UNDP-從碎片化到一體化：可持續(xù)金融中的社會(huì)問題（英）

UnitedNationsDevelopmentProgramme

FromFragmentationtoIntegration:EmbeddingSocialIssuesinSustainableFinance

Acallforpolicymakersandmarketpractitionerstoadvancethe

integrationofsocialrisksandopportunitiesintofinancialstrategies

UnitedNationsDevelopmentProgramme,2023.FromFragmentationtoIntegration:EmbeddingSocialIssuesinSustainableFinance.Acallforpolicymakersandmarketpractitionerstoadvancetheintegrationofsocialrisksandopportunitiesintofinancialstrategies.

September2023

Copyright?UNDP2023.OneUnitedNationsPlaza,NEWYORK,NY10017,US

Allrightsreserved.

Leadauthors

UNDP(AmandaFeldman;CamilleAndre)

Contributingauthors

UKFinancialConductAuthority(GozeDogu)

ReGenerate(HarryBrown)

PredistributionInitiative(DelilahRothenberg)

RightsCoLab(JoanneBauer)

JSGlobalAdvisory(PaulStuart-Smith)

PRI(DavideCerrato)

EditingandpeerreviewbyUNDPSustainableFinanceHub

CopyeditorHopeTraficanti(UNDP)

GraphicdesignOnurcanAcar(UNDP)

Disclaimer

‘TheviewsexpressedinthisWorkingPaperdonotrepresentthoseofthemembercountriesoftheUnitedNations,UNDPExecutiveBoardorofthoseinstitutionsoftheUnitedNationssystemthatarementionedherein.

Thecurrent‘polycrisis’hasshedlightonthesocialvulnerabilitiesoftheenergysystemandthedistributionalconcernsarisingfromprevailingmonetarypolicies.Moreover,ithasaccentuatedtheheightenedinequalitiesvisiblewithinandbetweencountriesasaresultofongoingenvironmentaldegradation.ItisimperativeforfinanceMinisters,centralbankgovernors,andfinancialsupervisorstorecognizetheinterconnectednessofsocio-economicinequalitieswithclimate-andenvironmental-relatedfinancialrisksandalignpricestabilitywithsocio-economicjusticeinsociety.

Accordingtothereport’sviewthatinequalityisasystemicriskthatcanbegeneratedendogenouslybythefinancialsector,thisnecessitatesmacroprudentialtoolstoaddresstheescalatingimbalancesinthedebtmarketwhichcanbesupportedbyfiscalpoliciesaimedatmitigatingthenegativeimpactofinequality.Significantly,thisreportalignswellwiththeongoingdiscussionssurroundingthereformoftheinternationalfinancialarchitecture.Itechoestheneedtoprioritizeenvironmentalandsocialobjectivesinpoliticaltrade-offsinmultilateraldevelopmentprogrammes,theallocationoffinancialflows,andthedesignofmacroeconomicframeworkstobringdebtjustice,aswellasdevelopmentfinancethatleavesnoonebehind.

MarcosNeto

Director,

SustainableFinanceHub,UNDP

Inrecentyears,thefinancialservicessectorhastakengreatstridestorespondtotheclimatechallenge.AgainstthebackdropoftheParisAgreementandcloserscrutinybygovernmentsandregulators,financialinstitutionsareincreasinglyfactoringclimateriskintotheirbusiness,riskandcapitalallocationdecisions.Theyareadaptingtheirbusinessmodels,andtheirlending,investmentandunderwritingactivities.Andtheyaredevelopingnewproductsandservicestosupporttheirclients’climatestrategies.

Whilewelcomingallthathasbeenachievedtodateonclimate,thistimelyreportencouragesthesectortodraw‘lessonslearned’toaccelerateprogressonsocialissues.Recognisingthehuman,developmentalandfinancialmaterialityofsocialissues,thereportcallsongovernments,regulatorsandfinancialinstitutionsto:supportadvancesinresearchanddataonthesystemicriskofsocio-economicinequality;adoptandimprovesocialstandards,disclosuresandtools;andrethinkthemacroeconomicdeterminantsofsustainablefinancescenarios.

