Sustainable finance
Sustainable Finance
The integration of environmental, social and governance considerations into financial decision-making — the umbrella field of ESG investing, green instruments and disclosure rules.
Definition
Sustainable finance is the process of taking environmental, social and governance considerations into account when making investment and lending decisions, so that capital flows support long-term, sustainable economic activity. The field spans ESG integration in asset management, labelled instruments (green, social, sustainability and sustainability-linked bonds and loans), taxonomies defining sustainable activities, disclosure regimes (SFDR, CSRD, ISSB), and stewardship — coordinated in the EU by the sustainable finance action plan and globally by networks of regulators and central banks.
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