week 3 Flashcards
(13 cards)
what does ESG stand for
-environmental
-social
-governane
what factors influence environmental sustainability
- pollution
-climate change; caused by ghg released into atmosphere because of humans - loss of biodiversity
-overexploitation of natural resources
what are the key goals for environmental sustainability
- reducing ghg emissions
- increasing production from renewable sources
- regulations to converse biodiversity
- raising awareness
- promoting circular economy
what is social sustainability
a focus on the well being of people and communities
what are factors influencing social sustainability
-over come poverty
- lack of access to resource
-discrimination and social exclusion
what are the key goals for social sustainability
-promotion to respect basic human rights
-adoption of practices that value and include people of diverse backgrounds
-creation of safer living environments
what are factors influencing governance sustainability
-business ethics
-transparency
-corporate leadership
-anti corruption
what are the opportunities and risk for the financial system in delivery sdgs (sustainable development goals)
- emerging economies: account for more than 50% of the global economy = opportunity for growth
- financial inclusion= people have access to financial services
-risk management: ignoring sdg problems creates financial risk
-negative yields: could provide an attractive alternative when bonds are negative
what is the challenge with SDG
mobilizing capital: enough money in the world but funds arent flowing to achieve SDGs
what is the role of the government
-set ambitious climate targets
-create policies and regulations
-invest in climate research/infrastructure
-driven by binding commitment
what is the role of financial institutions
-lend: finance sustainable projects
-invest in sustainble companies
-underwrite: offer insurance products for climate related risks
-manage climate risk
-reduce emissions
what is the role of investors
- demand transparency
-invest in sustainable funds
-engage with companies: advocate for stronger climate action
who determines and predicts where sustainability goes
investors, they are the ones funding these projects