This paper looks at the steps that the UK has taken towards a sustainable financial system shaped by its role as a global financial centre and a distinctive dynamic between social entrepreneurs and civil society organisations, market innovation and policy frameworks.The City of London is not only home to some of the world’s largest financial markets, but also to a range of sustainable finance initiatives that are setting the agenda both domestically and internationally.

Following the financial crisis there has been a shift in the way in which sustainability is being pursued, moving from institutional to a systemic approach. Looking across the system, five key avenues of change within the UK can be identified, all of which have direct or indirect implications for the rules that govern the financial system: Ethical and impact finance; Institutional stewardship; Enhancing capital markets; Prudential governance; and Public balance sheet.

The paper goes on to make recommendations on enhancing the UK’s leadership on sustainability.

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Publication Type: 
Country Papers
FI Publication Date: 
Thursday, January 14, 2016