Sustainability focuses on meeting our own needs, without compromising the ability of future generations to meet their own needs. Sustainability does not only equate to environmental-ism, but considers the economy and society as well.
Sustainable finance is the adoption of this principle, and uses capital markets investment vehicles as a solution. This can be in the form of any financial services that integrates environmental, social and governance (ESG) criteria into business or investment decisions.
The 2018 Sustainable Development Report estimated that to meet the 17 SDGs, a global annual expenditure of between 5-7 trillion USD is required. In the face of global challenges, government and public financing alone will not be sufficient, and sustainable finance offers a crucial opportunity for private investors and financial institutions to implement effective change. Hence, integrating the ESG criteria into business and/or investment decisions for the long-term benefits of both clients and society is a pertinent topical trend the finance industry must continue to address.
This module covers the basics of sustainable finance, including the sustainable development goals (SDGs), environmental, social and corporate governance (ESG) criteria, and the ESG index, with opportunities to dive deeper into ESG issues and their impact.