According to the Forum for Sustainable and Responsible Investment, managed assets that incorporated sustainable, responsible and impact (SRI) strategies grew from $8.7 trillion at the start of 2016 to $12.0 at the start of 2018. Financial institutions can turn to resource management solutions and sustainability planning to increase transparency, satisfy their investors, and reduce risk. There has been a growth rate of 38% in sustainable investing in the last 2 years and 58% of finance companies formally report their sustainability performance annually. The financial industry is rooted in understanding and accounting for risk to minimize liability in their policies, loans, and investments. This industry is also subject to heavy regulation.
Climate change and sustainability have become a high priority for the financial sector. Sustainable Supply Chains will be a growth engine for most industries. In the financial services sector, supply chains could be vast networks of organizations, consumers, and investors (more upstream than downstream). This sector traditionally has many more consumers than suppliers which presents an opportunity for sustainability initiatives and investment with and from consumers. Look to the financial sector to provide products and services to help consumers manage their environmental footprint.