German-Greek Sustainability Forum: The “triple dividend”, business sustainability and growth prospects

The integration of sustainability into the financial system can unlock significant growth prospects and create competitive advantages, which are reflected in the concept of the “triple dividend”, i.e. protection from extreme weather events, support for the economy and employment and consequently social cohesion, Yannis Stournaras, Governor of the Bank of Greece, underlined at the first German-Greek Sustainability Forum, entitled “NEW World – NEW Sustainable Policy.”

Analyzing the concept of the “triple dividend”, he referred to the reduction of future losses, by limiting the effects of disasters associated with extreme weather events, the protection of life and infrastructure. Second, he pointed out the strengthening of economic activity, by creating jobs and promoting innovation, in sectors such as construction and agriculture. Third, he mentioned the social and environmental benefits that investments bring, such as, among others, the enhancement of biodiversity, the improvement of public health and the strengthening of social cohesion, as societies become more resilient.

To achieve the above, Stournaras set the following conditions:

• The utilization of a broader range of financial mechanisms, with innovative financial tools and derivatives that will help manage risks and offer hedging opportunities to protect investments.
• The creation of a favorable environment for private investments, through the development of a regulatory framework, the provision of incentives and the assurance of transparency in the use of resources.
• The partnership between the public and private sectors can also play a decisive role in the utilization of private capital and know-how for adaptation projects.

Therefore, as he said, an integrated approach to financing is required, combining public and private resources, traditional and innovative financial tools, as well as a supportive regulatory framework.