Difference between revisions of "Externality"
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Latest revision as of 12:58, 11 May 2022
Definition
Externality. A positive or negative consequence (benefits or costs) of an action that affects someone other than the agent undertaking that action and for which the agent is neither directly compensated nor penalised.
In the context of Sustainable Finance the challenge is that social and environmental externalities are not integrated in decisions taken by companies, investors, financial intermediariers and public sector authorities.
See Also
