The World Sustainable Finance Association (WSFA) promotes sustainable finance theories and practices worldwide to find innovative long term solutions to complicated sustainability issues, and facilitates communication among investors, corporations, policymakers, and academia who are interested in better integrating sustainability concerns with economic activities.
Join in WSFA will help you with professional development.
Join in WSFA will help you with new client, investor, employee, and employer acquisition.
Join in WSFA will help you to find your passion.
Find the 10 reasons to join WSFA here.
WSFA also manages the standards of the Certified Sustainable Finance Analyst (CSFA™) and provide CSFA™ training through its partner: the Sustainable Finance Institute.
The World Sustainable Finance Association is also advocating the World Sustainability Museum - the world's first and only museum dedicated to the United Nations Sustainable Development Goals (UN SDGs) and best practice cases from around the world.
Sustainable Finance is the broadest heading. According to the European Commission (EC), it refers to the process of taking account of environmental, social and governance considerations when making investment decisions, leading to increased investment in longer-term and more sustainable activities.
The meaning of sustainability is rooted in the notion of sustainable development, as advanced by Brundtland (1987). The Global Sustainable Investment Alliance (GSIA) estimates that $30.7trn at the start of 2018 were in “sustainable investing assets”.
In a broad sense, Sustainable Finance is often interchangeable with the following terms:
Sustainable finance and investing is an area of increasing interest to the financial community, and investors around the world increasingly use Environmental, Social and Governance (ESG) considerations and analysis as a practical method for ensuring they are investing in high quality companies and projects. With global sustainability challenges increasing and meaningful millennial participation in markets fully anticipated, trillions of dollars are beginning to shift into this new area. The battle for future financial performance and market share may well be won by those who respond best to this new investment paradigm shift.
Sustainable finance and investing as an investment philosophy and practice is still new. Sustainable investors and leaders are often those who “woke up” to ESG issues and concerns over the course of their careers. They also are now enjoying economic benefit from getting involved and actively solving these problems. There is a mindset change well underway, and related skillset demand is extremely high. Such skillsets include becoming multi-level systems thinkers, actively involving stakeholders in decisions, integrating ESG considerations into traditional models of valuation as well as having a long-term mindset and the courage to challenge traditional approaches.
ESG concerns are becoming a core part of the overall strategy plan for many financial institutions, public companies, private companies, venture capitalists and governments alike. Western financial institutions now are required to champion an ESG approach to win business; stock exchanges require public companies to report on ESG, and governments and investors around the world are increasingly establishing sustainable business incentives using ESG analytical methodologies.
Firms are divesting from unethical businesses, and investing in performing ESG engagement and stewardship with their clients on ESG issues and topics, while others are starting up completely new funds with novel focus on areas such as ‘Impact Investing’ and ‘Climate Tech VC’.
Companies and financial institutions that identify sustainability leaders, give them necessary training and opportunities, will be able to reach mandated sustainability and investment goals more quickly. They will be more successful through the current tumult, and make themselves more attractive to long-term investors and their clients.
WSFA is a not-for-profit organization. Your support and contributions will enable us to better serve our members, meet our goals and improve conditions. Your generous donation will fund our mission.