| By: |
Giovanni Ferri (LUMSA University);
Bonnie Annette Acosta |
| Abstract: |
The paper explores how ethical and sustainable oriented finance is key to
reach sustainable development by tackling environmental risk through green
finance and showing empirical evidence on the link between finance and
inequality. The theory provided puts in the right mind frame to analyze
markets, intermediaries and instruments with a sustainable lens to focus on
the benefits that have brought to sustainable development. A discussion is
presented between different intermediaries and highlights the benefits of
cooperative banks especially the close relationship of customers and bank and
the resilience it gives to Small and Medium Enterprises (SMEs) in difficult
times. Different investments strategies are discussed walking through the
evolution of Sustainable and Responsible Investing (SRI) funds and diving into
the ESG analysis to use as criteria to allocate investments based on
environmental, social and governance principles. Microfinance is introduced as
a different market that has reached the people at the bottom of the pyramid
and highlights the key role it will play to bring financial inclusion. Islamic
finance and Fintech are also discussed. Different instruments are presented to
understand the current landscape of how different investors are using
innovative products to attack social and environmental problems. Finally, five
different ways are presented on how policies can strengthen and support
sustainable development arguing that the most important is by promoting
sustainable footprint certification. |
| Keywords: |
Sustainable Finance, SDGs, Green Bonds, Social Bonds, Fintech, Human Centered Business Model. |
| JEL: |
G18 G24 G28 G38 M14 O35 P43 Q01 Q5 Q58 |
| Date: |
2019–07 |
| URL: |
http://d.repec.org/n?u=RePEc:lsa:wpaper:wpc30&r=all |