Interview with Kali Taylor

Kali, SFG was founded 16 years ago – how have you seen sustainable finance changing since then?

I asked our founders that very question for our 15th anniversary last year and there were two responses that stood out to me. First, that sustainable finance has gone from a niche to the mainstream. When SFG was first founded, most of the industry believed that sustainability was not “the business” of the finance industry, but today there is near-universal recognition that sustainability considerations are fundamental to sound risk management and long-term returns. There is still work to do on moving from a risk-centric approach to one that considers impacts as well, but this concept has evolved significantly as well. Another development our founders noted was a better understanding of the heterogeneity of the sector. Different intentions and approaches to sustainable investment exist and are a function of different management styles, client expectations and regulatory requirements. A plethora of approaches can have a place and legitimacy in the sustainable finance landscape.

What sets SFG apart from other organizations promoting sustainable finance?

There are two main things that make SFG different from other organizations - our membership structure and our local focus. SFG is governed by and made up of individual sustainable finance professionals. People participate as themselves and we design all our programming to give industry professionals the tools they need to advance sustainable finance within their own realms of influence. This is complementary to the work other associations do with the institutions themselves. In addition, we are firmly rooted in Geneva. Geneva has a unique ecosystem of financial players and sustainability-driven actors that we serve and unite to develop innovative solutions that can move capital both locally and globally to achieve sustainability outcomes.

What do you see as Romandie’s key competences in Sustainable Finance?

The Romandie is known for wealth management and investing with impact. There are 80+ banks in Geneva who serve institutional clients. This represents huge potential for sustainability, as we know it is ultimately asset owners who make decisions about where their capital is deployed. In addition, the Romandie has been a forerunner in impact investing for decades. This takes several forms, Geneva is the birthplace of many cutting-edge impact investment houses and has pioneered unique financial instruments, particularly around microfinance and financial inclusion. But it’s not only that, the region is also home to mainstream asset managers who are building unique thematic products and managing billions in environmental and social themes.

What motivated you to work in sustainable finance, and what keeps you passionate about this field?

I have worked on sustainability issues since I was 19 years old – first on sustainable energy and energy transition with an NGO I co-founded and then on green economy and the SDGs with the United Nations. Working in these spaces, it became very clear to me that there are few levers as powerful as finance for making change. Where money goes, things happen. The potential for impact is huge and that is what keeps me excited about this work every day.

SFG has called attention to the need for better gender equality practices in the finance industry, can you explain that work and what you think is needed in Switzerland?

One of our priority impact themes is gender equality and it is a multifaceted challenge and opportunity for the finance industry globally and in Switzerland. I see three main areas where gender overlaps with finance:

• In the workforce – Having gender diversity in leadership and the workforce is shown to produce better results for a company, and it is a crucial issue for developing and maintaining a strong talent pool.
• In serving clients – Women are accumulating wealth at a compound annual growth rate of 5.7%. Understanding women’s unique needs can be a competitive advantage for financial institutions. Serving women also has additional ancillary benefits as they tend to be clients with more awareness of ESG factors.
• In capital allocation – Applying a gender lens to investments is a powerful risk mitigation tool (many studies show companies with diverse leadership are less likely to fail) and opens business opportunities (diverse companies outperform their less diverse peers, women are often the primary decisionmakers for household purchases, etc.)

Switzerland has a range of gender lens funds on the market, but we would like to see more wide-scale adoption across the industry as there is a long way to go.

SFG has launched an initiative on Peace Finance. Can you explain what this entails and highlight a key success you have had in gaining interest for this topic in Switzerland?

Our work on peace finance is predicated on the fact that peace is central to Geneva’s identity and history. Conflict is becoming more prevalent, and it is destabilizing markets. Businesses and investors are not “neutral” actors in these conflicts, their actions either contribute to peace or to furthering the conflict. Our work is focused on helping investors understand conflict risk in their portfolios and giving them the tools they need to mitigate these risks and contribute to peace and stability. 

You can learn more about our peace and gender work on our website where we have created Hubs for each theme.

November, 2024