3. Sustainable Development Versus Green Banking: Where Is the Link?

F.W. Geels, “The Impact of the Financial-economic Crisis on Sustainability Transitions: Financial investment, Governance and Public Discourse”, Environmental Innovation and Societal Transition, No. 6, p. 24, 2013.

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H. M. McLuhan was the first to use the term “global village”; The Gutenberg Galaxy, 1962.

A conversation by Marco Parcelli with Jeff Jonas, an IBM expert in the process, says, “to let them speak”, https://​www.​youtube.​com/​watch?​v=​ri8wHGcIS3M Click foxinc 2011 (access: 25.11.2018).

K. Schwab, founder and president of the World Economic Forum, states: “The fourth industrial revolution can strengthen both individuals and entire communities, as a result of creating new economic and social opportunities as well as conditions for development. But it can also lead to marginalization of some social groups, increase inequalities, contribute to the emergence of new security threats and disrupt interpersonal relationships”; see Kolodko G., The Wandering World, “It is not only progress and progress required by the majority of humanity that requires change, but even the maintenance of the natural environment, economy and societies in a state of relative equilibrium without certain changes is not possible. These changes must naturally take place on the path of economic growth”, 2008.

Climatic Paris Agreement 2015, Sustainable Development Goals UNDP adopted UNDP; more broadly, Boulding K., The Economics of a Coming Spaceship Earth, w: Jarret H. (red.), Environmental Quality in a Growing Economy, John Hopkins University Press, Baltimore s.314, 1966.

Skidelsky R., Skidelsky E. How much is enough? Penguin Books, New York 2012; broader: Jackson T. Prosperity without Growth. Economics for Finite Planet, Earthscan, London 2009.

TINA, “There is no alternative”, statement attributed to Margaret Thatcher proclaiming the desirable lack of state intervention and belief in the pursuit of markets for self-regulation.

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https://​sustainabledevel​opment.​un.​org/​topics/​greeneconomy (access: 19.11.2018).

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Mishan E. The Cost of Economic Growth, Staples Press, London, 1967; broader: Dietz R., O’Neil D. Enough is enough. Building a Sustainable Economy in World of Finite Resources, Earthscan from Routledge, London and New York, 2013.

Schumacher, as one of the first, made a comprehensive analysis of contemporary economic relations, and in addition showed their responsibility for the ecological and social collapse of many regions of the world (see: Schumacher 1973).

Boulding K., The Economics of a Coming Spaceship Earth, w: Jarret H. (ed.), Environmental Quality in a Growing Economy, Johns Hopkins University Press, Baltimore s.314, 1966.

The principle of sustainable development has been defined in the report of the World Commission on Environment and Development (the so-called Brundtland Commission); broader, https://​ec.​europa.​eu/​info/​business-economy-euro/​banking-and-finance/​sustainable-finance_​en (access: 27.11.2018).

Our Common Future Brundtland Commission, Oxford University Press, Oxford, 1987.

First statement from report WCED (the World Commission on Environment and Development, also known as the “Brundtland Commission”) 1987 reflecting the idea of sustainable development.

According to the UN report, GDP should not be a measure of success, especially for small and medium-sized economies’ long-term economic growth, because financial crises are often related to the unsustainable development of the financial sector (see in more detail: Stiglitz et al. 2008).

Internet of Things: Connections Counter, Cisco, 2013, Gartner Says 4.9 Billion Connected “Things” will be in use in 2015.

MaIntosh M., The Necessary Transition. The Journey towards the Sustainable Enterprise Economy, Greenleaf Publishing, London, 2013; broader: D.A. Loorbach, R. Lijnis Huffenreuter, “Exploring the Economic Crisis from a Transition Management Perspective”, EnvironmentalInnovationand Societal Transition, No. 6, 2013.

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ESG (environmental, social and governance) is a generic term used in capital markets and by investors to evaluate corporate behavior and to determine the future financial performance of companies. ESG factors are a subset of non-financial performance indicators which include sustainable, ethical and corporate governance issues such as managing the company’s carbon footprint and ensuring there are systems in place to ensure accountability. The European Federation of Financial Analysts Societies (EFFAS) has defined topical areas for the reporting of ESG issues and developed key performance indicators (KPIs) for use in financial analysis of corporate performance. EFFAS has identified nine topical areas that apply to all sectors and industries (energy efficiency; greenhouse gas (GHG) emissions; staff turnover; training and qualification; maturity of workforce; absenteeism rate; litigation risks; corruption; revenues from new products). Next to these nine areas, sector-specific ESGs and KPIs have also been defined. ESG has quickly become part of the investment jargon to describe the performance of investment and fund portfolios on environmental, social and governance criteria and the quality of their performance against measurable ESG factors that are reported to shareholders. ESG analysis can provide insight into the long-term prospects of companies which allows mispricing opportunities to be identified. Investors can find new market opportunities with companies that place the management of ESG factors at the core of the business. Company-specific ESG factors offer a benchmark for investors to judge the overall quality of the board’s governance and risk management processes and their positioning within an industry sector. The UN-backed Principles for Responsible Investment (UNPRI) provides a voluntary ESG framework for companies and funds, from which investors can make informed investment decisions that relate to sustainability and governance practices. The growing interest in ESG factors from institutional investors, in particular, reflects the view that environmental, social and corporate governance issues can affect the performance of investment portfolios and should therefore be given appropriate consideration by investors (access: 19.11.2018).