Animportantmessageofthereportisthatenvironmentalandsocialissuesandimpactsareinextricablylinked.Climate,natureandsocialissuescannotbeconsideredinsilos;integratedthinkingisessential.Thereportalsoemphasisestheimportantrolestobeplayedbyallactorsacrossthefinancialservicessector,includinggovernmentsandregulators:public,privateandcivilsocietyactorsneedtocometogethertoembedsocialsustainabilityinfinance.

GozeDogu

SustainableFinance

andESGPolicyandAdvisory,

FinancialConductAuthority

Agrowingbodyofresearchdemonstrateshowinequalitymanifestsasasystematicandsystemicriskinfinancialmarkets,butpolicymakers,regulators,andinvestorsneedimprovedtoolsandfurtherresourcestounderstand,measure,andmanagethesedynamics.

Isinequalitytheonlysocialrisktofinancialstability?Whatprivatesectoractivities–amongstbothcompaniesandinvestors-contributetoinequality,andbyhowmuch?Atwhatpointdoesinequalitybecomeathreattofinancialstabilityandinvestors’portfolios,andwhatfinancialanalysistoolscanbeleveragedforthisassessment?Andifinvestorsaregoingtoaccountforthesesystematicandsystemicrisks,thenhowdoesthataltertraditionalinterpretationsofriskandreturn?

Thisreportintroducessuchquestions,aswellasthepropositionthatadjustmentstotheriskreturnassessmentcouldaltercapitalallocationdecisionstowardmoreregenerativeinvestments,ultimatelycuringimbalancedmarkets,reducingpolarizationamongstpeople,andsupportingpolicymakersandregulators,aswellasinvestors,intheirnearandlong-termgoalsandfiduciaryduties.

DelilahRothenberg

Co-FounderandExecutiveDirector,

PredistributionInitiative

Pressureisincreasingfrommultiplesides,notjustasthenegativeimpactsofrisingglobaltemperaturesincrease,butalsoduetoincreasingnegativeimpactsofsocialissuessuchassocio-economicinequalities,supplychainissues,theimpactsofwar,thecostoflivingandongoingmigration.Nottomentionacceleratingbiodiversityloss,theimpactsofecosystemdegradationandmanymore.Neverbeforehastherebeensuchaneedforacceleratedandexponentialsolutions.

Althoughwehavereachedapointofrelativematuritywithregardstothecorporatereportingonclimate-relatedissuesforinvestors,andtheglobalfinancesystemistransitioning,thereisstillalongwaytogo.Positively,thereisalotofenergyfromtheglobalaccountingcommunityfocusingonthisissue.However,thereisalsoariskthatthetransitionmaybeundermined.

Intherealworld,socialandenvironmentalissueshaveneverbeenseparate,howeverinrecentdecadesthefinancialandcorporatefocusonclimatechangehasbeenquitesingular.Whilethisenabledittoreachthematurityithastoday,itisnowtimetore-coupleitwithsocialissuesandsystemsthinking.

Thisreportrecognisestheinterconnectednessbetweensocialandenvironmentalissuesandencouragespolicymakerstoacknowledgethisandenactpoliciesthatreflectthatonecannotbesolvedinisolation.Withhindsightwecannowlearnhowweacceleratedglobalattentionontacklingclimatechangeandapplytheselessonstoajoined-upapproachtosustainablefinance.

HarryBrown

Director,

ReGenerate

Theinfluential2022researcharticle“TheEconomicsofExtremeRisk”co-authoredbyNicholasSternandJosephStiglitz,incollaborationwithCharlotteTaylor,describestheseriousshortcomingsinunderstandingofthe“deepuncertaintyandextremerisk”facingtheworldeconomicsystemfromclimatechange.Inournewlypublishedpaper,“FromFragmentationtoIntegration”,weshineaspotlightontheparallelneedforabetterunderstandingofanotherofthefundamentalrisksfacingthefinancialsystem:social-inequality.

