Difference between revisions of "Sustainable Finance"
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== Definition == | == Definition == | ||
'''Sustainable Finance''' denotes financial systems, services and products that are integrating environmental, social and governance ([[ESG Criteria]]) into business and/or investment decisions such that current social, environmental, and livelihood needs are not compromising the ability of future generations to meet their own needs. | '''Sustainable Finance''' denotes financial systems, services and products that are integrating environmental, social and governance ([[ESG Criteria]]) into business and/or investment decisions such that current social, environmental, and livelihood needs are not compromising the ability of future generations to meet their own needs. | ||
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== Sustainable Finance Practices == | == Sustainable Finance Practices == | ||
Sustainable finance practices are rapidly evolving<ref>Sustainable Finance Market Practices EBA Staff Paper Series, Jan 2020</ref> | Sustainable finance practices are rapidly evolving<ref>Sustainable Finance Market Practices EBA Staff Paper Series, Jan 2020</ref> | ||
| − | * Definitions of ESG factors | + | * Definitions of ESG factors and domains |
* Incorporation of sustainability into [[Business Strategy | business strategies]] | * Incorporation of sustainability into [[Business Strategy | business strategies]] | ||
* [[Governance, Risk and Compliance | Governance, policies and risk management]] applicable to [[ESG Risks]] | * [[Governance, Risk and Compliance | Governance, policies and risk management]] applicable to [[ESG Risks]] | ||
* ESG and climate-related disclosures | * ESG and climate-related disclosures | ||
| − | * | + | * Green Financial Products |
| + | * Engaging financial industry clients to reorient their investment plans to ensure consistency with the [[Paris Agreement]] | ||
| + | * Rorienting financial flows away from unsustainable activities | ||
== Sustainable Finance Segments == | == Sustainable Finance Segments == | ||
Revision as of 13:15, 15 November 2021
Contents
Definition
Sustainable Finance denotes financial systems, services and products that are integrating environmental, social and governance (ESG Criteria) into business and/or investment decisions such that current social, environmental, and livelihood needs are not compromising the ability of future generations to meet their own needs.
Sustainable Finance Practices
Sustainable finance practices are rapidly evolving[1]
- Definitions of ESG factors and domains
- Incorporation of sustainability into business strategies
- Governance, policies and risk management applicable to ESG Risks
- ESG and climate-related disclosures
- Green Financial Products
- Engaging financial industry clients to reorient their investment plans to ensure consistency with the Paris Agreement
- Rorienting financial flows away from unsustainable activities
Sustainable Finance Segments
Activities that currently generally fall under the heading of sustainable finance are:
- sustainable funds (equities)
- ESG Investing
- green bonds
- Impact Investing
- Microfinance
- Active ownership, credits for sustainable projects
See Also
References
- ↑ Sustainable Finance Market Practices EBA Staff Paper Series, Jan 2020
