AIA WELCOMES UK GOVERNMENT'S UPDATED GREEN FINANCE STRATEGY

As signatories of the green finance education charter, AIA welcome the UK Government’s updated Green Finance Strategy, with a specific focus on the importance of education and training to reach net zero.

Today (April 3^rd) the UK Government published the updated Green Finance Strategy, with a greater emphasis on the importance of capacity and capability-building to support the UK’s net zero ambitions, and its recognition of the key and unique role played by AIA and other UK-based professional bodies.

Announced in the UK Government’s 2019 Green Finance Strategy, the Green Finance Education Charter (GFEC) is a world first. The Charter is designed to build the capacity and capability of the green and sustainable finance sector in the UK and internationally.

Today’s Green Finance Strategy outlines the UK’s plan to reach net zero greenhouse gas emissions by 2050. The strategy mainstreams climate and environmental factors as a financial imperative, with an emphasis on mobilising private finance for clean and resilient growth and cementing UK leadership in green finance. 

However, as the Sustainable Finance Education Charter reveals in its new report on the UK’s Environmental Social and Governance (ESG) skills set in the financial services sector, UK employers, educators and the government need to do more to secure the UK’s future as a global sustainable finance centre, and to deliver the commitments made by financial services firms.

Professional bodies are already playing their part as demonstrated in the Sustainable Finance Education Charter 2^nd Progress Report. Signatories are incorporating ESG into initial and continuing professional development programmes.

Four key findings of the revised Green Finance;

• The majority of respondents do not consider their organisations to be highly prepared for future requirements in green and sustainable finance, which is a cause for concern given the UK’s net zero ambitions and the sustainability commitments and strategies of many financial services employers.
• The majority of respondents felt their organisation was not targeting training budgets towards training employees in green and sustainable finance to support their organisation’s sustainability strategy.
• The green and sustainable finance skills gap is wider than the knowledge gap.
• Capacity and capability-building are a higher priority in other countries. The UK may fall behind if this isn’t addressed by employers, professional bodies, educators and the UK Government.

AIA Director of Operations, David Potts, said “As a professional body, AIA is committed to developing the capability and capacity of the banking, finance and professional services sectors to mainstream green and sustainable finance. We are making great strides to do this by placing sustainability at the heart of our operations and working with our members to deliver sustainable long-term growth.

"AIA is actively working with industry regulators to demonstrate how our operations are sustainable, whilst promoting sustainability through education and learning to our global membership. We are committed to the continual review of our processes, procedures, and strategy in line with ESG standards in 2023 and beyond.”

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"As a professional body, AIA are committed to developing the capability and capacity of the banking, finance and professional services sectors to mainstream green and sustainable finance."
David Potts, AIA Director of Operations