In sustainable finance, it is increasingly clear that capital alone cannot solve systemic environmental challenges. The success of an investment is not only measured by financial returns or hectares of forest protected but by the strength of the ecosystem that sustains it.
For many investors, this means looking beyond the project or portfolio level to consider the wider enabling environment: Are the local regulations providing an adequate scenario for companies implementing No Deforestation, No Peat, No Exploitation (NDPE) policies? Are government policies aligned with climate resilience? Do local financial institutions support climate-smart lending? Are there incentives for smallholders to adopt sustainable practices? When these conditions align, investments are not only de-risked, but they are also amplified.
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