The Business Model Canvas is a strategic management tool used to visualize and describe the key elements of a business model on a single page. It provides a framework for …
Values-based banking focuses on lending to enterprises that are transitioning to a more sustainable economy. Value-based banks (VBBs) use their funds to finance projects that have a positive societal impact. …
In the risk-based approach, credit risk analysis takes into account various social and environmental elements and risks, which can influence the likelihood of default and the expected lending rate. Bank …
Why should banks consider sustainability in their operations? For example, consider how information on business ESG performance might help banks make lending or investing decisions. Based on existing literature, there …
This section will look at some of the reasons why banks, particularly commercial banks, are increasingly concerned with sustainability. One possible explanation is that the survival and expansion of banks …
In addition to accepting deposits from households, individuals, and businesses, and lending money to those seeking funds for consumption and investment, banks now offer more modern or fee-based services such …
What is social bonds? The International Capital Market Association (ICMA) defines a social bond as any type of bond instrument where the proceeds, or an equivalent amount, are exclusively allocated …
What is green bonds? The International Capital Market Association (ICMA) defines a green bond as “Any type of bond instrument where the proceeds, or an equivalent amount, will be exclusively …
The integration of ESG into bond investing has been increasing recently. Investors can screen and engage with bond issuers to determine whether the funding is allocated to sustainability projects. Finally, …
Sustainability refers to the responsible management of environmental, social, and governance (ESG) factors to meet the needs of the present without compromising the ability of future generations to meet their …
Bonds and equities (stocks) are both popular investment options, but they have different characteristics. Similarities include being investment vehicles traded in financial markets, and their relationship between risk and return. …
So impact investing is referred to as a type of investment that aims to generate both positive societal and positive financial returns. The Global Impact Investing Network points out four …
As mentioned in previous videos and textbooks related to finance, one of the functions of financial systems is to allocate resources to the best societal uses. In other words, the …
Until now, many investors have been confused about the relationship between sustainability and equity value. Many people still assume a separation between the social and business domains, believing that doing …
In financial theories, stock markets play an important societal function of steering equity finance towards productive means, specifically companies with potential and profitable projects. Thus, stock markets are one of …