Sustainable Finance is understood as financial market actors taking sustainability factors into account in their decision-making processes. These include among others:
- A comprehensive understanding of sustainability related risks and opportunities in financing and its translation into risk management systems;
- Increased transparency to allow a fact-based assessment of sustainability and impact of a funded activity;
- A long-term decision-making horizon;
- Access to a broad choice of sustainable investment products for private and institutional investors.
More reading available in the Sustainable Finance-Committee of the German Federal Government Interim Report: The Significance Of Sustainable Finance To The Great TransformationYou can find this fragment in the following contexts: