First meeting of State – AMAF working group on “Monaco Sustainable Finance”

©Direction de la Communication/Stéphane Danna

Nearly two years ago, a working group was created to consider the future of the Monegasque banking and finance industry. The first issues addressed by members of the group related to innovations in digital finance. This led to the adoption by the National Council of Act No. 1.491 on security token offerings.

Today, a new joint working group made up of representatives from the Monaco Association for Financial Activities (AMAF) and the State met to consider the launch of a new initiative favoured by the Prince’s Government on “Monaco Sustainable Finance”.

Alongside Switzerland and Luxembourg, the Principality of Monaco is one of the leading European centres for private banking. Through his decades-long commitment to sustainable development, H.S.H. the Prince is an example for his country that both public and private banking and financial institutions are now bound to follow, not least because implementing sustainable development as part of the economy and finance is a major factor driving competitiveness on the international stage.

In a globalised economy, the success of both corporate and investment strategies is increasingly dependent on ESG (environmental, social and governance) or SRI (socially responsible investing) selection criteria. Incorporating these factors as part of analysis, financial investment and risk management is likely to improve yields, but also to reduce risks, especially systemic risks.

Bankers, fund managers and private managers have recognised, for themselves and for their clients – including family offices and institutional clients – the value of integrating a “sustainable” approach within their decision-making processes. They have all become aware of their share of the responsibility for tackling global challenges and implementing the changes that are critical if we are to combat global warming.

Considering sustainable development as part of management processes will therefore contribute to achieving financial goals, on the one hand, and the key targets set out in the Paris Agreement and/or the United Nations Sustainable Development Goals (SDGs), on the other.