Corporate Social Responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders and the public. By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society including economic, social and environmental. To engage in CSR means that, in the normal course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to it. Read more: Corporate Social Responsibility, https://​www.​investopedia.​com/​terms/​c/​corp-social-responsibility.​asp#ixzz5YZN4smeE; see more in: “Blowfield, M., and A. Murray, Corporate responsibility; a critical introduction, Oxford University Press, New York, 2008.

Socially responsible investment (SRI) is an investment strategy that seeks both financial return and social good; broader: https://​www.​ussif.​org/​sribasics.

https://​academic.​oup.​com/​ejil/​article/​23/​2/​377/​487236 (access: 27.11.2018).

The “polluter pays” principle is implemented under the Environmental Liability Directive (ELD), which aims to prevent or remedy otherwise the damage caused to the environment, protected species and habitats, damage to water and damage to the soil. Under this principle, business entities carrying out activities that potentially burden the natural environment are obliged to take specific preventive actions minimizing the negative impact on the environment.

Panican A., Johansson H., Combating Poverty in Local Welfare Systems, Work and Welfare in Europe, 2016.

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Project finance EBRD, broader: https://​www.​ebrd.​com/​work-with-us/​project-finance.​html (access: 21.11.2018).

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Jeucken, M. (2001). Sustainable Finance and Banking, The finance Sector and The Future of the Planet, London, Earthscan.

The Fundamental International Initiatives for Supporting of Sustainable Finance Concept includes: The Equator Principles (EP); https://​equator-principles.​com (access: 12.11.2018). United Nations Environment Programme Finance Initiative (UNEPFI); http://​www.​unepfi.​org/​ (access: 12.11.2018); United Nations Global Compact (UN GC), broader: https://​www.​unglobalcompact.​org/​take-action/​events/​1673-high-level-meeting-of-caring-for-climate (access: 12.11.2018). Principles for Responsible Investment (PRI); broader: https://​www.​unglobalcompact.​org/​take-action/​action/​responsible-investment Collevecchio Declaration (CD); (access: 12.11.2018). https://​www.​publiceye.​ch/​de/​news/​implementing_​the_​collevecchio_​declaration_​on_​financial_​institutions_​and_​sustainability/​ Sustainability Reporting (Global Reporting Initiative—GRI); broader: https://​link.​springer.​com/​article/​10.​1023/​A:​1022958618391 (access: 12.11.2018).

Final report 2018 by the HLEG-LEVEL Expert Group https://​ec.​europa.​eu/​info/​sites/​info/​files/​180131-sustainable-finance-final-report_​en.​pdf (access: 15.11.2018).

CMU Action Plan http://​europa.​eu/​rapid/​press-release_​IP-15-5731_​en.​htm?​locale=​en (access: 21.11.2018).

The First Pillar—Minimum Capital Requirements; broader: https://​www.​bis.​org/​publ/​bcbs128b.​pdf (access: 21.11.2018).

Coalition for green banking: http://​coalitionforgree​ncapital.​com/​whats-a-green-bank-html/​ (access: 21.11.2018).

https://​dictionary.​cambridge.​org/​dictionary/​english/​banking.

Go Green: ICICI Bank. Retrieved from ICICI Bank: http://​www.​icicibank.​com/​go-green/​Index.​html (access: 3.11.2018).

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https://​ec.​europa.​eu/​growth/​industry/​corporate-social-responsibility_​en (access: 12.11.2018).

E. Borbely, The Relevance of Cultural Diversity in Ethical and Green Finance, [in:] W. Filho L., Pociovalisteanu D. M., A. Q. Al-Amin (ed.), Sustainable Economic Development – Green Economy and Green Growth, Springer, 2017.

https://​greenbanknetwork​.​org/​ (access: 15.11.2018 r.).

https://​greenbanknetwork​.​org/​ (access: 15.11.2018 r.).

https://​www.​ctgreenbank.​com/​ (access: 15.11.2018).

http://​greenbanknetwork​.​org/​ (access: 15.11.2018).

http://​greenbanknetwork​.​org/​ (access: 15.11.2018).

https://​greenbank.​ny.​gov/​About/​ (access: 15.11.2018).

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http://​greeninvestmentg​roup.​com/​ (access: 15.11.2018).

www.​worldbank.​org.

www.​equator-principles.​com.

Kolodko G. W. Economy of moderation real perspective? A new paradigm. PWN Warszawa 2016; broader: Kolodko G. “Wandering world”. It is not only progress required by the majority of humanity that requires change; even the maintenance of the natural environment, economy and societies in a state of relative equilibrium without certain changes is not possible. These changes must naturally take place on the path of economic growth integrated with social development; see more: Randers J., Green C., 2052. A Global Forecast for the next Forty Years, Chelsea Green Publishing, White River Junction, Vermont, 2012.

Sterman J.D., Sustaining Sustainability: Creating a Systems Science in a Fragmented Academy and Polarized World, Springer Science + Business Media, Berlin, 2012.

The concept of multi-level governance (MLG) was born in the early 1990s as part of political science and public administration theories devoted to the process of European integration. The authors of the MLG concept are Lisbeth Hooghe and Garry Marx. The concept of multi-level governance is a model that combines the transfer of competences by member states to both supranational (EU) institutions and local authorities. To put it simply, the concept of MLG is a derivative of the theory of governance and division of governments developed on the basis of federalism and confederalism.