Growingsocial-inequalitybetweenandwithincommunities,countriesandcontinentsispropellingpoliticalpolarisation,drivingmassmigrationandincitinggeo-politicaltension.Thesedangerousdevelopmentswillexacerbatetheextrememarketvolatilityanddislocationswecanalreadyexpectoverthenextfewyearsastheimpactsofclimate-relatedphysicalandtransitionrisks-andofdiminishingbiodiversity-becomeevermoreacute.Achievingabetterunderstandingoftheseinter-relatedrisksandintegratingthemfullyintofinancialstabilityanddisclosureframeworksatamacro-economicandacorporatelevelshouldthereforebeprioritiesforpolicymakersandotherleadingactorswithintheglobalfinancialsystem.

SustainabilityconsultantsJSGlobalAdvisorywerepleasedtocontributetothestructuringofthispaper,drawingontheircollectiveexperienceofworkingwiththeTCFDSecretariatonthedevelopmentoftheTCFDrecommendationsandwithcorporateclientsonclimate-relatedriskandreportingaswellasbroadersustainabilityissues.

PaulStuart-Smith

ManagingPartner,

JSGlobalAdvisoryLLP

Theclimatecrisisisaninescapablerealityforpolicymakers,regulators,andfinancialinstitutions.However,growingresolvetoaddressthecrisisisthreatenedbytheongoinginjusticeofsocio-economicinequality,whichpresentsamajorbarriertoadvancingaGreenAgendathroughtheJustTransition.

AtRightsCoLab,wearerespondingtogrowinginvestorinterestinsocialrisksandtheintegrationofenvironmental,social,andgovernancecriteriaininvestmentdecisions.Onewaywedothisisbycreatingdecision-usefultoolsthatallowinvestorstounderstandthesystemicandsystematicrisksposedbyinequality,aswellastheimpactsthatcorporatebehaviorcanhaveonthehumanrightsofaffectedcommunities.

Throughoutourwork,weseehowinvestorsandcompanieslackinformationonhowexternalizingsocialcostsleadtobothenterpriseandsystem-levelrisks.Wewelcomethistimelypaper,whichbuildsontherapidevolutionoftheclimatechangeagendaandthesuccessfulengagementofthefinancesectoronclimate,andshedslightonthemissingelementofsocio-economicinequalitythatcanaccelerateactiononthesocialtransformationagendanecessarytoachieveclimategoals.Thispaperlaysoutkeyrecommendationsonhowfinancialsectoractorscandirectcapitalintomoresustainableeconomicactivities.Equallyimportant,itdefinesanagendaforresearcherstoelucidatethespecificwaysinwhichsocio-economicinequalitycontributestosystemicandsystematicfinancialrisk.

JoanneBauer

Co-Founder,

RightsCoLab

TableofContents

10

FromFragmentationtoIntegration:EmbeddingSocialIssuesin

SustainableFinanceAcallforpolicymakersandmarketpractitionersto

advancetheintegrationofsocialrisksandopportunitiesintofinancialstrategies.

?

ACalltoAction

10

?

Context

11

?

Whyisintegrationimportantnow?

14

A.Supportresearchonthesystemicriskofsocio-economic

24

inequalityissuesforfinancialstability

24

?

Recommendation1.Developdataanalysiscapabilitiesoninequality,including

researchonitsrelationshipwiththeprivatesectorandonhowsocialrisks

affectfinancialstability

?

Recommendation2.Preventsystemicrisktriggeredbyinequality

2

7

B.Adoptandimprovesocialstandards,disclosuresandtools

29

?

Recommendation3.Improvedata,disclosureandtransparencyonsocial

30

risksandimpacts

?

