The socio-ecological transformation requires profound changes to the financial system. Although sustainable finance policy has gained political importance, large amounts of capital continue to flow into fossil fuels and other climate-damaging activities, while investment in a sustainable transformation of the economy and society remains far below what is needed. Civil society has a crucial role to play in pushing for deeper reforms at the EU level and within the broader global financial architecture in line with ecological limits and social justice concerns.  

This reflection paper invites civil society organizations (CSOs) to reflect on their current approaches and offers considerations for future strategies in shaping financial sector transitions. The paper draws on recent research into civil society strategies and their impact in the field of sustainable finance within Germany and at the EU level.  

The findings show that many CSOs have so far primarily relied on cooperation, transparency, and reputational approaches, such as rankings, reports, and policy advice. While these strategies have increased the visibility of civil society perspectives within the financial sector, they have mostly resulted in limited change. Deeper structural reforms of the financial system remain rare. Less commonly used, but potentially highly effective, are confrontational approaches such as litigation, public “naming and shaming,” and stronger engagement with the broader public. 

Based on the findings, three key considerations emerge for the future engagement of civil society actors in sustainable finance: 

1. Building capacity and alliances: Addressing key barriers for CSO involvement in financial sector transitions such as technical complexity and limited resources requires investments in capacity-building and strategic collaboration, and division of labor among CSOs.
2. Making more use of confrontational approaches: As reputational risks are very important to the financial sector, CSOs should expand the use of reputational strategies such as litigation or public “naming and shaming”.
3. Strengthening public mobilization: Public mobilization and awareness-raising are essential to build the political pressure needed for deeper financial system reforms.