The Sustainable Finance Observatory (SFO) publishes its 2024 Annual Report — the first since the strategic merger of two leading think tanks building on more than a decade of commitment to advance the sustainable finance agenda.
Read the full 2024 Annual Report A New International Actor Bridging the Climate Finance Gap – 2024: A year of strategic consolidation
Created in 2024 from the merger between 2° Investing Initiative and the Observatoire de la finance durable, the Sustainable Finance Observatory is an independent think tank specialized in unlocking private finance for a sustainable transition. Private capital accounts for 70 to 90% of the financing requirements to meet the objectives of the Paris Agreement and the Sustainable Development Goals.
In a landscape where many think tanks focus primarily on advocacy, SFO stands out by making technical and methodological expertise, as well as financial engineering its core strength. Its multidisciplinary team brings together former bankers, economists, legal experts, data analysts and sustainable finance specialists, supported by a Scientific & Expert Committee of over 50 senior academics and practitioners. This unique combination allows SFO to act as a bridge between disclosure frameworks, investment strategies, and real-world finance.
A Mission Structured Around Three Pillars:
The SFO mission is structured around three complementary pillars:
- Transparency: to monitor and analyse sustainable finance regulations and practices (net-zero alignment, ESG).
- Impact: to assess the tangible effects of financial products on the ecological and social transition in the real economy (in particular related to retail investment).
- Bankability: to design practical financial models and instruments that make sustainable projects investable at scale through financial engineering.
Preview of 2024 Highlights: Flagship Projects Across our Three Areas of Intervention
In 2024, SFO oversaw a portfolio of 11 active projects, secured five new contracts, and submitted 14 proposals across Europe and Africa. These activities illustrate how its three strategic pillars (Transparency, Impact, and Bankability) come together to turn financial ambition into concrete investment flows.
Below are a few flagship initiatives featured in the Annual Report:
Transparency:
Net-Zero Donut®: A comprehensive framework covering 60+ financial institutions and 220+ indicators, providing a structured view of how institutions align with net-zero targets — and where gaps remain.
The Climate Transparency Hub: A collection and analyse of the “Article 29 LEC” reports of French investors describing their sustainability practices (national extension of SFDR), covering more than 800 asset managers and asset owners.
Impact:
MyFairMoney: A free, independent, non-profit online platform helping retail investors to take sustainability into account and invest in line with their values, including an updated database and analysis of 15,000 European funds.
Impact Potential Assessment Framework (IPAF): A science-based framework to assess the impact potential of financial products, with a focus on investor contribution.
Bankable Sustainable Solutions:
FiRéno+: A Multistakeholder Platform on Financing Energy-Efficient Building Renovation in France (150 participants). The project fostered a solution-oriented dialogue and led to the development of turnkey financing solutions. In coordination with the 6 main commercial banks in France, these solutions are expected to unlock €6 billion in additional private investment annually.
Rise-In: A pioneering project on climate adaptation that bridges the gap between environmental resilience and financial viability. Focusing on nature-based solutions (NBS) for flood risk management, the project introduces the concept of Bankability Readiness Level, a novel metric to assess, enhance and unlock investment potential of climate-resilient solutions.
These projects reflect SFO’s unique ability to combine methodological expertise, and financial innovation, bridging the gap between sustainable finance frameworks and real-world capital flows.
Expanding International Reach
Looking ahead, SFO aims to expand its international reach and visibility, particularly in developing and emerging countries where financing gaps remain most acute.
The 2024 Annual Report illustrates how SFO combines transparency, impact, and bankability to develop practical solutions for mobilising private capital in a challenging global context.
