· 3 min read
illuminem summarises for you the essential news of the day. Read the full piece in The Business Standard or enjoy below:
🗞️ Driving the news: Millennials and Gen Z are driving a transformational shift in sustainable finance in Bangladesh and globally, aligning investment decisions with climate resilience and social impact
• With over 70% of younger investors expressing interest in ESG-aligned assets, their influence is reshaping financial products, regulatory policies, and institutional priorities — ushering in a new era of value-driven finance in a country acutely vulnerable to climate change
🔭 The context: Bangladesh has one of the youngest populations in Asia (median age ~27), and its exposure to sea-level rise, floods, and extreme weather gives sustainability a uniquely personal relevance
• While traditional investment patterns centred on real estate and savings certificates, digital platforms like bKash and Nagad are opening the door to green investing
• Since 2011, Bangladesh Bank has introduced green banking guidelines and later formalised sustainable finance policies—though adoption remains uneven
• The Dhaka Stock Exchange has also issued ESG disclosure guidelines, setting the foundation for broader change
🌍 Why it matters for the planet: In Bangladesh, climate threats are not abstract — they are daily risks
• As Millennials and Gen Z align their financial decisions with environmental and social outcomes, they are mobilising capital towards renewable energy, waste management, and green infrastructure
• This shift enhances climate adaptation efforts, builds investor trust, and sends market signals that could scale sustainable finance nationally
• The demand for authenticity also discourages greenwashing, ensuring that products offer real impact and measurable progress
⏭️ What's next: Bangladesh’s regulators must now focus on standardising definitions, improving transparency, and expanding investor education to close the knowledge gap
• Digital platforms will be key to engaging younger, tech-savvy investors
• The upcoming implementation of Bangladesh’s green bond framework — first announced in 2021 — will be pivotal in unlocking new sources of sustainable capital
• The long-term opportunity is clear: as incomes rise and awareness deepens, Millennials and Gen Z are set to become the principal drivers of sustainable finance in the country
💬 One quote: “Young investors are not waiting for sustainability to be handed down from regulators or institutions. They are asking for it now — in their language, on their devices, and in ways that connect personal finance to the broader goals of resilience and development”
📈 One stat: Between 2019 and 2023, global sustainable investment assets under management surpassed $35 trillion, driven largely by Millennials and Gen Z investors
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