Just transition and Rate of return: Difference between pages

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(Expand the page for different annual bases of quoting rates.)
 
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''Climate change - financial risks - climate transition risk - UN - International Labour Organization (ILO) - OECD''.
The investor's return on an investment, expressed as a proportion of the amount invested.


The concept of a Just Transition to a sustainable economy is a tool to:
Most commonly expressed as a percentage.


*Understand who will be affected by action to address climate change.
*Distribute the benefits in a fair manner.


<span style="color:#4B0082">'''Example'''</span>


:<span style="color:#4B0082">'''''Social inclusion & eradication of poverty goals'''''</span>
GBP 1 million is invested.


:“A just transition for all towards an environmentally sustainable economy needs to be well managed and contribute to the goals of decent work for all, social inclusion and the eradication of poverty.
GBP 1.03 million is repayable at the end of the period.  


:The greening of economies will enhance our ability to manage natural resources sustainably, increase energy efficiency and reduce waste, while addressing inequalities and enhancing resilience.”


:''ILO - Impact Taskforce - Time to deliver, December 2021.''
The rate of return per period (r) is:


r = (End amount / Start amount) - 1


== See also ==
 
* [[Climate change]]
''Which can also be expressed as:''
* [[Climate transition risk]]
 
* [[European Bank for Reconstruction and Development]] (EBRD)
r = (End / Start) - 1
* [[Impact Taskforce]]
 
* [[Inclusion]]
''or''
* [[Inequality]]
 
* [[International Labour Organization]]  (ILO)
r = <math>\frac{End}{Start}</math> - 1
* [[Net zero]]
 
* [[Organisation for Economic Co-operation and Development]]  (OECD)
 
* [[Poverty]]
= <math>\frac{1.03}{1}</math> - 1
* [[Reputational risk]]
 
* [[Resilience]]
= 0.0300
* [[Stranded assets]]
 
* [[Sustainability]]
= '''3.00%''' per period
* [[Transition]]
 
* [[Transition finance]]
 
* [[Transition risk]]
=== Basis of quoting rates of return ===
* [[United Nations]]  (UN)
 
The rate of return in the example above has been calculated and stated on a periodic basis.
 
Rates of return are often also quoted on an annual basis, following the conventional quoting convention for the market in which the proposed deal is being quoted.




==External links==
== See also ==
[https://www.ebrd.com/what-we-do/just-transition Just transition - European Bank for Reconstruction and Development (EBRD)]
* [[Conventional year]]
[https://www.impact-taskforce.com/media/gq5j445w/time-to-deliver-final.pdf Time to deliver: mobilising private capital at scale for people and planet - ITF report, December 2021]
* [[Effective annual rate]]
* [[Nominal annual rate]]
* [[Periodic]]
* [[Periodic rate]]
* [[Real return]]
* [[Return]]
* [[Yield]]


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Trade_finance]]

Revision as of 17:01, 19 November 2015

The investor's return on an investment, expressed as a proportion of the amount invested.

Most commonly expressed as a percentage.


Example

GBP 1 million is invested.

GBP 1.03 million is repayable at the end of the period.


The rate of return per period (r) is:

r = (End amount / Start amount) - 1


Which can also be expressed as:

r = (End / Start) - 1

or

r = <math>\frac{End}{Start}</math> - 1


= <math>\frac{1.03}{1}</math> - 1

= 0.0300

= 3.00% per period


Basis of quoting rates of return

The rate of return in the example above has been calculated and stated on a periodic basis.

Rates of return are often also quoted on an annual basis, following the conventional quoting convention for the market in which the proposed deal is being quoted.


See also