Category:Sustainable Finance

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The sustainable finance category organizes articles touching diverse Sustainable Finance topics. The sub-categories of sustainable finance are represented here using two sets of matrices to highlight different dimensions.

Notes

  • Sustainable Finance is a rapidly evolving field and many concepts, initiatives and tools are still fluid, overlapping or poorly defined. (The Glossary of Sustainable Finance collects some of these emerging initiatives and associated terminologies).
  • The tables and classifications included here are work-in-progress and some entries are still stubs / preliminary (suggestions are welcome).
  • The focus here is on how the financial system facilitates the sustainability transition for economic entities and activities, which is but a subset of the overall tools, policies and regulations being considered.

By Economic Entity and Economic Activity

The first classification matrix of sustainable finance takes a sectoral view. Groups of sustainable finance topics reflect how they relate to different economic entities or agents (individuals, companies, the public sector etc) and their (formal) economic and financial activities (consumption, production of goods or services, investment etc).

(Sustainable) finance professionals and business lines typically specialize to provide services in some the subcategories.

Economic Activity
Entity Consumption / Production Saving / Investment Borrowing Risk, Disclosure, Governance
Individuals Ecolabel, Sustainability Labels And Standards Green Savings, Sustainable Investment, Pension Green Mortgage, Green Credit Card
Small Medium Enterprises Supply Chain Finance GHG Project Protocol Green Loan ESG Risk
Corporations Supply Chain Finance GHG Project Protocol, GHG Protocol for Corporations Green Bond, Capital Markets Disclosures (TCFD, ISSB), ESG Risk
Banks Green Mortgage, Green Loan GHG Project Protocol PCAF, PACTA, TCFD
Insurers Sustainable Investment, Sustainable Insurance Disclosures (TCFD)
Local Government Green Public Procurement GPC Protocol, GHG Project Protocol Green Bond ICLEI
Government Green Public Procurement Green New Deal Green Bond Disclosures, EU Sustainable Finance Taxonomy, IPCC

By Sustainability Objective and Available Tools

The second matrix takes a more fundamental view and groups topics according to sustainability objectives and available tools (in the general sense, including technology, financial instruments and policies). Objectives are derived from the UN Sustainable Development Goals

SDG Objective Information / Technology Tools Financial Instruments / Markets Legislative / Policy Tools
1. No Poverty / Financial Inclusion Open Source Finance, Mobile Banking, Credit Scoring, Complementary Currency Microfinance, Microinsurance
2. Zero Hunger / Sustainable Agriculture Crop Monitoring Farming Insurance
3. Good Health and Well-being Health Insurance Employment Practices
4. Quality Education Education Bonds Financial Literacy
5. Gender Equality Complementary Currency Board Diversity, Gender Lens Investing
6. Clean Water and Sanitation Water Risk CEO Water Mandate
7. Affordable and Clean Energy Energy Pricing Models, PCAF, PACTA, Renewable Energy Financing, Carbon Markets Environmental Impact Disclosure
8. Decent Work and Economic Growth Microfinance, Crowdfunding
9. Industry, Innovation, and Infrastructure Project Finance Public-Private Partnerships, Equator Principles
10. Reducing Inequality Mobile Payment, Complementary Currency Minimum Wage
11. Sustainable Cities and Communities Risk Data, GPC Green Public Procurement
12. Responsible Consumption and Production Pricing Models Carbon Taxes, Greenwashing
13. Climate Action Carbon Footprint, Climate-Related Risk Green Bond, Catastrophe Insurance Disclosures (GHG Protocol)
14. Life Below Water Marine Risk Ocean Finance Poseidon Principles
15. Life On Land Biodiversity Risk IFC Environmental Health and Safety Guidelines
16. Peace, Justice, and Strong Institutions Global Legal Entity Identifier, KYC Policies for Indigenous Peoples, Affected Communities, Business for Peace
17. Partnerships for the Goals Impact Measurement, Integrated Reporting Multi-Stakeholder Initiatives

The table builds among others on[1], [2]

References

  1. The SDG Industry Matrix, UN, KPMG 2015
  2. Investing for the common good: a sustainable finance framework. D. Schoenmaker, Bruegel 2017

Subcategories

This category has the following 13 subcategories, out of 13 total.

B

C

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G

O

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