What is ESG
Sustainable finance is interested in sustainability, either for reasons of risk management, or for value-creation. Sustainability is represented by topics, for example:
Environment
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Climate change
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Energy transition
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Water
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Air
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Biodiversity
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Product security
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Land use
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Plastic
Social
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Human Rights
(for example, children and slaves) -
Workers’ rights
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Labour relation
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Social Acceptability
(for example, First Nations)
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Health
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Cybersecurity
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Access and affordability of products and services
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Consumers’ rights
Governance
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Board of directors
(composition, independance, etc..) -
Executive Compensation
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Succession planning
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Shareholder’s rights
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Lobbying
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Business Ethics
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Political contributions
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Fiscal strategy
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Accounting process and audit
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Ownership structure
Sustainable finance wishes to:
Find out if these subjects represent issues for organizations targeted by investment and / or funding. If so, then it is a question of how these organizations mitigate these risks;
Draw inspiration from these topics to identify opportunities for value creation and innovation.