UN GLOBAL COMPACT LAUNCHES FIRST PRACTICAL GUIDE FOR COMPANIES LEADING ON BLENDED FINANCE
Canada NewsWire
LONDON, June 22, 2026
New Playbook empowers businesses to take an active role in structuring deals within the $24B blended finance market.
LONDON, June 22, 2026 /CNW/ -- The UN Global Compact CFO Coalition for the SDGs today launched Business-Led Blended Finance: A Practical Playbook, the first guidance document written specifically to help real economy companies move from passive recipients of blended finance to active architects of deals that strengthen economic resilience and align with country-led development priorities.
Blended finance, the strategic use of public or philanthropic capital to improve the risk-return profile of investments and unlock private capital in underserved markets, has grown significantly over the past five years, with total annual flows rising from US$14 billion in 2020 to US$24 billion in 2024. Yet nearly all existing blended finance guidance is written for capital providers: governments, development finance institutions (DFIs) and multilateral development banks (MDBs).
Released during London Climate Action Week 2026, Europe's largest city-wide climate festival, the Playbook addresses a fundamental imbalance in the global blended finance market. Business leaders are key project developers and capital deployers for blended finance but have been left without a roadmap.
The Playbook changes that. Grounded in empirical data from Convergence and in-depth interviews with companies that have successfully structured and executed blended finance transactions, from multinationals to SMEs in emerging markets, it provides real economy players with the practical tools they need to engage with confidence.
Sanda Ojiambo, CEO and Executive Director of the UN Global Compact, commenting at the Playbook's launch said: "The private sector has a unique and largely untapped role to play in blended finance, but as an architect of deals that drive systemic impact across industries and markets. This Playbook is the operational tool that enables finance leaders to step into that role. At a time when public balance sheets are under pressure and the SDG financing gap stands at $4 trillion annually, we cannot afford to leave corporate leadership on the sidelines. Nor can we afford financing models that are disconnected from country priorities. This Playbook helps align private capital with nationally driven pathways to resilience and growth."
Mahar Al-Haffar, CFO of Cemex and co-Chair of the Advisory Board for the UN Global Compact CFO Coalition for the SDGs said: "Blended finance can play a critical role in accelerating investment into sustainable infrastructure and industrial decarbonization, particularly in markets where risks and financing costs can otherwise slow progress. But while the opportunity is significant, the structuring process can often be complex and resource-intensive. Clearer, more standardized tools are essential to help companies engage more confidently and efficiently. This Playbook is an important step forward because it helps translate blended finance from a niche financing concept into a practical mechanism that businesses can use to support long-term growth, resilience and sustainability."
Koushik Chatterjee, Executive Director and CFO of Tata Steel and co-Chair of the Advisory Board for the UN Global Compact CFO Coalition for the SDGs said: "Blended finance has the potential to become one of the most powerful tools in sustainable finance, particularly in supporting capital-intensive decarbonization and transition initiatives. Our experience demonstrates that large-scale industrial transformation is only possible when governments, business and financial institutions work in close partnership to align long-term economic resilience with sustainability objectives. This Playbook is important because it gives companies practical guidance on how to engage earlier, structure transactions more effectively and help shape projects that deliver both commercial viability and measurable impact."
The Playbook identifies energy and infrastructure as the twin drivers of corporate engagement in blended finance, together accounting for nearly three-quarters of corporate investment activity. It finds that these sectors, under geopolitical pressure on energy security and supply chain resilience, are natural entry points for business-led approaches, as their tangible, long-term assets align with both corporate sustainability commitments and investor mandates.
Case studies range from FCC Construcción, which coordinated 13 organizations across five countries to fast-track digital infrastructure permitting through the EU's Horizon Europe programme, to Safaricom's collaboration with other telecoms companies, backed by the International Finance Corporation and Multilateral Investment Guarantee Agency, to expand access in Ethiopia and the partnership between Tata Steel and the UK Government to decarbonize steel manufacturing at Port Talbot.
Beyond case studies, the Playbook includes a Toolkit for Blended Finance Risk Management and Capital Structuring and a Checklist for Navigating Due Diligence & Project Preparation, practical resources that can be utilized by corporate finance and sustainability teams when considering and designing blended finance transactions.
Notes to Editors
About the UN Global Compact
As a special initiative of the United Nations Secretary-General, the UN Global Compact is a call to companies worldwide to align their operations and strategies with Ten Principles in the areas of human rights, labour, environment and anti-corruption. Our vision is clear: to mobilize business to transform sustainability ambition into action at the scale the world demands. With more than 25,000 participants and a presence in over 100 countries through 5 Regional Hubs and more than 70 Country Networks and expansion territories, the UN Global Compact is the world's largest corporate sustainability initiative.
For more information, follow @globalcompact on social media and visit our website at unglobalcompact.org
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SOURCE United Nations Global Compact