The Sustainability Story – Emma Harvey Smith: Mobilizing Global Capital for a Sustainable Future

Podcast: The Sustainability Story
Host: Paul Moody, CFA Institute
Guest: Emma Harvey Smith, Chief of Staff at the Green Finance Institute
Date: November 7, 2025

Episode Overview

This episode delves into the intersection of finance and sustainability with Emma Harvey Smith, Chief of Staff at the Green Finance Institute (GFI). Emma and host Paul Moody explore how global capital can be mobilized to achieve net zero and broader sustainable outcomes. They discuss the evolution and mission of the GFI, key barriers and opportunities in sustainable finance, the importance of public and private sector collaboration, innovations in nature-related finance, and practical advice for investment professionals and those aspiring to transition into the sustainability sector.

Key Discussion Points & Insights

Emma’s Professional Journey & The Green Finance Institute

• Background in Science and Finance

  • Emma started as a physicist and transitioned into banking at Barclays, where her interest in sustainability and green finance took hold.
  • Quote:

    "It was quite natural that these two passions, science and finance, would come together around the sustainability theme." (01:12)

• Green Mortgage Innovation

  • At Barclays, Emma helped launch the UK’s first green mortgage by a high street bank, designing solutions to incentivize customers to invest in energy-efficient homes.

• Joining & Growing GFI

  • GFI was established in 2019 as a response to the UK Green Finance Task Force, with the mission to accelerate sustainable finance and capital mobilization for net zero across diverse sectors.

  • Growth from a small UK-based team to over 70 people, operating across nine countries in sectors including buildings, transport, nature, aviation, and industrial adaptation.

  • Quote:

    "We provide a neutral platform that can help co design, test and scale these new markets, these new asset classes that are going to mobilize capital towards sustainable outcomes." (07:46)

The Global Challenge: Local Contexts and Consistency

• Local Context Matters

  • Sustainability solutions vary by region:
    • Indonesia: Transition away from coal.
    • UK: Focus on decarbonizing leaky buildings and energy-intensive industry.
    • Australia/US: Need for grid reinforcement to accommodate renewables.
    • Brazil: Priority on preventing deforestation.
  • Identifying local influential actors is critical for successful initiatives. (05:41)

• Importance of Global Consistency

  • Inconsistent regulatory messages across jurisdictions create confusion and inefficiency for corporates and investors.

GFI Mission and Approach

• Core Mission

  • Accelerate transition to a clean, resilient, and sustainable economy by channeling private and public capital at scale.

  • Quote:

    "We sit at the nexus between the public and the private sector...a neutral platform which also is highly beneficial." (07:03)

• Unique Positioning

  • GFI as a neutral, non-profit intermediary fosters collaboration and co-design across public and private sectors.

  • Role with Governments

    • Advises on policies and regulations to unlock barriers and catalyze investment.

Barriers and Blockers in Scaling Sustainable Finance

• Short-Term Barriers

  • Political/geopolitical headwinds, backpedalling, and "green hushing."

  • Lack of all parts of the value chain working together—missing links in policy, market infrastructure, viable financial solutions, and scaling successful pilots.

    • Quote:

      "We have pockets of excellence...but what we don't see is...weaving together all those factors so that we focus on sectoral transitions...that can be replicated and scaled out." (10:03)

• Need for ‘Glue’

  • A holistic approach to connect all players and initiatives around common real economy outcomes.

Opportunities and Sectoral Innovation

• “Every Sector Matters”

  • While every sector is critical, Emma highlights the emerging opportunity in "nature, biodiversity, agriculture" finance, which historically lacked clear revenue streams and thus struggled to attract investment.

    • Quote:

      "We've seen a 12% potential reduction in UK GDP from nature degradation... larger impact than COVID… The quantification of risks to our supply chains is huge." (13:27)

• Innovative Market Models

  • GFI leads the “Revenues for Nature” project, exploring investable and scalable business models for natural capital and biodiversity.

Role of Finance Professionals: The Three Rs

• Risk, Reputation, Return

  • Professionals must balance the risks of climate impacts, the reputational implications of sustainability inaction, and the creation of viable returns.