Recommendation4.Encourageinvestorstewardshipandassetallocation

33

basedonbothclimateandsocialanalysis

?

Recommendation5.Evolveauditingandassurancepracticestoassess

34

social-relatedfinancialrisks

?

Recommendation6.Re-structurethedefinitionofaccountingvalue

35

C.Rethinkingmacroeconomicsdeterminants

37

ofsustainablefinancescenarios

?

Recommendation7.Re-coupleclimateandsocialriskandopportunity

37

analysis

?

Recommendation8.Mobilizefinanceforsocialprojectsthroughthe

38

multilateraldevelopmentbankreformagenda

ActionMatrix

41

FROMFRAGMENTATIONTOINTEGRATION:

EMBEDDINGSOCIALISSUESINSUSTAINABLEFINANCE

10

ACALLTOACTIONCONTEXTWHYISINTEGRATIONIMPORTANTNOW?

SUPPORTRESEARCHADOPTANDRETHINKTHE

SUMMARYABCACTIONMATRIX

ONTHESYSTEMIC...IMPROVESOCIAL...MACROECONOMIC...

A

B

C

ACalltoAction

Thisreportaimstospurmomentumamongallactorswithinthefinancialsystemtoaddress

inequalityandsocialimpacts.Drawinginsightsfromtheclimateagenda,itshedslighton

howtocatalyzeactionatthepolicyandregulatorylevels,buildingonexistingsustainable

financeinitiatives.

Basedonthecollectiveexpertiseofseveralinstitutions1andaglobalconsultation,itprovides

keyrecommendationsforgovernments,regulatorsandfinancialinstitutionstodriveprogress

inthreecriticalactionareas:

Supportresearchonthesystemicriskof

socio-economicinequalityforfinancialstability

Thefollowingbuildingblocksareproposedforfinancialregulators2toimplementtherecommendation:

Increasecapabilities

fordataanalysisoninequalityandsocialrisksposedbytheprivatesector,includingresearchontherelationshipbetweentheprivatesectorandinequality,andonhowsocialrisksaffectfinancialstability.

Takeprecautionarymeasures

topreventsystemicrisk

triggeredbyinequality.

Adoptandimprovesocialdisclosurestandards

andriskmanagementtools

Thefollowingbuildingblocksareproposedforfinancialregulatorsandsupervisorstoimplementtherecommendation:

Improve

data,disclosureandtransparencyonsocialimpacts,dependencies,risksandopportunities.

Evolve

auditingandassurancepracticestoassesssocial-relatedfinancialrisks.

Encourage

investorstewardshipandassetallocationbasedonclimateandsocialanalysis.

Re-structure

theapproachestoaccountingvalue.

Rethinkthemacroeconomicdeterminants

ofsustainablefinancescenarios

Thefollowingbuildingblocksareproposedforfinancialregulators2toimplementtherecommendation:

Re-couple

ClimateandSocialRisk

andOpportunityAnalysis.

Mobilizefinance

forsocialprojectsthroughthemultilateraldevelopmentbankreformagenda.

1TheUnitedNationsDevelopmentProgramme(UNDP),theUnitedKingdomFinancialConductAuthority,ReGenerate,

PreDistributionInitiative,RightsColab,PRIandJSGlobalAdvisory.

2Financialregulatorsincludeparliaments,governments,ministriesandpublicinstitutionsinchargeofdeterminingthe

directionofthefinancialsystem,affectingfinancialmarkets,financialactorsandfinancialassets

3Financialsupervisorsincludecentralbanksandauthoritiesoverseeingspecificfinancialsectors.

ACALLTOACTION

CONTEXT

WHYISINTEGRATIONIMPORTANTNOW?

SUMMARY

SUPPORTRESEARCHADOPTANDRETHINKTHE

ABC

ONTHESYSTEMIC...IMPROVESOCIAL...MACROECONOMIC...

