Back to business, facing the climate reality

As we transition from the slower rhythm of summer holidays back into September's business pace, climate challenges don't take a summer break. Spain has faced record-breaking wildfires this summer, with nearly 400,000 hectares, and landscapes scarred across an area twice the size of metropolitan London. These extreme events are a reminder that the sustainable transition is not only an economic opportunity but an urgent necessity.

At the same time, there are pushes for not losing opportunities. UN Secretary-General António Guterres recently warned that the world has "passed the point of no return" on the shift to renewables. In his July address, “A Moment of Opportunity: Supercharging the Clean Energy Age,” he argued that the US and other countries clinging to fossil fuel are missing the century’s greatest economic opportunity, citing “clear market distortions” in favour of fossil fuels. He mentioned that over 90% of new renewables worldwide now produce electricity for less than the cheapest new fossil fuel alternative – making the economic case for transition more plausible.

The path ahead is not without its complexities, yet there is much to be encouraged by. The ingenuity, resilience and commitment of businesses, communities and innovators across Europe show that the sustainability transition is not only possible but already underway. What remains is to harness this momentum, share best practices, and turn opportunity into lasting impact.

Europe’s different paths to green finance

A recent study by Agnieszka (Aga) Smoleńska, PhD on European Capitalisms in Sustainability Transition: The Case of Green Bonds demonstrates that even when countries use standardised instruments like green bonds, they adapt them in dramatically different ways – a divergence that has significant implications for how effectively Europe can mobilise capital toward its climate goals.

By comparing the Netherlands, Sweden, Spain, and Poland, the research highlights that local context matters. Nordic countries tend to treat green finance as a compliance risk, while Spain and Poland frame it as a profit opportunity. Legal frameworks differ too: Poland relies on binding sanctions, whereas Sweden and the Netherlands use reputational oversight.

These differences are more than technical details. Green bonds are already influencing market practices, with banks taking on the role of sustainability advisors and exchanges introducing dedicated segments. What this shows is that mobilising capital for the transition cannot follow a single model, and recognising these dynamics is increasingly important for policymakers, investors, and institutions.

ISFC News

• ISFC launched a brand new website! Explore resources, research, and insights on sustainable finance here: here
• And starting September 2025, the ISFC Podcast returns with a new series hosted by Hugh Wheelan . Stay tuned!

Latest insights & Reads

As usual, here’s a roundup of the latest news, articles, recommended reading, and reports shaping sustainable finance – and much more.

News

• Reuters: Australia's Fortescue secures yuan loan worth $2 billion for green energy plans
• ESGToday: 23 State Coalition Warns SBTi, Financial Firms Over Antitrust Risk from Net Zero Commitments
• ESGToday: Danske Bank Divests More than 85% of Fossil Fuel Companies Over Transition Plans
• ESGToday: Only 38% of Employees Believe Companies are Doing Enough on Climate Change, Sustainability: Deloitte Survey
• Nuveen Raises $1.3 Billion From Global Institutional Investors For Energy & Power Infrastructure Credit Strategy
• The Guardian: Chemical pollution a threat comparable to climate change, scientists warn
• RI: UK Pension Protection fund on decarbonising without a net zero target
• FT: Texas overplays its hand with new anti-ESG law
• UN Global Compact Launches New Tool to Help Companies Assess and Advance Non-discrimination and Equality in the Workplace
• FT: How a rural exodus stoked Europe’s deadly wildfires

Articles and recommended reading

Books

• An interesting read published last September, The Heat and the Fury by Peter Schwartzstein, explores how climate change is driving conflict and violence worldwide, from drought fuelled extremism to water wars.
• A book on DEI: Radical Inclusion by David Moinina Sengeh shares powerful stories and practical steps for creating more just, inclusive homes, workplaces, and communities.
• An important read, On Natural Capital by Partha Dasgupta, (author of The Economics of Biodiversity) argues that our economic models ignore nature’s true value and calls for a transformative approach that accounts for the environment as a critical economic asset.

