Introduction to Sustainable Finance and Investing: Environmental- and Social-Based Finance to Funnel Capital for a Low-Carbon Economy
摘要
Sustainable finance encompasses a broad range of environmental and social considerations in investment and lending decisions, from climate change to human rights. It is not only about analyzing corporates, governments and financial institutions to understand their material information and associated risks, finding new opportunities, and marrying up the “doing good” (non-financial) and “doing well” (financial), it is also about funneling capital towards a low-carbon economy within developed countries as well as towards the Global South to help implement climate adaptation measures. In the absence of a harmonized, consistent global regulation or standard, sustainable finance is facing a ‘tsunami’ of initiatives and alliances, with the Principles of Responsible Investment (PRI) initiated by the United Nations at the forefront as the most regarded and adopted. This chapter introduces key notions in sustainable and climate finance such as risks and opportunities, ESG policies, green and sustainable taxonomies, mandatory ESG-related disclosures and how capital is being deployed to contribute to building tomorrow’s low-carbon economy. It also elaborates on the reasons why the Global South should be put at the center of the stage, and what efforts are needed to aim to achieve both the SDGs and the Paris agreement climate goals as well as the relevant drivers serving this ambition.