'The Davos of ethical finance': How Edinburgh can reshape the corporate world
With some £25 trillion under management in responsible investment strategies, ethical finance is no longer a niche concept and Edinburgh is playing a key role in making it even bigger
Edinburgh’s world-famous arts festivals may be over for another year, but the capital is about to host a gathering that could shape the future of our economy and our planet. As we were reminded by this year’s hit Fringe satire Make It Happen, charting the rise and fall of Fred Goodwin and the Royal Bank of Scotland’s woes, choices in finance can have consequences that ripple through society.
More than 2,500 investors, policymakers and innovators will come together for the first Edinburgh Finance Festival to tackle the big questions about how money can create a fairer, greener world. For a city with centuries of financial heritage, it is a chance to show that Edinburgh is not only a global cultural capital, but also a centre for responsible, forward-looking finance.
The event positions the city as the Davos of ethical finance. Unlike exclusive gatherings of other financial capitals, Edinburgh offers space to reflect, debate and explore solutions. Here history meets innovation, and ideas can take shape without the constant noise of trading floors.
An age of uncertainty
At the Global Ethical Finance Initiative (GEFI), we believe that when we come together to share insights and commit to action, we can genuinely change the world. For a decade, we have convened professionals and experts to shape a better finance system through the Ethical Finance Global summit.
This year it has expanded into a two-week programme spanning finance, technology and energy to focus on climate change, social justice and economic uncertainty. Leaders from around the world will share experiences, offering perspectives that make discussions richer and more practical.
Representing Scotland will be Deputy First Minister Kate Forbes and former First Minister Humza Yousaf, who will be talking about the lessons he learned trying to drive through green policies while in office.
We are living through a time of uncertainty, with geopolitical tensions rising and markets in flux. Finance has a unique role in building stability, enabling solutions, and shaping a fairer, greener future. Decisions made today about where money is invested will affect not just communities and businesses, but the planet itself.
Ethical finance is no longer a niche concept. It has moved firmly into the mainstream, with more than £25 trillion now under management in responsible investment strategies.
‘Tragedy of the horizon’
But this progress comes with challenges. Some investors are retreating under political and regulatory pressures, while others recalibrate to meet evolving standards. The new festival will explore how finance can continue to advance sustainability without getting lost in compliance exercises or greenwashing.
Around the world, progress towards net zero has slowed, and political polarisation makes it harder for governments to deliver long-term policy stability. Financial markets remain scarred by short-termism.
Yet the challenge of climate change, inequality and sustainable growth cannot be solved with quick fixes. As former Bank of England boss and now Canadian Prime Minister Mark Carney memorably put it, climate change is the “tragedy of the horizon”. It will shape the lives of our children and grandchildren more profoundly than our own.
Practical progress is already visible. The surge in electric vehicles on UK roads and the growth of offshore wind projects demonstrate that major sectors can be replumbed to meet climate goals, with clear business, environmental and societal benefits. These examples show that sustainable finance is not just a concept but a driver of real-world change.
The ghost of Adam Smith
That is why Edinburgh matters. Scotland has a unique financial heritage, from the world’s first savings bank to the first pension funds. Scots such as RJ Fleming helped build some of the most prestigious merchant banks in London and Asia.
Our capital city has for centuries been a global centre for money and ideas. It is the home of Adam Smith, whose Wealth of Nations shaped modern capitalism, and whose 250th anniversary we mark next year. And like Smith’s ghost in Make It Happen, the Edinburgh Finance Festival invites reflection, challenging delegates to think boldly about the future of finance.
Practical examples matter. In recent years, the Ethical Finance Summit has helped launch projects like the SDG Fund, a £100 million initiative supporting the UN’s sustainable development goals. Discussions here have influenced business deals and policy approaches, showing that frank, open debate can have a real-world impact. It is also expected to bring a £1 million boost to the city’s economy, highlighting that ethical finance can deliver tangible local benefits.
The event also underscores the links between finance, technology and sustainability. Advances in FinTech are making financial systems more transparent and giving people greater choice in how their money is invested. Ethical finance now embraces social responsibility alongside environmental concerns, ensuring fairness across communities and societies.
Our choices, our children
Following a summer of arts and culture, the new festival builds on Edinburgh’s reputation for creativity and inquiry. The city provides a space for networking and fresh thinking, offering delegates a chance to step back from everyday pressures and consider long-term solutions.
For policymakers, business leaders and the public alike, the message is clear: finance is not an abstract system operating somewhere far away. It is our money, our pensions, our deposits, and the choices made in banking and investment affect our communities, our children and the world we leave behind.
By blending the city’s rich heritage with a commitment to sustainability, social justice and economic responsibility, the Edinburgh Finance Festival demonstrates that finance can be both a force for good and a driver of meaningful change. It reminds us that the decisions made today have consequences far beyond the balance sheets, shaping not only markets but the planet for generations to come.
Omar Shaikh is managing director of the Global Ethical Finance Initiative
For more information on the Edinburgh Finance Festival click here
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