Susan Brown, assistant secretary general and director bureau of external relations and advocacy at the UN Development Programme; John Murton, senior sustainability advisor at Standard Chartered Bank; and Andrew Wilson, deputy secretary general at the France International Chamber of Commerce, discussed how climate resilience and sustainability are being prioritised by corporate banking institutions. The session was moderated by Tamara Singh, managing director and senior advisor in regional programmes in Singapore at The Nature Conservancy.

Brown touched on how the advent of digital finance can bring the underserved into the financial ecosystem, consequently building stronger economies, stronger SMEs, and better investment spaces. She highlighted that it is essential to align prudence and profit in business practices to address climate change. Brown said that there are opportunities in biodiversity bonds, climate bonds, conflict bonds, and more in emerging economies with high populations and GDP growth, and it is an opportunity that can be made in everyone’s interest, therefore should be explored further.

Murton stated that it is the responsibility of banks to:

advise clients when their equities are at risk for failing to adapt to climate change, identify economic changes brought about by climate change, and to provide clients with investment opportunities in sustainable sectors.

He noted that the insurance industry has been slowly retracting insurance for properties in areas prone to extreme weather due to climate change, like in Florida, indicating how imperative it is to address the environmental issues impacting our world and social issues in which people are being left unprotected.

The conversation moved to discussion comparing the public and private sector investment in sustainable development. Brown explained the significance of the work undertaken by the UN:

“Those of you who aren’t multilateral bankers don’t know much about what we do, but what we do every day helps you because it helps de-risk your operating environment. We do this for you, but we are paid to do it primarily by governments from the West. The big overseas development and funders that have put money towards us for 60 years to work on development in 170 countries around the world. What we do, is work on sustainable development goals. Specifically in the finance space, we help provide advice to help get loans out the door for a number of multilateral development banks.”

Brown highlighted that the public sector needs to recognise and address climate risks, however defunding will impact the prioritisation of sustainable development goals. $50 billion will be cut from overseas development aid in 2026, meaning that the UN will do less and there will be a greater onus on private sector investment. Collaboration is key to close this risk gap and keep the momentum on climate action.

There is an evident move away from sustainable investments in the public sector which is echoed around governments in the US and Europe. As a result, Murton agreed with Brown, the business community must take on more responsibility. He expanded that the industry needs to be more strategic with public finances:

“I think there’s a strong case to be made for community thinking about the operating role of development banks. In particular, we need to shift away from loans to more early-stage grants, technical assistance, institution building, and also equity investments that we know can be capitalistic.”

Murton stated that building resilience is essential to tackle climate change. He outlined the outlook for Standard Chartered when approaching sustainable investing, asking “how do we make bankable, really important things like circular economy, adaptation to climate change, voluntary carbon markets, nature and biodiversity.”

Murton continued that aligning profit and purpose to these spaces will distinguish their bank, making clients “stickier” and offering a purposeful and profitable service.

Wilson highlighted that in a connected economy, “Leaving challenges unchecked overseas can actually inflict a cost at home," meaning that governments need to be approaching the climate crisis as what it is: a global issue. He pointed out how Western governments label themselves as “climate leaders”, but only speak on domestic policy and investment. He emphasised that governments need to be “held to account in terms of what they do beyond their borders” when it comes to climate.

Closing the panel, Murton stated that “visionary leadership” and “strategic collaboration” are key for addressing challenges to sustainable development. Brown added that innovation, policy clarity, and regulatory certainty are essential to progress in sustainable investment and development.