As the Trump administration has proven by the past, skepticism is always present when it comes to climate change and the impact of human activity on it. Skepticism is also present when we talk about ESG criteria or Sustainable Finance. Around one third of the finance professionals resume the Environmental, Social and Governance criteria to a negative screening without trying to know more.
Globally and as for climate change, skepticism on Sustainable Finance is massively due to lack of knowledge and lack of clear and common definitions for its key concepts. How many people talk about Sustainable Finance without having a clear point of view on the issue?
Thanks to regulatory pressures and public opinion, Sustainable Finance becomes more and more THE new standard for the financial centers across Europe. But the lack of knowledge and common basis are still present. Everybody know what is an equity or a bond but only several have clear idea when talking about Green Bonds or Impact Investing, positive or negative screening… As usual, to fight against skepticism, Education will be an essential tool to impose the standards of Sustainable Finance.
Initiatives such as the EFPA ESG Advisor certification launched in 2021 in 13 countries across Europe by the European Financial Planning Association (EFPA) can help to close the gap between the current level of information and that required by increasing regulatory requirements for the integration of ESG criterion.
It is to go further that EFPA Luxembourg publishes this manual. To achieve our aim and build this project in a four months’ record time, we have decided to open this enterprise to a wide range of contributors from different backgrounds to portray the most universal possible landscape of what Sustainable Finance is today and what it could be tomorrow. We tried to coordinate this project giving flexibility to the authors, covering all the aspects of the matter. All our thanks are warmly addressed to all these contributors for these amazing common intellectual effort addressed to those who are interested in having useful insights on Sustainable Finance.
In the ever-evolving world of Sustainable Finance, this book offers some important readings about the actual context and the possible evolutions of issues linked to the Green Finance world, grasping market trends and evolutions, ESG criteria integration and emphasizing, for example, the essential features of a more and more sophisticated regulation.
From the history of Sustainable Finance to its actual and potential future regulatory environment, from the influence of the Corporate Social Responsibility to the integration of the ESG criterion in the investment processes, from the vehicles already available on the markets for greener portfolios to the next issues the financial centers will have to solve, this handbook offers a 360° point of view on the landscape of the Green Finance.
Hoping this four months’ journey will help the reader to have a better understanding on what is the Sustainable Finance nowadays, its framework, its aims, its challenges, I wish you a pleasant reading.