Top

Published in:

2022 | OriginalPaper | Chapter

2. What Puts the Sustainable into Sustainable Finance

Author : Molly Scott Cato

Published in: Sustainable Finance

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

This chapter offers a basic introduction to the existing financial system: how does capital flow through the financial system and why does this create negative environmental and climate impacts? It explores who are the different actors and how they are motivated and where are the relevant points of potential change, with a special focus on the insurance industry. Market trends and how to interpret them are explained, followed by consideration of what we mean by a green bond and an account of the green bond market since its inception. Finally, we consider how to shift large-scale investment towards sustainable sectors by a combination of socially responsible investment and pro-sustainability investment indices.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 390 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Maschinenbau + Werkstoffe

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

previous chapter Why Sustainable Finance? Why Now?

next chapter The Chequered History of Climate Finance

Valdez, Stephen and Molyneux, Philip (2016), An Introduction to Global Financial Markets (Palgrave Macmillan).

Valdez, Stephen and Molyneux, Philip (2016), An Introduction to Global Financial Markets (Palgrave Macmillan), p. 171.

Carney, Mark (2015), ‘Breaking the Tragedy of the Horizon—Climate Change and Financial Stability’, Speech at Lloyd’s of London, London, 29 September 2015.

Frame, D. J., Wehner, M. F., Noy, I., et al. (2020), ‘The Economic Costs of Hurricane Harvey Attributable to Climate Change’, Climatic Change 160: 271–281. https://doi.org/10.1007/s10584-020-02692-8.

https://www.eea.europa.eu/data-and-maps/indicators/direct-losses-from-weather-disasters-4/assessment.

https://www.eea.europa.eu/data-and-maps/indicators/direct-losses-from-weather-disasters-3/assessment-2.

Strobl, E. (2019), ‘The Impact of Typhoons on Economic Activity in the Philippines: Evidence from Nightlight Intensity’, Asian Development Bank Economics Working Paper Series, No. 589. https://www.adb.org/sites/default/files/publication/515536/ewp-589-impact-typhoons-philippines.pdf.

https://www.bbc.co.uk/bitesize/guides/z9whg82/revision/4.

Frame, D., Rosier, S., Carey-Smith, T., Harrington, L., Dean, S., and Noy, I. (2018), Estimating Financial Costs of Climate Change in New Zealand (Wellington: NZ Treasury). https://www.treasury.govt.nz/sites/default/files/2018-08/LSF-estimating-financial-cost-of-climate-change-in-nz.pdf.

UNEP (2021), ‘Insuring the Climate Transition: Enhancing the Insurance Industry’s Assessment of Climate Change Futures’. https://www.unepfi.org/psi/wp-content/uploads/2021/01/PSI-TCFD-final-report.pdf.

‘Climate Change and P&C Insurance: The Threat and Opportunity’, McKinsey (2020). https://www.mckinsey.com/industries/financial-services/our-insights/climate-change-and-p-and-c-insurance-the-threat-and-opportunity#.

ICMA, ‘Green Bond Principles: Voluntary Process Guidelines for Issuing Green Bonds’, (2018). https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/Green-Bonds-Principles-June-2018-270520.pdf.

Climate Bonds Initiative: https://www.climatebonds.net/market/explaining-green-bonds.

https://www.greenbiz.com/article/green-bonds-are-beating-all-expectations-post-pandemic-recovery.

‘Investors Probe ESG Credentials of Bond Sellers on “Greenwashing” Fear’, FT, 28 October 2020. https://www.ft.com/content/1bcbad16-f69e-47db-82fa-0419d674bb53.

Sangiorgi, I. and Schopohl, L. (2021), ‘Why Do Institutional Investors Buy Green Bonds: Evidence from a Survey of European Asset Managers’, International Review of Financial Analysis, 75 (May), 101738. https://doi.org/10.1016/j.irfa.2021.101738.

Flammer, C. (2021), ‘Corporate Green Bonds’, Journal of Financial Economics (available online, January). https://doi.org/10.1016/j.jfineco.2021.01.010.

Martini, A. (2021), ‘Socially Responsible Investing: From the Ethical Origins to the Sustainable Development Framework of the European Union’, Environ Dev Sustain. https://doi.org/10.1007/s10668-021-01375-3.

Masters Thesis at the University of Vaasa, Finland: https://osuva.uwasa.fi/handle/10024/12535.

Omura, A., Roca, E., and Nakai, M. (2020), ‘Does Responsible Investing Pay During Economic Downturns: Evidence from the COVID-19 Pandemic’, Finance Research Letters, 101914, 31 December. https://doi.org/10.1016/j.frl.2020.101914.

Li, C., Liepei, Zhang, Jun, Huang, Helu, X., and Zhongbao, Z. (2021), ‘Social Responsibility Portfolio Optimization Incorporating ESG Criteria’, Journal of Management Science and Engineering, 6:1, 75–85.

Title: What Puts the Sustainable into Sustainable Finance
Author: Molly Scott Cato
Publisher: Springer International Publishing
Book: Sustainable Finance
Print ISBN: 978-3-030-91577-3

Electronic ISBN: 978-3-030-91578-0

Copyright Year: 2022
DOI: https://doi.org/10.1007/978-3-030-91578-0_2

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Technik"

Springer Professional "Wirtschaft"