Dombrovskis: We need investors to seize the opportunity to fund green transition

One of the top finance officials of the European Union has called for European and global investors to seize the opportunity to fund the transition to a sustainable and low-carbon economy before time runs out.

The plea comes from Valdis Dombrovskis, the former Latvian Prime Minister who is Vice-President of the European Commission, overseeing Financial Stability, Financial Services and Capital Markets Union.

He argued that capital markets are “overlooked” as a tool in the fight against climate change.

Writing in the foreword to a new study on SRI from Eurosif, Dombrovskis said: “So we need initiatives like the present SRI study to map and measure the growing market for sustainable investment.

“And we need action from EU co-legislators to reach agreements on the policy proposals we have put forward, still within the current political cycle of the European Parliament.

“But most of all, we need investors all over Europe and the world to seize the opportunity to fund the transition to a sustainable and low-carbon economy, before we run out of time.“If we can do that, we will not only help to preserve our planet and our way of life, but we will create millions of jobs in the process, and position Europe as a technological leader in the transition to a low-carbon economy.”

“We need initiatives to map and measure the growing market for sustainable investment.”

The study, now in its eighth edition, found “clear signs” of SRI becoming integral to European fund management.

ESG integration remains by far the preferred strategy, growing by 60% and now accounting for over €4trn of assets under management, the report says.

Engagement and Voting grew by 14%. The report also found that Impact Investing saw a 6-year compound annual growth rate (CAGR) of 52%, reaching €108bn, from only €20bn in 2013.

The report says: “We are bound to see more growth for this strategy in the next years, as it becomes increasingly aligned with Sustainable Development Goals (SDGs): a turnkey for investors.”