The financial system we need: from momentum to transformation

This document presents the second edition of UNEP's flagship global report on aligning the financial system with sustainable development. It builds on the concept of a “quiet revolution” within finance, highlighting growing momentum across market leadership, national action, and international cooperation. The report evaluates how sustainable development goals, climate imperatives, and financial reforms have converged to reshape policies, regulations, and financial practices worldwide. It underscores the critical role of fintech, public finance, and common sustainability standards in accelerating systemic transformation. While acknowledging substantial progress—such as the rise of green bonds, sustainable stock exchanges, and central bank engagement—the report concludes that existing momentum remains insufficient to meet global sustainability challenges. It outlines five strategic steps: embedding sustainability into national financial strategies, harnessing technological innovation, leveraging public finance, raising awareness among stakeholders, and institutionalizing standards for sustainable finance.