Key Takeaways:
- 60% of sustainable finance policies now focus on supporting the economic transition, integrating sustainability into financial decision-making.
- Investor engagement with policymakers remains strong, with 55.7% of signatories involved, and PRI facilitating over 100 meetings and 50 events in 2024.
- ISSB Standards gain traction, with over 1,000 companies referencing them and more than 30 jurisdictions incorporating them into disclosure regulations.
Embedding Sustainability in Policy Frameworks
The PRI’s 2024 regulation database reveals that sustainable finance policy is increasingly aligned with economic transition goals, helping investors manage financial and sustainability risks. Governments are adopting whole-of-government strategies to address net zero, biodiversity loss, and human rights concerns.
In 2025, UN PRI will continue supporting signatories with policy research and analysis, focusing on financial and economic policy issues.
Growing Investor Engagement with Policymakers
Investor involvement in policy discussions remained steady, with 55.7% of signatories engaging directly or through collaborations. Notably, 12.1% of previously inactive signatories began engaging in 2024, with Europe (13.5%) and Asia (18.1%) showing the highest increases.
To foster dialogue, PRI hosted over 100 bilateral and group meetings and nearly 50 policy events, including its annual policy conference.
ISSB Standards Gain Momentum
A major milestone in 2024 was the widespread adoption of ISSB Standards into securities disclosure regulations. Over 1,000 companies referenced ISSB in reporting, and more than 30 jurisdictions are moving toward regulatory adoption.
MSCI data shows 73% of global listed companies report GHG emissions, though the U.S. lags at 49%. Climate disclosures are becoming a normative expectation across markets.
Regional Policy Highlights
- Australia: Established the Net Zero Economy Authority to oversee the transition.
- Japan: Asset owners urged to integrate sustainability into investment decisions.
- Canada: Pension risk guidelines updated to require ESG considerations.
- EU: Proposed a 90% emissions reduction target by 2040.
- UK: Advanced sustainable finance regulations and anti-greenwashing rules.
- U.S.: Since the Inflation Reduction Act, clean tech and infrastructure spending reached $493 billion, up 71% over two years.
Looking Ahead to 2025
Key sustainable finance trends include:
- COP30: Stronger climate policy focus in Brazil, advancing net zero strategies.
- EU Regulations: Expected debates on streamlining CSRD and CSDDD compliance.
- U.S. Policy Challenges: Federal climate action faces resistance, but state and local leaders reaffirm commitments.
- Global Coordination: Sustainable finance will play a larger role in G20 and UN financing discussions.
PRI remains committed to helping investors navigate regulatory changes and ensuring responsible investment continues to shape global finance in 2025.
