Regulatory Frameworks and Policy Developments for Sustainable Finance and Insurance

William Gaviyau () and Athenia Bongani Sibindi ()
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William Gaviyau: University of South Africa
Athenia Bongani Sibindi: University of South Africa

A chapter in Sustainable Finance and Insurance in Africa, 2025, pp 155-181 from Springer

Abstract: Abstract This chapter explores the dynamic interplay between sustainable finance and the broader financial services sector within the framework of evolving regulatory landscapes and policy advancements. As financial institutions increasingly grapple with the imperative to address climate risks and promote social equity, the chapter highlights how regulatory bodies are responding by enacting policies that foster sustainable underwriting, investment, and risk management practices across the sector. The discussion underscores the vital role of financial institutions, including insurers, banks, and asset managers, in driving sustainability initiatives. Given their unique position, these entities have the capacity to influence behaviour through sustainable investment portfolios and comprehensive risk assessments. The chapter delves into the integration of environmental, social, and governance (ESG) criteria into operational practices, aligning these activities with global sustainability objectives while enhancing resilience to climate-related risks. Through illustrative case studies, the chapter showcases successful initiatives where financial products, such as climate risk insurance, green bonds, and social impact investments, have been tailored to support sustainable development. Additionally, it addresses the regulatory challenges and opportunities financial services face in adopting sustainable practices, emphasizing the need for transparency in reporting and the establishment of standardized metrics for evaluating sustainability performance. By weaving the connections between sustainable finance and the financial services sector, the chapter posits that a cohesive regulatory approach can catalyse innovation, facilitate sustainable investment, and ultimately contribute to a more resilient global economy. It highlights the significance of collaboration among all stakeholders—including regulators, financial institutions, and investors—in fostering an environment conducive to sustainable finance, paving the way towards a more sustainable future.

Keywords: Sustainable finance; Financial services sector; Regulatory frameworks; Environmental social governance (ESG); Climate risk; Sustainable investments; Risk management; Policy development; Financial resilience (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:aaechp:978-3-031-86516-9_9

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DOI: 10.1007/978-3-031-86516-9_9

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