Sustainable Finance Competence List

Definition

A Sustainable Finance Competence in the context of a Financial Competence Framework is a Financial Competence attributed to an individual characterised by specific Sustainable Finance related knowlege, skills or attitudes.

More specifically, a sustainable finance competence indicates that an individual has the knowledge and skills needed to perform financial tasks with awareness of their Sustainability profile, or, in a professional context, do a sustainable finance related job. It will generally also indicate they have the interpersonal skills and general awareness or wisdom required to operate effectively in a sustainable financial system.

Competence List

The following sustainable finance competence list adapts the broader EU/OECD Framework for adults. Competences are grouped along four top-level categories.

Money and Transactions

This broad content area covers the knowledge, skills and attitudes related to the different forms of money and currencies, income, prices, payments and purchases and the importance of financial records and contracts.

• Purchases: Considers sustainable alternatives to new purchases, such as reusing and recycling
• Sustainability Aspects Of Prices And Purchases:
  • Aware that purchased goods or services might have different environmental and social impacts
  • Factors one's environmental, social and governance preferences in the decision to purchase a good or a service
  • Motivated to learn more about the origin, production conditions, environmental and social impacts of a good or service if relevant, as well as the governance performance of the company offering it
  • Motivated when applicable to question the information about environmental and social impacts, and governance performance disclosed by the seller if relevant

Planning and Managing Finances

This content area covers the knowledge, skills and attitudes related to budgeting; managing income and expenditure; saving; investing; longer term planning; retirement; credit; debt and debt management.

• Choosing Saving Products:
  • Knows that savings products may have different sustainability characteristics (environmental, social and corporate governance aspects)
  • Chooses saving products in line with one’s preferences, including sustainability preferences
  • Confident in choosing savings products in line with one’s preferences, including sustainability preferences, or asking advice if needed
• Choosing And Diversifying Investments:
  • Knows the characteristics of various investment products including levels of risk, liquidity, expected performance and sustainability features or can find out easily
  • Knows that different investment products may have different sustainability characteristics (environmental, social and corporate governance)
  • Able to incorporate personal preferences with respect to investment goal, risk tolerance, time horizon and sustainability, when making an investment decision
  • Confident and motivated to compare the level of sustainability of investment products using for example other standards, labels or ratings

Risk and Reward

This content area covers the knowledge, skills and attitudes related to the identification of risks; financial safety nets; insurance; and balancing risk and reward.

Financial Landscape

This content area covers the knowledge, skills and attitudes related to regulation and consumer protection; rights and responsibilities of consumers; the use of financial education, financial information and financial advice; financial products and services; scams and fraud; understanding of tax and public spending; and external influences on financial decisions.