Sustainable finance: Difference between revisions
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imported>Doug Williamson (Expand to clarify relationship with Green finance. Source: European Commission https://ec.europa.eu/info/business-economy-euro/banking-and-finance/sustainable-finance_en) |
imported>Doug Williamson (Add link.) |
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* [[Climate risk]] | * [[Climate risk]] | ||
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* [[Governance]] | * [[Governance]] | ||
* [[Green finance]] | * [[Green finance]] | ||
Revision as of 13:48, 8 August 2019
Sustainable finance is finance raised for the purpose of sustainable projects.
Sustainable finance includes a strong green finance component that aims to support economic growth while:
- Reducing pressures on the environment
- Addressing green-house gas emissions and tackling pollution
- Minimising waste and improving efficiency in the use of natural resources
Sustainable finance also encompasses increasing awareness of and transparency about:
- The risks which may have an impact on the sustainability of the financial system
- The need for financial and corporate market participants to mitigate those risks through appropriate governance
Sustainable finance pricing
- "The concept of climate risk is becoming central to financial equations, and sustainable (including green) finance is gaining ground and increasingly priced above, or on a par with, mainstream investments."
- The Treasurer magazine, August 2018, p24.
