Our current economic models were developed in the age of resource abundance when natural resources were plentiful and climate change and environmental disasters had not even begun to be considered. Environmental concerns were not factored into these models, only labour and capital. Likewise, financial theory did not account for natural resources and the environment beyond their near-term cash flows. The risk of fatal depletion was ignored. These models are still widely used but are no longer tenable today.
Humanity’s increase use of fossil fuels, deforestation and intensive agriculture has increased greenhouse gas emissions which science says has contributed to climate change. Furthermore, human rights to basic necessities are being overlooked due to mass production in a competitive economy system which has led to long work hours, underpayment, poor living conditions and child labour.
Today, sustainability has become an integral part of government policies and regulatory changes to ensure the planet is livable for current and future generation. Sustainable development and financing have become an integrated concept within three aspects – Environmental, Social and Governance (ESG) risks.
How can finance contribute to sustainable development? The main task of the financial system is to allocate funding to its most productive use. Finance can play a leading role in allocating investment to sustainable corporates and projects and thus accelerate the transition to a low-carbon and more sustainable economy.
This programme is about sustainable finance. It looks at how finance (investment and lending), interacts with environment, economics, social and governance issues.
In this programme, you will learn about:
- Various U.N. Sustainable Development Goals
- How environment, social and governance factors should not be regarded as externalities but incorporated into organisational goals and strategies
- Sustainable banking and asset management
- Effective engagement, sustainable scenario analysis and long-term value creation