    • Quote:

      "Our mantra was risk, reputation and return... You have a lower risk asset, which means it's lower likelihood of default, which means you could offer a lower interest rate without eroding your margin." (15:21–18:00)

• Case in Point: Green Mortgages

  • Lower default rates on energy-efficient homes justify preferential green mortgage terms without reducing lender margins.

Public Policy and Regulations

• Essential Role of Policy

  • Reliable, clear policy frameworks and demand signals are crucial to scaling green finance and giving investors confidence.

  • Public sector can use "blended finance," providing small amounts of catalytic capital to support new markets and de-risk investments.

    • Quote:

      "We cannot scale green finance in a vacuum. We need to have enabling policies and regulations and demand signals that will let the investment community know that actually this is a good sector to invest in." (19:39)

• GFI’s Policy Leadership

  • Advises on deployment of the UK National Wealth Fund (£27+ billion) to maximize private capital crowd-in and catalyze priority sectors.

Optimism, Impact & Future Outlook

• Despite Headwinds, Deals Are Happening

  • Emma cites recent high-profile deals and blended finance platforms, emphasizing that meaningful capital is still being deployed even if not always under the "green" label.

    • Quote:

      "We're seeing deals happen, they're not always labeled green, but they're still having a positive climate impact." (22:48)

• Shift to a ‘Transactional Phase’

  • The sustainable finance sector is maturing, focusing on real-world investments and practical outcomes.

Advice for Professionals Wanting to Enter Sustainability

• Develop Dual Skill Sets

  • Master both sustainability knowledge (through qualifications, practical experience) and hard finance skills for maximum impact.
    • Quote:

      "Build up your softer technical sustainability skills and then build up your hard skills in finance because that will give you a really rounded profile to succeed in this sector." (25:19)

• Mentorship Matters

  • Emma credits Dr. Rhian-Mari Thomas OBE, GFI Chief Executive, as a guiding force and advocate for ambitious, purposeful finance careers.

Getting Involved with the Green Finance Institute

• How to Engage

  • Visit the [GFI website], subscribe to the Green Finance Quarterly, and explore sector programs.

  • Financial institutions motivated to drive net zero investment are encouraged to connect.

    • Quote:

      “Do head over to our website…sign up for our Green Finance Quarterly…we're always keen to have a conversation and see if there's an opportunity to work together.” (27:10)

Notable Quotes & Memorable Moments

• On Finance’s Power

  "Finance can facilitate a transition towards net zero...applying the rigor of finance and the rigor of science to deliver sustainable outcomes for our economy." (01:12)

• On Market Innovation

  “With nature, it’s unclear where that cash flow can come from. Today that’s made it quite challenging to invest into. But we are starting to see some really innovative models starting to come forward.” (12:47)

• On Moving Beyond Net Zero

  “Sustainability isn’t just net zero, it is adaptation, it is resilience...because we have already reached 1.5 degrees.” (28:12)

Important Timestamps

• 00:18 – Emma’s background and move into sustainability
• 02:58 – Why join the Green Finance Institute?
• 05:41 – Global-local context in sustainability finance
• 07:03 – GFI’s core mission and evolution
• 09:12 – Key barriers facing sustainable finance
• 12:15 – Opportunity and innovation in nature finance
• 15:21 – Role of finance professionals: Risk, Reputation, Return
• 19:39 – Policy engagement and regulatory momentum
• 22:48 – Optimism, recent deals, and future outlook
• 25:19 – Advice for transitioning into sustainable finance
• 27:10 – How to get involved with the Green Finance Institute
• 28:12 – The importance of adaptation and resilience

Closing Note

Emma Harvey Smith delivers an inspiring and in-depth look at the practical realities and future promise of sustainable finance. Her insights, drawn from science, finance, and policy experience, underscore both the complexity and opportunity at the heart of the global transition to sustainability. The episode offers motivation and guidance for finance professionals at any stage, as well as practical, actionable advice for organizations seeking to participate in an economy-wide transformation.

For more information, visit the Green Finance Institute’s website and consider subscribing to their newsletter for ongoing updates in this vital and fast-evolving sector.