Striking a balance between profit, people welfare, and ecosystem health in the transition towards a sustainable financial system

As the attainment of sustainability goals arises as a pivotal – and desirable – format in the development of financial markets the role of the State in favouring this process becomes multifaceted and complex to decipher. In order to promote a favourable environment for sustainable investments, public powers are required to act as policymakers (by establishing a clear regulatory framework), active players (e.g., by issuing sustainable debt) and supervisors (monitoring the respect of CSR rules by companies) at the same time; this, also considering that the introduction of sustainability-related policies is susceptible to greatly vary in its approach and meanings. Corporate welfare projects and improving also the organisational culture could improve the managerial decisions and allow workers to be involved in this needed revolution. People management strategies are also becoming fundamental to allow a sustainable organisation of working environments and adequately valorising workers. A similar discussion has been identified in relation to the need for greater transparency in business operations and practices. All these aspects call for a major coordination effort, both at EU and at Member States level to reach an alignment of public and private interests in sustainability while, at the same time, preserving the proper functioning and traditional role of financial markets. Consequently, the document explores the different strategies that could be implemented to – directly or indirectly – reconcile private actors’ traditional profit-seeking orientation with the promotion of wider interest related to global wellbeing.