On 2nd May 2024, the world’s leading Sustainable Finance Education Charter (SFEC) launched its third Annual Progress Report, highlighting the work of ICAEW and the Charter’s 12 other predominantly UK-based, global professional bodies throughout 2023. The Charter’s efforts aim to embed the principles and practice of sustainable finance into the education and training of finance and supporting professionals worldwide.

The 2023 Progress Report arrives at a time of increasing global interest in the important role of capacity building. This interest is driven by the need to mobilise the sustainable finance necessary to achieve global sustainability goals. The report highlights several notable achievements:

• Over 110,000 finance and supporting professionals received training in sustainable finance during the year.
• Curated sustainable finance content was viewed more than 600,000 times by finance professionals and others.
• 16 new sustainable finance qualifications, modules, and courses were launched in 2023.

Professional bodies provide learners with external verification of their learning. This crucial function helps mitigate the risk of “competence greenwashing”. It ensures that finance professionals develop the knowledge and skills they need, relevant to their roles. This empowers them to consider climate change and sustainability when making financial decisions.

Sarah Reay, ICAEW Climate Change Manager said: “As a member of the Sustainable Finance Education Charter, ICAEW acknowledges the pivotal role that accountants play in sustainable finance. Accountants, with their deep understanding of measurement, reporting and being providers of decision-useful information, are well positioned to influence financial decisions that have far-reaching environmental and social implications.

By equipping accountants and finance professionals with the knowledge and skills in sustainable finance, and by building their capacity to apply these in their work, we can catalyse a shift towards more sustainable economic systems that are socially just, nature positive and net zero.”

The Sustainable Finance Education Charter (SFEC)

Launched in June 2020, SFEC is a unique coalition of 13 professional bodies spanning the finance industry. The partnership also includes the UK’s Department for Energy Security and Net Zero (DESNZ) and the Green Finance Institute.

Finance professionals play critical roles in developing and embedding professional standards, norms, and cultures aligned with sustainability. They support their clients and customers in addressing sustainability risks and in planning and implementing credible and successful transition plans.

With the release of key sustainability standards in 2023, including those of the new International Standards Sustainability Board (ISSB) and the Taskforce for Nature related Financial Disclosures (TNFD), SFEC members have successfully integrated the principles and practice of green and sustainable finance into their professional qualifications and Continuing Professional Development (CPD) programmes.

Despite these significant strides, there is still much to do to fulfil the charter’s longer-term commitments in the UK and internationally. This report reaffirms those pledges to increase SFEC membership, extend the number of organisations supporting the Charter, and encourage other jurisdictions to use its pioneering approach as a template for capacity building worldwide.