Introduction
摘要
This book aims to detail most of the steps for greening banks. It starts with explaining the primary profit and capital adequacy indicators to establish the conditions for feasible sustainability initiatives. It then presents the primary methods for incorporating environmental and social indicators in capital requirement and value-at-risk estimations. The following chapters focus on sustainable lending and ESG investing, describing several approaches to such integration, from exclusion criteria and divestment strategies to an ESG-adjusted Capital Asset Pricing Model (CAPM) approach. Finally, the last chapter deals with green central banking, from theoretical arguments on the costs and benefits of allowing these institutions to extend their mandates to methodologies for greening stress testing, the primary supervisory tool for estimating systemic risks.