Sustainable finance could be defined as practice of creating not only economic value through different financial models sustainable over time, but also social one as well as environmental.
I adore the motto of UNEP Financial Initiative ”Changing finance, financing change” reflecting concept of sustainable world economy supported by sustainable financial system. UNEP FI was established in 1992 as a platform associating the United Nations and global financial sector. This partnership arose due to the fact of existing connections among finance on one side and Environmental, Social and Governance (ESG) challenges on the other, as well as the role financial institutions could play for more sustainable world. Its members, including banking, insurance and investment sectors, recognize sustainability as a part of collective responsibility supporting approaches which anticipate and prevent potential negative impacts on society as well as on environment.
Socialy Responsable Investments (SRI), as sustainable finance’s tool, could therefore prevent negative externalities preserving our existence in the long run. Hence, WE as citizens have cruical role since by changing our behaviour (‘rewarding’ those who share our values vs. ‘avoiding’ those who do not) WE could change the flow of money!
Written by Ivana Letic