ACTIONMATRIX

11

FROMFRAGMENTATIONTOINTEGRATION:

EMBEDDINGSOCIALISSUESINSUSTAINABLEFINANCE

Context

AstheworldeconomyrecoversfromtheCovid-19pandemic,policymakersfaceacomplexwebofinterconnectedchallengesincludingheightenedgeopoliticaltensions,climatechange,biodiversityloss,record-highdebt,newmonetarypoliciesandpersistentinequalities.Somegloballeadersrefertotoday’schallengescollectivelyasa‘polycrisis’.4

Atthecentreofthesechallengesarepeople–communitiesandnations–whoseerisksandopportunitiesfortheirlivelihoodsandrightswithinanyproposedsolution.Ensuringtheireconomicsecuritywhileaddressingclimatechangeandothercriticalchallengesisessentialtoavoidincreasedpolarizationandfostercollaborative,constructivepathsforward.

Globalleadersarebeginningtoacknowledgethataddressingsocio-economicinequalityandthecost-of-livingcrisisiscriticaltofindingsoundsolutionsforamultitudeofotherproblems,includingclimatechange,healthinequityandgenderinequality.5Unfortunately,economiesthatalreadylackedresiliencegoingintothepandemichavefacedheightenedtensions.Between2011and2019,therewasa244percentincreasegloballyinriots,generalstrikesandanti-governmentdemonstrations.6Associo-economicinequalityindevelopedcountrieshasrisen,sotoohasprotectionistsentiment,threateningtoreverserecenteconomicgainsindevelopingcountries.

AccordingtotheInternationalMonetaryFund(IMF),globalfinancialfragmentationresultingfromanescalationofgeopoliticaltensionscanexacerbatetheriskoffinancialstressinthelongterm.7Inits2019GlobalFinancialStabilityReport,theIMFnotedthathighglobaldebtburdensleaveeconomiesunpreparedandlackingresilienceinthefaceofpotentialdownturns.Asmarketsandstakeholdershaveprocessedtheshocksofthepandemic,manyleadershaveobservedthatmarketshaveprioritizedefficiencyandprofitsoverresilienceandstability.Sentimentincorporatesupplychainsappearstobeshiftingfroma‘just-in-time’economicmentalitytoa‘just-in-case’approach.8

Economicfragilityhasbeenmetwithemergencyfiscalandmonetaryinterventions,withvastinequalitiesandinefficienciesatplay:asoflate2022,53percentoftransfersandsubsidieswerebeingspentinhigh-incomecountries,whereaslow-incomecountriesaccountedforonly1percentofthepolicyresponse.9Whilegovernmentinterventionswerecriticallyneededinthefaceofthepandemic,suchsupportarguablywouldnothavebeenneededhadtheprivatesectoroperatedinamoresustainablemanner.

4

/asia-pacific/publications/polycrisis-and-long-term-thinking-reimagining-development-asia-and-pacific-

foresight-brief

5

/publications/undp-development-future-series-synergies-jointly-addressing-climate-change-health-equity-

and-gender-equality

6

/content/dam/kpmg/xx/pdf/2022/05/social-inequality-as-a-business-risk.pdf

7IMF.2023.GlobalFinancialStabilityReport:SafeguardingFinancialStabilityamidHighInflationandGeopoliticalRisks.Washington,DC.

8

/content/f4fa76d9-aa11-4ced-8329-6fc8c250bc45

9

/publications/dfs-cost-living-crisis-update-diverging-food-and-energy-prices-diverging-policy-responses

ACALLTOACTION

CONTEXT

WHYISINTEGRATIONIMPORTANTNOW?

SUMMARY

SUPPORTRESEARCHADOPTANDRETHINKTHE

ABC

ONTHESYSTEMIC...IMPROVESOCIAL...MACROECONOMIC...

