Ethical & Green finance
finance as a sustainable development tool
Ethics and green finance are two concepts that are increasingly being integrated into the world of finance. The financial industry is facing challenges in terms of sustainability and ethical considerations, and green finance is emerging as a new way of financing that takes into account environmental and social concerns. Ethic and green finance, therefore, represent a new paradigm shift in the financial sector.
Firstly, ethical finance is about aligning financial decision-making with social and environmental concerns. It is a conscious effort to promote sustainability and ethical considerations, such as fair trade, social justice, and respect for the environment. The goal is to ensure that investments and financial transactions do not contribute to social or environmental harm, but rather promote positive change. Ethical finance has been gaining traction in recent years, as investors have become increasingly concerned about the social and environmental impact of their investments.
Secondly, green finance is about financing projects that have a positive impact on the environment. It includes investments in renewable energy, sustainable agriculture, and energy-efficient buildings, among others. The goal of green finance is to channel capital towards projects that promote environmental sustainability, while at the same time generating financial returns. Green finance is gaining popularity as a way to address climate change and other environmental challenges.
Thirdly, ethical and green finance are interconnected. Ethical finance considers not only the financial returns of an investment, but also the social and environmental impact. Green finance, on the other hand, focuses specifically on the environmental impact of an investment. Together, ethical and green finance create a new way of financing that takes into account the long-term impact of financial decisions.
Fourthly, there are various instruments available to promote ethical and green finance. One of them is the green bond, which is a type of bond issued specifically to finance environmentally sustainable projects. Other instrument like the socially responsible investment are under development. The goal of the workshop will be to assess those existing tools and to find ways to harmonized them.