Sustainable finance

Sustainable finance generally refers to the process of taking due account of environmental, social and governance considerations when making investment decisions in the financial sector, leading to increased longer-term investments into sustainable economic activities and projects.

• Environmental considerations refer to climate change mitigation and adaptation, as well as the environment more broadly, such as preserving biodiversity, preventing pollution and promoting the circular economy.
• Social considerations refer to issues of inequality, inclusiveness, labour relations, investment in human capital and communities, and 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.

SEE ALSO

• Adaptation to climate change
• Biodiversity
• Circular economy
• Climate action
• Corporate social responsibility (CSR)
• EU environmental policy
• Equal opportunities
• Human rights
• Mitigation of climate change
• Sustainable development goals (SDG)
• Assessing environmentally sustainable investments (summary)
• Ensuring accuracy and integrity of benchmarks (summary)
• European green deal (summary)
• Sustainable finance (European Commission).