Sustainable finance generally refers to the process of taking due account of environmental, social and governance (ESG) considerations when making investment decisions in the financial sector, leading to increased longer-term investments into sustainable economic activities and projects.
More specifically, environmental considerations may refer to climate change mitigation and adaptation, as well as the environment more broadly, such as the preservation of biodiversity, pollution prevention and circular economy. Social considerations may refer to issues of inequality, inclusiveness, labour relations, investment in human capital and communities, as well as human rights issues.
The governance of public and private institutions, including management structures, employee relations and executive remuneration, plays a fundamental role in ensuring the inclusion of social and environmental considerations in the decision-making process. (Overview of Sustainable Finance – EU Commission)
This sections contains reports on financing the circular economy, climate risk financial disclosure and many others. Specific folders include: Climate Risk Investing, EU Policy, Green Bonds, Impact Investing, Islamic Finance, Microfinance, NGFS (Central Banks and Supervisors Network for Greening System), TCFD (Task Force on Climate-Related Financial Disclosures) and Tools.