Triggering a Domino Effect in Finance
In 2022, the Financial System Benchmark assessed 400 of the world’s most influential financial institutions on their progress in supporting a just and sustainable economy.
The benchmark provides insight into the disclosure and transparency of interconnected institutions within the global financial system; banks, insurance companies, pension funds, asset managers, sovereign wealth funds, development finance institutions and investment consultants. All 400 institutions in the benchmark directly or indirectly influence people, the planet, and money flows in and across developed and developing market economies. Against this backdrop, the benchmark covers governance, planetary boundaries and human rights and social issues.
This report uses the benchmark findings to highlight the state of play in the financial system across governance and climate and the relationship between them. It looks at progress on impact strategy and corporate policies, board-level oversight and remuneration through to gender, engagement and public policy. We overlay these with our findings on the progress of climate-related issues, including financed emissions, alignment with the Paris Agreement, target setting, processes and approach to fossil fuels, and engagement on climate issues.
Our objective is to show where solutions are already available to the financial system while some of the bigger blockages needing policy and global collaboration are being worked through. The aim is to improve peer-to-peer learning across industry silos and clarify which financial actors need to accelerate their role in triggering a domino effect within the system.