Staying on top as a pre-eminent global financial centre requires constant reinvention and the City of London has been doing it for hundreds of years. Brexit is the latest catalyst, factor in climate change and you have a new cause célèbre. Chancellor Rishi Sunak and the Treasury think they have the answer and want the UK to reinvent itself as a world leader in green finance.
But is the City up to the job? The Global Green Finance Index is a good indicator. It measures depth and quality. Zurich and Amsterdam top the charts, followed by the UK. “If these types of reports are anything to go by, then London may face an uphill struggle in years to come,” says Emily Kreps, global director of capital markets at CDP.
Don’t write London off in the global grand prix for leadership in sustainable finance. Look beneath the bonnet and the engine is increasingly green. “The growth in sustainable investing that we’ve seen this year highlights the resilience of the City of London as a sustainable investment hub. This is at a time when COVID-19 has disrupted the global economy and financial markets,” says David Schwimmer, chief executive of the London Stock Exchange Group.