, investors are looking to measure and manage the impact of sustainability factors on their portfolios and vice versa. Capital markets authorities, stock exchanges and bond issuers are working to create the supply to match this growing demand by developing and scaling up sustainable financial instruments. Developments in data technology and analytics are enabling better measurement by ratings agencies and data providers, and facilitating the integration of nonfinancial factors in financial decision-making. We look forward to having you with us on the Institute’s journey from the ‘why’ to the ‘how’ on all these fronts.