Sustainable finance is a concept so self-evidently sensible that you might wonder why it hasn’t always been practiced. Banks and financial institutions are increasingly offering capital to fund projects and companies that promise ESG (Environmental, Social & Governance). In the rush to appear sustainable, people tend to get confused: What really drives success? Is it the outcome—what you achieve—or the behaviour—how you get there?
The answer, as in many aspects of life and business, is both matters, but one leads the other.
Outcomes Are the “What.”
Outcomes are the things you can point to: reduced emissions, thriving green businesses, cleaner oceans, happier communities. Banks love outcomes because they are measurable. Investors, regulators, and the public demand them.
It’s tempting to focus on outcomes because they provide a scoreboard. A bank can say: “We’ve financed $10 billion in renewable energy.” That sounds good, and sometimes it is good, but chasing outcomes alone can lead to perverse incentives—what’s commonly called greenwashing.
When you focus solely on outcomes without substance behind them, you get quick fixes and superficial progress. It’s like trying to get rich without understanding value creation. You can fool people for a while, but eventually, reality catches up.
Behaviours Are the “How.”
Behaviours are harder to see, but they matter far more. They are the policies, processes, and habits that make up an institution’s DNA. Do you have rigorous ESG standards for your loans? Do you work with your clients to help them become more sustainable? Are you turning down profitable deals because they aren’t aligned with long-term values?
Behaviours may not deliver immediate applause, but over time, they produce the right outcomes.
Think about Berkshire Hathaway. Warren Buffett never set a short-term earnings target. Instead, he focused on Behaviours —buying good businesses at fair prices, avoiding stupid mistakes, and treating shareholders with integrity. Does it work all the time, no, though in aggregate and over time, yes. The outcomes followed.
Sustainable finance works the same way. Focus on creating the right Behaviours, and the outcomes, more often than not, will take care of themselves.
Behavior Drives Outcome—Not the Other Way Around.
The truth is, you can’t manage outcomes directly. Outcomes are the byproduct of decisions, habits, and systems. If you want lower carbon emissions, you can’t just wish them into existence. You have to behave in a way that reduces them: financing better businesses, aligning incentives, and prioritizing long-term gains over short-term noise.
The best banks and financial institutions understand this. They don’t get distracted by press releases about hitting some arbitrary “green” target. Instead, they ask: Are we doing the right things day in and day out? If you get the behavior right, the scoreboard will look after itself.
Final Thoughts: Don’t Be Stupid.
If you want to succeed in sustainable finance—or anything else—focus on Behaviours first. Outcomes are important, but they are only evidence of what you’ve already done. Anyone can claim credit for a good outcome. Institutions that practice sound Behaviours consistently will achieve meaningful, sustainable results over the long haul.
As always, the rule is simple: avoid stupidity. Don’t chase outcomes without substance, and don’t ignore the Behaviours that drive real progress. Act with integrity, think long-term, and let the results speak for themselves.
Relevance for CEOs Running Their Own Businesses.
This outcomes-versus- Behaviours dilemma applies just as much to CEOs running their own businesses. A CEO obsessed with outcomes—like quarterly profits, share price growth, or market dominance—may push for short-term wins at the expense of long-term health. Cutting corners, underinvesting in people, or chasing fads can produce short-term spikes, but it’s Behaviours like building a strong culture, prioritizing customer satisfaction, and making disciplined capital allocation decisions that create enduring success. The best CEOs understand that their behavior sets the tone for the entire organization. If they focus on doing the right things consistently—treating employees fairly, delivering value to customers, and investing wisely—the outcomes will naturally follow. CEOs who play the long game through sound Behaviours don’t just succeed; they build companies that last.
