Sustainable Finance
From Open Risk Manual
Definition
Sustainable Finance denotes financial services and products that are integrating environmental, social and governance (ESG Criteria) into business or investment decisions.
Segments
Activities that currently generally fall under the heading of sustainable finance are:
- sustainable funds (equities)
- green bonds
- Impact Investing
- Microfinance
- active ownership, credits for sustainable projects
Sustainable Finance Practices
Sustainable finance practices are rapidly evolving[1]
- Definitions of ESG factors
- Incorporation of sustainability into business strategies
- Governance, policies and risk management applicable to ESG Risks
- ESG and climate-related disclosures
- green financial products
See Also
References
- ↑ Sustainable Finance Market Practices EBA Staff Paper Series, Jan 2020