“Change the System, Not the Climate”: A Common Demand in the Climate Movement
We gathered a group of senior professionals within banking, insurance, investment management and academia to view the film “Outgrow the system” and conducted a workshop on how the Financial Service Industry can take an active role in the transformation towards a more sustainable future.
About the film “Outgrow the system”
Beyond the narrow mainstream debate and the teachings of business schools, numerous new economic ideas and practices are emerging. They challenge old assumptions and offer fresh perspectives on how we can reorganize our production and consumption, in order to ensure our survival as a specie on this planet.
“Outgrow the System” aims to bring these transformative ideas to the forefront. The film envisions a world where social movements worldwide can rally behind positive visions instead of merely opposing dystopias. They wish to empower viewers to engage in discussions about economic models and to foster hope that change is not only possible, but already underway.
Climate change will require large scale transformations
As EBA states in their recent consultations on ESG risks; climate change, environmental degradation, social issues and other environmental, social and governance factors are posing considerable challenges for the economy that impact the financial sector. The risk profile and business model of institutions may be affected by ESG risks, in particular environmental risks through transition and physical risk drivers.
For the Financial Service Industry, the ESG driven transformation is about risks to be managed but also grasping business opportunities. The Financial Service Industry should take an active role being a driving force to create positive cascading effects in the transformation.
During the workshop following the film screening, participants elaborated on key questions such as:
- What visible signs of transformation can we see already?
- What needs will private and corporate customers have in the transformation?
- What could be the driving force for change within the Financial Service Industry and what steps could we take right now?
It is clear for everyone that the need for change is strong, and the younger generation will be a strong driving force. Transformation has already started, and everyone must take ESG factors into account to gain commercial success or to prevent commercial failure. Clear incentives and a clear transparent pathway into a new sustainable future will be key to accelerate the transformation. It will be of utmost importance that different regulations, policies, industry development and financial services transformation are aligned to meet our common objective to have a more sustainable future.
Key takeaways
Mixing progressive ideas about future economic models, academic research, industry knowledge and financial service perspectives is a powerful way to induce different areas of expertise to innovate on how to address the challenges at hand. Managing ESG is not just about managing risk but also about how to outline the strategy and to create sustainable business models for the future.
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