4.6.8.2 Finance

Investments need to guide sectors along more sustainable and equitable pathways rather than fuel unsustainable business models, working conditions and use of resources – for example through the coupling of public incentives and improved working conditions (Jouffray et al., 2019). Divesting from companies that are seen to be complicit in transgressing planetary boundaries, such as oil majors and powerful cattle lobby groups in the Brazilian Amazon (Piotrowski, 2019) has the potential to reshape the business environment towards more equitable practices. Another area where investments could leverage PTPs is in the shift away from car dependency, particularly for those living in densely populated metropolitan areas, whose health and life expectancy would benefit from improved air quality and pedestrian safety (Rionfrancos et al., 2023). 4.3.2 on transport and mobility systems discusses efforts to avoid demand for material-intensive mobility and shift to more active modes of travel. Finally, finance has the opportunity to redistribute money to vulnerable regions and intervention spaces like mitigation, adaptation, loss and damage, and biodiversity (4.4.3). Currently there is highly uneven access to credit and capital to bring about more transformative change. Such reconfiguration of finance flows needs to be undertaken with full consideration of the impact that such investments would have, not just on financial returns, but also on social and environmental outcomes.