In this episode of Financial Perspectives, Tanya Suba-Tang sits down with Rachel Gee, Manager of FS Climate Change and Sustainability Services at EY, to examine how sustainable investing has evolved from a values-driven concept into a core financial discipline.

Rachel outlines how climate risk is already being priced across markets—from insurance disruptions and real estate exposure to emerging nature-based frameworks and AI-driven energy demand. The conversation explores why carbon was only the starting point, how biodiversity and water risk are influencing capital allocation, and where investors are finding opportunity amid volatility.

Looking ahead, they discuss what’s next: less headline noise, deeper integration into core decision-making, increased investment in data and risk modeling, and a shift from “sustainability strategy” to simply strategy.

Key Takeaways:

• Sustainability has become a central theme in finance, moving from niche to necessity.
• Climate risk is reshaping investment decision-making, particularly in insurance and real estate markets.
• Millennials and Gen Z are driving sustainable investing trends, integrating values into financial portfolios.
• The evolution of sustainability in finance is shifting from externality to core business strategy for firms.
• Nature-related risks are gaining attention, with frameworks like TNFD becoming essential in financial assessments.
• The future of sustainability in finance will see deeper integration into business as usual practices, beyond just headlines.