Glossary:
32. Introduction to Sustainable Finance
| Term | Definition |
|---|---|
Capital | The financial resources, such as funds and assets, available to an individual, organization, or country. |
Capital Flow | The transfer of financial resources, including investments, loans, and deposits, between different entities or sectors within an economy, reflecting the movement of funds for various purposes such as investment, consumption, or savings. |
Finance | The management of money, investments, and other financial resources. |
Green Bonds | Fixed-income financial instruments issued by governments, municipalities, corporations, or financial institutions to raise funds specifically designated for environmentally sustainable projects or initiatives, such as renewable energy, clean transportation, energy efficiency, or climate adaptation. |
Green Finance | Financial products, services, and investments that are specifically designed to support environmentally sustainable projects, businesses, or initiatives, aiming to address climate change, promote renewable energy, enhance energy efficiency, and mitigate environmental risks, while also generating financial returns and fostering long-term economic growth. |
Green Loans | Loans provided by banks, financial institutions, or other lenders to finance environmentally sustainable projects or initiatives, such as renewable energy installations, energy efficiency upgrades, green building construction, or climate adaptation measures. |
Responsible Banking | A banking approach that prioritizes the integration of environmental, social, and governance (ESG) considerations into all aspects of banking operations, decision-making, and risk management, aiming to promote sustainable development, ethical practices, and positive societal impact while ensuring financial stability and profitability. |
Sustainable | Meeting present needs without compromising the ability of future generations to meet their own needs. |
Sustainable Finance | The practice of integrating environmental, social, and governance (ESG) criteria into financial decision-making processes across all sectors of the financial industry, including banking, investment, and insurance, with the goal of promoting sustainable development, responsible investing, and positive societal impact while ensuring financial stability and long-term value creation. |
Sustainable Insurance | An insurance industry practice that integrates environmental, social, and governance (ESG) factors into its core business strategies, products, and operations, with the aim of minimizing negative impacts on the environment and society, promoting resilience and risk management, and contributing to sustainable development while ensuring long-term profitability and stability. |
