Sustainability challenges and opportunities for banks, central banks and investors

• Robert Schuman Centre for Advanced Studies
• FBF: Florence School of Banking and Finance

This seventh online seminar takes place in the framework of the Challenges for Bank Board Members series, part of the FBF Bank Board Academy for Non-Executive Directors.

Sustainability is at the core of the EU green agenda and global concerns to preserve natural resources, with the objective to reach net-zero by 2050. Sustainability – in its environmental, economic, and societal dimensions – raises key challenges for public and private actors alike. They need to transform their approach, find the right instruments and policies, comply with new standards and rules (e.g. taxonomy, disclosures), and answer a strong demand from society. Banks and investors can find opportunities in revisiting their strategy, business models, and products within sustainable finance while ensuring business resilience. Central Banks are also actively examining the challenges and opportunities of sustainability for their [monetary policy, financial stability, and supervisory] functions. Both innovation and investment are critical to ensure climate change mitigation and transition.

This online debate will ask:

• What are the challenges and opportunities in integrating sustainability concerns in operational activities and strategies for banks, central banks, and investors?
• Should sustainability be a strategic priority?
• How can sustainability requirements be aligned with the interests of investors, shareholders, and generally EU financial end-users? Is this long-term objective compatible with short-term interests?
• What are the instruments in central banks’ policy toolkit to address sustainability challenges?
• What can be the role of independent board members in ensuring sustainability in the bank’s business model and strategies?
• What are the main elements that bank board members should look at in order to foster sustainability? Are there instruments to support boards in their actions?