The United Nations Environment Programme’s Finance Initiative (UNEP FI) will celebrate its 20th anniversary in 2012.  In recognition of that milestone, this article examines the partners and partnership between the United Nations and the financial services sector worldwide, which have worked on the development of sustainable finance.  UNEP FI brings together the convening power of the UN and the influence of asset managers within the investment supply chain to mainstream environmental, social, and governance values in investments.

UNEP aims to steer financial institutions into voluntarily identifying, promoting, and realizing sustainable practices at all levels of financial institution operations with the ultimate aim of mainstreaming sustainable finance. On the other hand, financial institutions are motivated by corporate social responsibility and potential business opportunities in sustainable finance and are prepared to partner with UNEP in the hope of gaining efficiencies and effectiveness that are difficult to attain under private initiatives. A case study on the development of the Principles for Responsible Investment is presented to illustrate these points. Going forward, it is anticipated that UNEP FI will play a greater role in sustainable development discussions and implementation, reflecting the growing need for financial expertise in policy and regulatory discussions that will expand the UN-business partnership from a host-guest relationship to a more equal partnership.