Sustainable Finance

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

• 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

• Glossary of Sustainable Finance
• EU Sustainable Finance Taxonomy
• Stranded Assets

Forums

• Reddit Sustainable Finance Forum
• WT.Social Sustainable Finance Forum