The Role Of Finance In Addressing Sustainable Development

The Z/Yen Group today released a publication titled “The Role of Finance in Addressing Sustainable Development” as commissioned by the Financial Services Development Council (FSDC).

The global financial system is evolving from a passive allocator of capital to an active force shaping growth pathways that foster resilience and inclusion. Global financing for sustainable development rose by 22% to USD 5.2 trillion between 2015 and 2024.1 Despite this progress, a persistent funding gap remains in critical sectors such as clean energy, infrastructure, and social resilience, with developing countries alone requiring an additional USD 4 trillion annually to achieve the United Nations Sustainable Development Goals and other climate targets.2

The publication provides an overview of how instruments such as green bonds, sustainability-linked loans, impact investment funds, blended finance and others are redefining traditional notions of risk, value, and accountability. Advances in disclosure standards and digital measurement tools are further strengthening the credibility and transparency of sustainable finance worldwide.

A central theme of the report is the pivotal role of international financial centres as both governance anchors and innovation platforms for sustainable finance. The publication profiles Hong Kong as a case study, demonstrating how the city has systematically embedded sustainability into its financial architecture, regulatory frameworks, and market practice, while sustaining its competitiveness and credibility as a leading international hub.