Banks are increasingly reporting on their future contribution towards sustainability. The most common public commitment is their ambition to redirect capital flows towards sustainable investments as part of the lending business. This is where the green asset ratio comes into place as it shows how green banks’ portfolios are. But …
There is no one single definition for sustainability risks but most experts agree on two facts: sustainability risks aren’t simple to address and the scarcity and reliability of data to assess them are a common issue. According to the SFDR (sustainable finance disclosure regulation), “Sustainability risk means an environmental, social or governance event …
In this article, we dive into the EU Taxonomy for sustainable finance based on the 2021 report by the UNEP FI (United Nations Environment Programme Finance Initiative), and the European Banking Federation (EBF). We are especially focusing on the Taxonomy in banking. Given that most companies are at different stages …
Quo vadis Earth? The pursuit of relentless growth in a planet with limited resources, our heavy dependence on fossil fuels, the continuous growth and development of technology on a scale never seen before, climate change and mass migrations. These are only few of the growing global concerns unsettling decision-makers worldwide. …
Myths (from the Greek “mythos”) are as old as the human memory can remember. Present in all domains of our lives, even in the fact-based world of finance, they rise and adapt to reality until, one day, they fall into oblivion. New fields come accompanied by beliefs that frequently help …
It’s interesting to think about what externalities meant to business years ago, before the current context with SDGs, corporate responsibility and ESG criteria gaining ground. The general opinion was that they had no impact on profitability. Indeed, for many decades, economists considered the impact of production and consumption on the …
