Difference between revisions of "Green Asset Ratio"
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The ''Green Asset Ratio'' (GAR) is based on the [[EU Sustainable Finance Taxonomy]] and is a [[COP21 | Paris aligned]] ratio that can be used to identify whether banks are [[Sustainable Finance | financing sustainable]] activities, such as those consistent with the Paris agreement goals. | The ''Green Asset Ratio'' (GAR) is based on the [[EU Sustainable Finance Taxonomy]] and is a [[COP21 | Paris aligned]] ratio that can be used to identify whether banks are [[Sustainable Finance | financing sustainable]] activities, such as those consistent with the Paris agreement goals. | ||
| − | The GAR shows the proportion of assets that are environmentally sustainable and contribute substantially to the objectives of climate change mitigation or climate change adaptation or that enable other activities to contribute substantially to those objectives. | + | The GAR shows the proportion of assets that are environmentally sustainable ([[Green Asset]]) and contribute substantially to the objectives of climate change mitigation or climate change adaptation or that enable other activities to contribute substantially to those objectives. |
[[Category:Sustainable Finance]] | [[Category:Sustainable Finance]] | ||
Latest revision as of 17:36, 9 April 2021
Definition
The Green Asset Ratio (GAR) is based on the EU Sustainable Finance Taxonomy and is a Paris aligned ratio that can be used to identify whether banks are financing sustainable activities, such as those consistent with the Paris agreement goals.
The GAR shows the proportion of assets that are environmentally sustainable (Green Asset) and contribute substantially to the objectives of climate change mitigation or climate change adaptation or that enable other activities to contribute substantially to those objectives.
