The FEST (Financial Ecosystems for Systemic Transformation) community is accelerating development of the field of financing systemic transformation. This field comprises all those working for financial transformation to greatly increase the flow of, and ease of access to, finance to address today's polycrises. This includes private, public and foundation finance.
Financing Systemic Transformation (FST) is integral if we are to address structural social inequality, environmental, and economic crises. However, the field of FST is currently underdeveloped in the scale and depth that is required.
The FEST field grows out of three years of activity of Catalyst 2030's Working Group 11. It represents a broadening effort to develop an enabling ecosystem for financing transformation. An early product is the "Investigation into Financing Transformation", which can be viewed below.
Work leading up to the creation of FEST produced two major insights:
Transformation/systemic finance" (see table below) is newly emerging field, distinct from "progressive finance".
Those developing the field of Financing Systemic Transformation (FST) are developing systems rather than individual adjustments to the traditional system, like creating funds/new pots of money, new deal flows and measurement approaches.
The distinctions outlined in the above were reinforced by others, whose work can be seen in the following sections.
The FEST community has identified these four components as definitional for the field of Financing Systemic Transformation (FST). They are:
The FEST community includes and has been influenced by a number of Thought Leaders on the subject of Financing Systemic Transformation. The key influential reports can be found below:
An Investigation into Financing Transformation
Bounce Beyond, Catalyst 2030, Cattail Strategy
Approaching the Tipping Point: Recommendations for building the marketplace for system-level investing.
The Investment Integration Project (TIIP)
Funding Governance for Systemic Transformation
Design Foundations for Systems Capital
Griffiths University, Yunus Centre
Transformation Capital - Systemic Investing for Sustainability
Investing in System Innovation
The Rockwool Foundation
Systems Change: An Emerging Practice in Impact Investing
Transformative Investment: New rules for investing in sustainability transitions
Penna, Schot and Steinmueller