The next frontier to finance sustainable development

Despite the global financial crisis and coronavirus (COVID-19) pandemic, the value of financial assets held by new actors in global capital markets continues to increase. The financing gap to achieve the 2030 Agenda represents only 1% of the hundreds of trillions of dollars held in the global financial system. However, financing is not aligned in support of the global goals, as demonstrated by rising equalities and the lack of accountability for measures of sustainability. That the root cause of the crisis is not financial makes it all the more urgent to better understand environmental, social and governance factors that impact the long-term risk-adjusted returns on investments. This chapter explores how government leaders are taking action to advance alignment of the global financial system in favour of more resilient, inclusive and sustainable development.