Articles

• The Development Traps Paradox High performance and low scores - the puzzling absence of relationship between regional competitiveness indicators and growth: a paper by J.N. Ferrer and M.T. Schreiber published last year showing competitiveness scores don’t predict growth and urging a place-based approach to cohesion policy.
• When tracking corporate climate conduct, do we focus too much on emissions? This article by Ilmi Granoff argues we shouldn’t judge corporate climate performance by emissions alone, but also consider capital investments and long-term impact.
• 2025 Forecast: Big Changes for the EU Green Deal This article by Graham Freeman argues how 2025 EU political shifts are driving simplification of sustainability regulations, creating uncertainty for businesses on reporting and compliance.
• Jenny Bofinger-Schuster wrote an article presenting new IFRS Foundation guidance showing how companies using ISSB Standards can report anticipated financial effects of sustainability-related risks.
• A new working paper by Helen Chiappini, Laura Nieri and Stefano Pisera on Climate Risk and Bank Landing, including South Africa’s 2019 carbon tax, finding that such risks reduce lending.

 Reports and publications   

• GlobeScan, ERM, and Volans published a new report Sustainability at a Crossroads, showing experts believe current sustainability approaches are failing, calling for bold, future-fit strategies amid stalled progress, rising backlash, and declining confidence in governments, civil society, and global frameworks.

• The World Bank published a new report on Banking on Cities: Investing in Resilient and Low-Carbon Urbanization, estimating investments needed for urban development in low- and middle-income countries through 2050.

• OECD - OCDE published a new report with the African Development Bank, highlighting strategies to mobilise finance and build resilience, with a special focus on Africa’s vulnerabilities and opportunities.

• European Securities and Markets Authority (ESMA) published the Final Report on Prospectus Regulation, setting out new regulatory technical standards. The update expands the list of documents that can be incorporated by reference into prospectuses to include regulator-approved or filed documents under the Prospectus Directive, as well as pre-issuance disclosures for green and sustainability-linked bonds.
• The Institute for Manufacturing (IfM), University of Cambridge, published The Pulse of Sustainability, examining how organisations are prioritising and implementing sustainability initiatives while exploring future trends like regenerative manufacturing and resilient supply chains.
• ShareAction published Built to Last?, the first benchmark of real estate investment managers, revealing that many have yet to take basic climate action while urging asset owners to engage on just transition planning.

• The World Bank released a new report Unlivable: How Cities in Europe and Central Asia Can Survive-and Thrive-in a Hotter Future, which highlights the growing threat of extreme heat to cities, detailing rising health risks, economic losses, and infrastructure stress, while providing practical strategies.

Online community insights

• LinkedIn Post: Louie Woodall on $50M philanthropic fund to boost community-level climate resilience and its potential to catalyse further impact
• LinkedIn Post: Tessa Clarke on Shein's SBTI-approved “net-zero by 2050” target
• LinkedIn Post: Lucy Fitzgeorge-Parker on the Responsible Investor Global Asset Owner Series
• LinkedIn Article: Sustainability Is at a Crossroads: What Business Needs to Know - Chris Coulter on the the GlobalScan report.
• LinkedIn Post: Andreas Rasche on UN report finding UN reports aren't widely read.
• LinkedIn Post: Avantika Goswami shares highlights on the roundtable on Green Industrialisation and Trade
• LinkedIn Post: City of London Corporation on the consultation of the Transition Finance Council on new guidelines to define credible net-zero transition finance, open to stakeholder feedback until Sept 19, 2025.
• LinkedIn Post: Richard Baldwin on Trump's trade tariffs
• LinkedIn Post: Laura Capera Romero shares insights of her study on Net Zero Banking Alliance (NZBA) membership shapes banks’ cross-border lending

Videos & Podcasts

• Why creative people may make better sustainability professionals: this episode explores how creativity can enhance sustainability work, including problem-solving, innovation in supply chains.
• Outrage + Optimism: The Climate Podcast: You Are What You Eat: Soil, Seeds and Social Justice

Events

September

• 4-11 September 2025 | Milan, Italy: Euronext Sustainability Week
• 16 September 2025 | Brussels, Belgium: Sustainable Finance And Asset Management Conference 2025
• 21-28 September 2025 | New York Climate Week
• 30 September-2 October 2025 | Geneva, Switzerland: Building Bridges

October

• 7-8 October | Paris, France: OECD: Forum on Green Finance and Investment 2025
• 9-10 October | Prague, Czechia: Innovation Week
• 20-21 October 2025 | Budapest, Hungary: RICS: Built Environment European Summit 2025: Shaping the Future of the Built Environment
• 10-21 November 2025 | Belem, Brazil: COP30