Published On: 06/02/2022Categories: Banking, Financial markets, Sustainability

Financial markets reward short-term results. For this reason, many companies, financial or not, still work under pressure to achieve good results in the short term rather than imposing longer-term objectives such as those related to environmental and social sustainability.

This is changing, as society is increasingly aware that the environment and economic development are highly correlated.

An economic system cannot exist without an ecological system.

STRATEGIC FOCUS – GREEN BONDS

The ECB believes that institutions should take a strategic, forward-looking and comprehensive approach to climate-related and environmental risks.

In view of the growing importance of climate change for the economy and the growing evidence of its financial impact on banks, the ECB stress test in 2022 is planned to target climate-related risks.

The European Green Bond Standard (EUGBS) is a voluntary standard to help scale and elevate the environmental ambitions of the green bond market.

SOCIALLY RESPONSIBLE INVESTMENT FUNDS

Socially responsible investment funds (ISR) are collective investment institutions that choose the assets that make up their portfolio based on environmental, social and corporate governance criteria.

The Socially Responsible Investment (ISR) funds are managed including extra-financial criteria in the decisions.

This is one of the fastest growing areas in the asset management industry.

SUSTAINABLE BANKING

INTERNAL PERSPECTIVE:

We refer to the economic, social and good governance factors that must be implemented in the daily management of any company.

EXTERNAL PERSPECTIVE:

This is a broader concept that includes the social and environmental impact of banks allocating financial resources.

To know more:

BOOK: Bank Management. Key Factors in a competitive environment. López Pascual, Joaquín. Available for free consultation at: https://www.joaquinlopezpascual.com/libro-gestion-bancaria.

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