As the global focus on sustainability intensifies, a new report from the United Nations Global Compact Network USA highlights the pivotal role of social sustainability in shaping financial strategies and investment decisions. This article delves into how leading organizations, including the International WELL Building Institute (IWBI), are integrating people-first approaches to drive long-term value and resilience.

Investing in People: The Future of Sustainable Finance

Understanding the Current Landscape of Sustainable Finance

The field of sustainable finance has experienced rapid growth, yet social factors remain underrepresented, accounting for only 23% of sustainability-linked financing since 2017. This imbalance underscores the need for a more holistic approach that prioritizes human health, safety, and well-being. IWBI’s efforts exemplify this shift by demonstrating how verified social sustainability strategies can enhance business performance and advance the UN's Sustainable Development Goals (SDGs).Sustainability-linked loans, bonds, and other financial instruments now incorporate frameworks like the WELL Building Standard (WELL) to improve workforce well-being, strengthen impact measurement, and boost organizational resilience. Organizations and investors are increasingly leveraging third-party verified sustainability frameworks to achieve these goals. Research indicates that investments in healthier workplaces, fair labor practices, and inclusive design strategies can yield significant financial returns by enhancing productivity, reducing absenteeism, and improving employee retention.

Key Insights on the Evolution of Sustainable Finance

The future of sustainable finance hinges on leadership. Companies must choose between leading or following in an era where over 40 sustainability taxonomies exist worldwide. Proactive engagement with sustainability regulation and finance is crucial for long-term business resilience. Despite evolving labels and terminology, the core principles of building a responsible, resilient future remain unchanged. True sustainability encompasses both environmental and social resilience. Social sustainability strategies, such as those outlined in the WELL Standard, are increasingly integrated into sustainable finance frameworks and corporate reporting globally. This integration demonstrates the financial value of investing in people, reinforcing the importance of social impact metrics alongside environmental considerations.

IWBI's Role in Shaping Sustainable Finance

As a global leader in sustainability standards, IWBI continues to influence international conversations on sustainable finance, responsible investment, and corporate reporting. In 2024, IWBI launched the Sustainable Finance Task Force, uniting leading organizations to accelerate capital flow and policy toward social sustainability. Building on this momentum, IWBI plans to publish a comprehensive special report on sustainable finance in 2025, featuring case studies from pioneering organizations worldwide. This resource aims to drive innovation and expand the adoption of holistic sustainability strategies in financing and investment activities across industries and markets. Additionally, IWBI will host its second Social Sustainability Summit in Amsterdam, exploring sustainable finance strategies, equitable transitions to a low-carbon economy, and innovative approaches to enhance well-being for people and the planet.

Adopting Holistic KPIs for Sustainable Finance

For organizations embarking on their sustainable finance journey, the key lies in adopting holistic Key Performance Indicators (KPIs). These should encompass both environmental and social metrics, such as employee health and well-being, community engagement, and end-user impact. Such factors are not only essential for a robust sustainable finance framework but also critical for long-term business success.By incorporating these KPIs, organizations can better align their corporate objectives with social and environmental impact, driving measurable business benefits. With WELL adoption spanning nearly 5.8 billion square feet across 136 countries, IWBI has demonstrated how organizations, financial markets, and regulatory frameworks can effectively integrate social impact metrics alongside environmental considerations.