financialnigeria.com – 24/09/2025
Our journey in the field of sustainable finance began in 2009 – the year that will be remembered in history for one of the greatest financial crises of all times and massive loss of trust in the financial industry. As the effects of the global crisis were still unfolding, the call for a safe, fair, stable, and equitable financial system became louder.
That call is still as valid today as it was more than 16 years ago. In response to it, European Organisation for Sustainable Development (EOSD) partners with stakeholders with steadfast commitment to a focus shift, from isolated solutions, or projects, to systemic change. This shift is a prerequisite for creating a truly resilient financial industry and the one that can deliver enduring prosperity to all and ensure environmental and climate protection.
Therefore, striving for a systemic change has been the cornerstone of all EOSD’s initiatives. From sensitising wider stakeholders about sustainability more than a decade and a half ago, when it was more or less exotic, to becoming today a solid partner for real impact, systemic change continues to be at the heart of EOSD’s work.
Accordingly, the Global Sustainable Finance Conference (GSFC), which was first held in 2011, is a forum for state-of-the-art and game-changing solutions rather than for maintaining or even amplifying status-quo – instead of challenging it.
The conference, which is one of the oldest platforms for sustainable finance globally (if not the oldest), offers inspirations through exposure to out-of-the-box approaches and highly innovative solutions.
Together with our partners, the host city of Karlsruhe and all the three associations representing institutions from about 150 countries, the Association of African Development Finance Institutions (AADFI), Association of Development Financing Institutions in Asia and the Pacific (ADFIAP), and the Association of National Development Finance Institutions in Member Countries of the Islamic Development Bank (IDB), we have walked this exciting, yet challenging path. It demonstrates our collective resolve to continuously reinvigorate the field of banking, finance and investments.
To this end, the GSFC provides a space for the leadership of financial institutions and their key stakeholders to come together for overcoming the challenges that hinder them from benefiting from true sustainability. It highlights how sustainability (albeit genuine sustainability) builds institutional resilience, which is required to navigate increasingly uncertain times.
The conference is about transforming mindsets so that sustainability becomes what, at its best, it must be: a profit enabler rather than a cost centre or an add-on.
As evident from the overall outcome of greening initiatives by the financial industry and by and large of the corporate world, voluntary undertakings, such as corporate social responsibility, have their limits. These are not linked with the core functions of the financial institutions, just as they are not part of the businesses of other non-bank corporations striving to create an impact. In fact, the greening initiatives or social responsibility and environmental stewardship are – generally speaking – delinked from what banks do, and corporate sector does, for generating revenues and profits. Therefore, the benefits are very short-lived (if any) and there is no lasting positive impact on the balance sheets nor on the society and environment.
This leads to another problem: in the absence of a business case, the interest of the Board and executive management of the financial institutions starts to diminish and with the passage of time, only symbolic sustainability survives. This is to say that the social and environmental narratives and actions are without any meaningful benefit to the institutions and of no lasting value for the stakeholders.
Most importantly, the fragmented and uncoordinated efforts for sustainability take the focus away from systemic changes needed to boost financial sector stability, make incumbent players fit for a digital economy, and enhance innovation capacity to compete in the world where non-banking players are fast taking over the business of banking and finance. Such efforts do not lead to addressing the systemic change needed in the financial industry and making it a part of a solution to social, economic, and environmental challenges.
The GSFC stays focused on addressing systemic issues and highlights a big-picture perspective.
It addresses the challenge of embracing sustainability that makes the financial institutions strong, profitable, and resilient, making them to become recognised players in developing their economies in a sustainable manner.
The conference is designed to be a forum for state-of-the-art and practical solutions, rather than for general information and presentations. It continuously attempts to distance itself from discussions on services, approaches, or projects that maintain status-quo, use sustainability as an add-on or nice-to-have, and are based on isolated projects or efforts. The conference strives to stay focused on creating sustainability-driven financial institutions, so that they make profits through delivering actual positive impact on the ground and shaping the destiny of their nations.
From its humble beginning over 15 years ago to a forum for cutting-edge initiatives today, the GSFC has continued to evolve in terms of goals, content, and audience.
The goals of the conference have been continuously re-evaluated, refined, and more often than not completely redefined, keeping it highly responsive to the constantly shifting environment in which financial institutions operate.
Each year has been a challenging one, and the content of the conference allows the audience to dive deep into what is shaping the world, enabling them to better navigate the social and economic changes, identify obstacles, and examine how to address prevailing challenges.
The content is also curated to help the leadership of financial institutions in building institutional resilience. This is of particular importance as the world enters a new phase of uncertainty – as a matter of fact, uncharted territories – where established global norms are being challenged, power dynamics are shifting, and predictability has reached its limits.
In addition, GSFC discussions include the topics of emerging technologies and disruptive business models and how they are influencing societal and customer behaviours. They offer an opportunity to examine what financial institutions can do to be part of driving technological advancements rather being passive observers and staying behind their competitors, who are increasingly from outside the traditional financial industry.
As Big Tech successfully takes over the business of payment transactions and is technically in a position to disrupt almost all areas of banking and finance, the GSFC sets its conference agenda accordingly, offering a platform for deliberating on novel ideas and solutions.
Over the years, the audience profile of the conference has continued to evolve, too. From being an open forum and more or less “no questions asked to attend”, the GSFC today is an invitation-only and closed-door event. The potential delegates are required to send their expressions of interest as the conference aims to bring together futuristic leaders and passionate professionals who are ready to position their institutions as leaders in financing the future today.
The conference strives to constantly renew the industry of banking and finance and break the ground for innovative approaches for creating a new economy. It envisages that the participating delegates are determined to making sustainability their business, distancing their institutions from green- or social-washing, and are ready to lead the needed change from the front.
But let there be no doubt: the transformation from nice-to-have sustainability to sustainability as a business model is indeed challenging and requires visionary and committed leadership. Nevertheless, it is the only right way forward, and it is also indispensable for futureproofing the profits of financial institutions and the economies they serve.
I warmly invite you to the conference and be part of breaking new grounds!
Thank you.
Arshad Rab, CEO, European Organisation for Sustainable Development, and Chairman, International Council of Sustainability Standards for Value-Driven Financial Institutions.
Source:financialnigeria.com