ACTIONMATRIX

12

FROMFRAGMENTATIONTOINTEGRATION:

EMBEDDINGSOCIALISSUESINSUSTAINABLEFINANCE

Policymakersnowaimtonavigateevenhigherglobaldebtlevelsandpersistentinflationbyincreasinglong-termsocialandenvironmentalresiliencewhilefuellingprogressontheSustainableDevelopmentGoals(SDGs).Buttheirworkwillbedifficultwithoutpolicyandregulatoryreformwithinthefinancialsystemandprivatesector.

Businessesandfinancialmarketshavecrucialrolestoplayintheproductionanddistributionofwealthandresources.However,thefinancialsystemhasevolvedinawaythathascreatedvastimbalances,whichnowposeriskstofinancialmarketsandeconomies.

The2015AddisAbabaActionAgendaprovidedaglobalframeworkforfinancingsustainabledevelopment,withtheSDGsatitscore.10Thisagendahassupportedthedesignoffinancialinstruments,toolsandmethodologiesthatchannelfundingtowardsSDG-alignedprojects,throughimplementationtoolssuchasUNDP’sIntegratedNationalFinancingFrameworks(INFFs).Yetaccordingtothe2021UnitedNationsSDG2021report,theCOVID-19pandemicreversedprogress–withextremepovertyrisingin2020forthefirsttimesincetheAsianFinancialCrisisofthelate1990s.

Whileincomeinequalityhadbeendeclininginmanycountriessincethe1980s,itisnowontheincrease,especiallywithinadvancedeconomies.11In2021,therichest10percentgloballyownedbetween60percentand80percentofthewealth,whilethepooresthalfownedlessthan5percent.12OtherSDGperformanceindicatorsonhunger,health,education,andgenderequalityhavealsodeclinedglobally.13AccordingtotheUnitedNationsFinancingforSustainableDevelopmentReport2023,14shockstriggeredbyhigherfoodandenergyprices,andrisinginterestrateshavetriggeredeconomiccrisesinsomecountries,pushingmanyfamiliesintohungerandpovertyforthefirsttime.

10

/esa/ffd/publications/aaaa-outcome.html

11Chancel,L.2019.TenFactsaboutInequalityinAdvancedEconomies.WIDWorkingPaper2019/15.

https://wid.world/

document/ten-facts-about-inequality-in-advanced-economies-wid-world-working-paper-2019-15/

12WorldInequalityLab.2022.WorldInequalityReport(p.12).

https://wir2022.wid.world

13

/UNSDGimplementation#:~:text=The%20UN%20System%20SDG%20Implementation,over%2050%20UN%20

system%20entities.

14

/2023-FSDR-preparatory-materials

ACALLTOACTION

CONTEXT

WHYISINTEGRATIONIMPORTANTNOW?

SUMMARY

SUPPORTRESEARCHADOPTANDRETHINKTHE

ABC

ONTHESYSTEMIC...IMPROVESOCIAL...MACROECONOMIC...

ACTIONMATRIX

13

FROMFRAGMENTATIONTOINTEGRATION:

EMBEDDINGSOCIALISSUESINSUSTAINABLEFINANCE

ANoteonTerminology

Thispapersupportsactionsonrisksandopportunitiesforthefinancialsystemthatcausesignificantimpactsonpeople.

?‘Socialissues’arefundamentallyaboutimpactsonpeople–eitherpositiveornegative.Theseimpactsmaybeonindividuals,groups,orsocieties,andarerelatedtorisksandopportunities.Thisincludestheeffectsofsupplychains,workforcecompositions(employees,contractors,gigworkers,etc.).businessoperations,productsandservices.Inthispaper,socialissuesrefertostatesofaffairsthatpresentrisksoropportunitiesforthefinancialsystemandtheinstitutionswithinit.Inequalityisacriticalsocialissuethatpresentsariskforfinancialandnon-financialinstitutionsalike.

