Difference between revisions of "Sustainable Finance"
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== Definition == | == Definition == | ||
| − | '''Sustainable Finance''' denotes financial services and products that are integrating environmental, social and governance ([[ESG Criteria]]) into business or investment decisions. | + | '''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. |
| − | + | A narrower concept that focuses exclusively on the interface of finance with ''environmental issues'' is [[Green Finance]]. | |
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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 | + | * 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 Bond | green bonds]] | ||
| + | * [[Impact Investing]] | ||
| + | * [[Microfinance]] | ||
| + | * Active ownership, credits for sustainable projects | ||
== See Also == | == See Also == | ||
Latest revision as of 16:47, 10 May 2022
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.
A narrower concept that focuses exclusively on the interface of finance with environmental issues is Green Finance.
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
