How does real change come about and, perhaps more importantly, how does it become entrenched behaviour?
We may not want to admit it, but economic incentives often play a part - if making a change is going to result in financial benefit then change may well occur more quickly.
Some fascinating trends have been seen in the finance markets over the past few months, and none more so than the fund financing which was closed recently by EQT.
An improvement in environmental, social and governance (ESG) performance will have major societal benefits, but at a practical level it will also result in enhanced pricing on the facility provided to the fund by a group of lenders.
I think we will see much more of this, and I suspect that it will not be limited to fund level facilities.
EQT procured the largest-ever ESG-linked subscription credit facility from a syndicate of lenders including BNP Paribas and SEB, the firm said. The bridge facility has a current value of €2.3 billion and is capped at €5 billion.