?‘Inequality’referstoadisparityofdistribution,andincludesinequalitiesofincome,wealth,opportunity,accesstohealthcare,educationandskills.Thispaperfocusesonsocio-economicinequality,whichcomprisesverticalinequality(amongindividualsorhouseholds)andhorizontalinequality(betweenculturallydefinedgroupssuchasgender,race,ethnicityandability).Inequalitymaybemeasuredwithincountries(e.g.betweenurbanandruralareas)andbetweenthem.

Bothtermsencompasspositiveandnegativeimpactsonpeopleandsociety,andrelatedrisksandopportunitiesforbusinessandfinance.Theseconceptswillsetthebackdropfortheevolutionofsocialandinequalitydisclosurestandards,guidedbyexistinghumanrightsstandards,whichareinturngroundedintheUnitedNationsGuidingPrinciplesonBusinessandHumanRights,theOECDGuidelinesforMultinationalEnterprisesandotherframeworks,principlesandcommitments.

Formoreinformation,referto:

/wp-content/uploads/2022/12/Social-standard-proposition_Dec05.pdf.

ACALLTOACTION

CONTEXT

WHYISINTEGRATIONIMPORTANTNOW?

SUMMARY

SUPPORTRESEARCHADOPTANDRETHINKTHE

ABC

ONTHESYSTEMIC...IMPROVESOCIAL...MACROECONOMIC...

ACTIONMATRIX

14

FROMFRAGMENTATIONTOINTEGRATION:

EMBEDDINGSOCIALISSUESINSUSTAINABLEFINANCE

Whyisintegrationimportantnow?

Investorsandcompaniesneedabetterunderstandingofsocialissuesthroughmulti-disciplinaryresearch,standardsforbusinessmanagementandimpactmeasurement,andcollaborationtoaddressthepolycrisisbydirectingcapitalintomoreresilientandprofitablelong-terminvestmentopportunities.TodriveprogressontheSDGsandmaintainhealthyandstablemarkets,itiscriticalforfinancialactorsrecognizetheprofoundlinksamongpoverty,inequality,degradationoftheplanet,unequalandunsustainableeconomicgrowth,andsocialexclusion.15

Therearethreecriticalreasonsforsustainablefinanceinitiativestopayattentiontosocialissuesandinequality:

i.Socio-economicinequalityisasystematicriskandmayposesystemicrisk.Numerousstudiesdemonstratethatsocio-economicinequalitycanleadtoreducedmacro-economicperformance,fosteringsystematicriskincapitalmarkets.Thedynamicsthatcontributetoinequalityalsomanifestassystemicriskinfinancialmarkets.Forinstance,concentrationsofequityordebtinsomemarketsversusotherscanleadtoinequalityandalsocreateassetbubblesorcreditcrises.Inaddition,researchindicatesthatthegrowthofthefinancialsectorislinkedtogrowinginequality16andthatmoutinginequalityisdrivingacascadeofnegativeconsequencesforbusinessandsociety.17ThisislinkedtoRecommendationA.Supportresearchonthesystemicriskofsocio-economicinequalityforfinancialstability.

ii.Impactsonpeopepresentfinanciallymaterialriskstoinvestorsandcompanies.Agrowingawarenessofbusinessandinvestmentdependenciesonpeopleisbeginningtoshifttheprivatemarketfromanarrowfocusonnear-termfinancialprofitsofindividualinvestmentstoarecognitionthatmarkethealthdependsonthehealthofhumanandnaturalsystems.ThisislinkedtoRecommendationB:Adoptandimprovesocialdisclosurestandardsandriskmanagementtools.

iii.Socialissuesareintegraltoachievingclimategoals.Considerableprogresshasbeenmadeinmobilizingcapitaltomoveawayfromcarbon-intensiveindustriestowardagreenereconomy.Atthesametime,thereisconcernaboutthistransitionamongthosewithlesspowerandfinancialresources,whoaremostlikelytobeleftbehind.Whilesomepopulationshaveexpressedsupportfora