Imagine a world where finance fuels sustainability rather than just profits. That's the vision behind the G20 Sustainable Finance Working Group (SFWG). In 2024, led by the Brazilian Presidency, the working group tackled some of the most pressing challenges at the intersection of finance and sustainability. Here’s what you need to know. 

The G20 is a group of major economies working together on global economic challenges. It is a global forum in which top regulatory authorities and thought leaders discuss a careful selection of priorities put forth by that year’s Presidency. Within this collective, the SFWG focuses on how financial systems can support help combat climate change, reduce poverty, and foster inclusion. 

1. Transition plans for a greener future
   Transitioning to greener industries is complex and requires efforts from all stakeholders at once. The SFWG made strides by putting forth a set of 11 recommendations for governments, international organizations, and other stakeholders, including a set of seven transition planning principles for companies and financial institutions. These principles support the development of transition plans that are realistic, ambitious and fair, as well as aligned with global and national climate goals such as the Paris Agreement and Nationally Determined Contributions. Social inclusion and just transition was a major focus of the work.
2. Nature-based Solutions (NbS)
   From restoring forests to conserving oceans, nature-based solutions offer a powerful way to mitigate and adapt to climate change. The SFWG looked at innovative financing methods for these initiatives, focusing on four key areas: conservation, bioeconomy, oceans and water, and agroforestry. Local communities were a big focus, with recommendations to involve them at every step, ensuring these projects deliver real benefits for both the people and the planet.
3. Sustainability disclosures
   Comparability of sustainability efforts, environmental impacts and social impacts is critical to accurately assess companies' contributions to sustainability goals. Without consistent and comparable data, it's difficult to track progress, identify relevant investments, or ensure accountability. However, not all firms are equally capable of disclosing this information.
   To ensure that small and medium enterprises are not left behind as the market evolves, the SFWG suggested addressing resource scarcity via the promotion of capacity building, technical assistance and peer learning activities. It also encouraged creation or adoption of digital solutions such as a shared database, to be potentially used instead of annual reporting. Similarly, proxy data to be used instead of individually collected data.
   Crucially, the SFWG also recommended that the relevant authorities phase in regulations gradually, so that firms can prepare better for them. These actions would allow for quality data to be shared without overburdening SMEs while guaranteeing the goal of sustainability data comparability at the global level without marginalizing the most disadvantaged firms.
4. Streamlining vertical funds
   Vertical funds are global initiatives like the Green Climate Fund (GCF), the Global Environmental Facility (GEF), the Climate Investment Funds (CIFs), and the Adaptation Fund (AF) that help finance climate projects. In 2024, the SFWG worked on making such funds more effective. An independent expert group submitted recommendations to the SFWG for the improvement of the vertical funds’ operations, focusing largely on streamlining certain processes not only internally but also across the four funds, including the accreditation process and the project submission requirements. The work done under the Brazilian Presidency continues under the South African one in 2025.

Want to know more? Read the full 2024 G20 Sustainable Finance Report.

You might wonder, "How does this impact me?" 

Over the course of the year, top authorities of the world's largest economies engaged in extensive, robust discussions. The resulting SFWG recommendations reflect global leaders' commitment to work together to renew financial systems. Whether it’s funding renewable energy projects, protecting biodiversity, or ensuring companies are held accountable for their environmental impact, these efforts are creating a roadmap for a more sustainable world.

A stronger, greener economy means a healthier planet, better jobs, and an inclusive society, benefiting you and future generations.

This year, South Africa has taken the helm of the G20, continuing the focus on sustainable transitions and climate adaptation. The SFWG’s 2024 outcomes will serve as a foundation for further progress, with new discussions on scaling sustainable finance, and a focus on adaptation and carbon markets.

If you want to keep up with the work of G20 SFWG under the South Africa Presidency, please visit g20sfwg.org

This is a critical time to build together a financial system that works for the planet—and for all of us.

2024 has been a momentous year for the G20’s Sustainable Finance Working Group. From credible transition plans to empowering nature-based solutions, the outcomes reflect a global commitment to addressing climate change and inequality. With the momentum built this year and continued support of organizations like the UNDP, the path toward a sustainable financial future looks promising.

Whether you're a policy enthusiast, a budding environmentalist, someone curious about how systemic change in the financial sector may be operationalized and negotiated, or someone who wants a better future, you can keep abreast of the G20 Sustainable Finance Working Group and other G20 sustainable finance efforts at g20sfwg.org