Chartered

Sustainable
Finance Manager
(CSFM)

Stephen Snider
CSFM: Principles of Financing Sustainability
Let’s explore the foundations of sustainability.
These key concepts will improve your work.

Agenda:
1. Key Ideas of Sustainable Finance
2. History of the Industry
3. Net Zero
4. Going Beyond Carbon
5. Business Risks & Opportunities
6. Performance and Growth
7. Additional Resources

Interview: Chai Locker, Institute for Social Banking

Activity: Understanding the SDGs and Finance
Case Study: Unilever - A Leader in Sustainability
Key Ideas of
Sustainable Finance
Welcome to Module 2

We’re setting the building blocks on

which you’ll build your skillset.

Explore the resources and concepts

mentioned here. There is a lot so
start small and explore further.

3
 Key Ideas of Sustainable Finance
Evolution of What’s Important
EHS = Environment, Health, and Safety
CSR =Corporate Social Responsibility
SRI = Sustainable Responsible Investing or Socially Responsible Investing
ESG = Environmental, Social, and Governance

Many other flavors and different focuses depending on the group

● Social Finance ● Venture Philanthropy
● Green Banking ● Microfinance
● Blended Finance ● Stakeholder Capitalism
● Patient Capital ● Thematic Investing
● Impact Investing ● Climate Finance

The UN Sustainable Development Goals as a cross cutting,

multi-sectoral approach to understanding the different
layers of how our complex planet works.

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 Key Ideas of Sustainable Finance
Green and Social Investing
Finance or Investment?
Investment is a subset of Finance. Finance refers to whole range of activities in financial system. Investment is an
asset purchased to provide income in the future or will later be sold for a profit.

Green Finance (sometimes also Environmental Finance) is focused on environmental sustainability specifically,
although the boundaries between social and environmental sustainability are very blurred, e.g. SDGs.

Responsible Investment is an approach to investing that aims to incorporate ESG factors into investment decisions,
to better manage risk and generate sustainable, long-term returns (PRI, 2018) but no specific issues. .

Socially Responsible Investment (SRI) (sometimes Ethical Investment) introduces ethical preferences to exclude
certain companies and sectors (e.g. arms, tobacco, fossil fuel etc) - this has a lot of history

Environmental, Social and Governance (ESG) are a set of standards and criteria for a company’s operations that
investors use to screen potential investments. (Investopedia, 2018)

Impact Investing actively seeks to make a positive impact through investing. Often see themselves as a very distinct
community because of the focus on positive impact, community development, and engagement.

Climate Finance is focused on climate mitigation and climate adaptation. It is often used to refer to North-South flows
and is sometimes in the form of aid or funding for specific climate related projects.

Sustainable finance brings all these terms together - green and social
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 Key Ideas of Sustainable Finance
Different Social and Environmental Agendas

Conservation Finance: Regenerative Finance:

- Stewardship - Builds community wealth and shifts economic power
- Protection and restoration of nature - Democratizes workplace and drives social equity
- Focuses on environmental services - Advances regenerative ecological economics
- Includes forestry, agriculture, water, oceans and cities - Re-localizes primary production and consumption
- Annual funding across the globe is estimated to be - Strengthens the Public Sector
approximately $50 billion - Retains culture and tradition
- Provided primarily by philanthropic, multilateral, and - Restores indigenous sovereignty and promotes
governmental sources decolonization

Conservation Finance Network Principles of Regenerative Economics

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History of the Industry
Sustainable Finance is not a new story.

The industry and principles have been evolving

over time.

New developments are rapidly changing the

industry and facilitating global coordination and
cooperation.

Sustainable finance has always

been part of finance.

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 History of the Industry
History
Understand that Sustainable FInance has been evolving over decades and recent acceleration is rooted in the foundations of religious and
social movements that recognized that finance and money have power to shape the world in which we live. It is helpful to see how different
groups and networks have advocated for different directions, to understand the formation of key stakeholders, and to see how the acronyms
we use continue to multiply and to change.

The evolution has seen it move from being mostly religious investing based on values like Catholic, Islamic Tradition, or the Quakers, to used for
social issues. The collapse of the South African Apartheid was in part due to the divestment movement many people and institutions agreed to
pressure. Consider the recent divestment from Russia for the Ukrainian invasion. And consider how the industry continues to respond to major
issues like the Me Too Movement, the Amazon Fires and Deforestation, to concern with fossil fuels and nuclear energy.

We’ve seen the explosion of financial analysis and modern finance theory includes • Modern portfolio theory (MPT) – 1950s • Capital Asset
Pricing Model (CAPM) – 1960s • ABSs – 1970s • Black–Scholes (options pricing) – 1970s • Black–Litterman model (asset allocation) – 1992 •
Bloomberg Terminal – 1980s • Passive investment and ETFs – 1990s. All of this possible:
- regulation - increase need, technical capacities, & trust
- consolidation - major centralization of location and products
- standardization - ISO (standards), IFRS (fin.), BIS (central banks), OICV (securities)

There are some helpful articles you can check out and useful videos to learn more
- Morningstar’s History of Sustainable Investing

8
History of Finance, Swiss Learning Exchange Sustainable Banking, Weber 2016
 History of the Industry
Key Dates
1700s - John Wesley's novel idea
Methodist movement encouraged conscious investment practice urging followers to refrain from investments in 'sin stocks' such as weapons and tobacco.

1971 - Pax World Fund launched

To avoid supporting companies contributing to the Vietnam War, the first sustainable mutual fund is launched.

1988 - Institutions Created

The Intergovernmental Panel on Climate Change (IPCC) and the United Nations Environment Programme (UNEP) are established.

1995 - Beril COP

The first Conference of the Parties (COP) was held by the United Nations to gather and advance the global agenda for sustainability.

Faith-based 1997 - Agreements in Japan

Investing The Kyoto Protocol, an international treaty committing to reduce greenhouse gas emissions, is signed by 192 states.

2006 - Principles in Place

The United Nations' Principles for Responsible Investment (PRI) is launched to encourage further development of sustainable investing.

2007 - Impact Investing

The term 'impact investing' is coined by the Rockefeller Foundation. Putting a name to investments that intend to generate both a financial return and social impact.

2009 - A Network is Born

The Global Impact Investing Network (GIIN) is created to promote investing with the aim of creating a social benefit.
Impact
Investing 2015 - Frameworks in France
At COP 21 the Paris Agreement is signed by 196 parties agreeing to meet certain future climate goals.

2020 - The Largest Asset Manager Acts

Larry Fink wrote in his annual letter that companies generating more than 25% of revenues from coal production will be removed from their active portfolios. Priorities
stakeholder finance.

2021 and COP 26 in Glasgow

Study Shows Sustainable Finance $ is Significant - GSIA found that 35.9% of total assets under management were sustainable as of 2020.

CSR->SRI-> ESG 2022 and beyond - You Can Make an Impact

The industry is still growing and getting more attention everyday. Could you be a key part of this exciting future?

2030 - On Target?
When action must happen by with emissions halved. Will we rise to the occasion?

Net Zero 2050 - Carbon Neutral?

Where our many of our netzero goals are currently set for. Look out! Will we win the race?
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 History of the Industry
Show of Hands

Have you heard of these before?

● Paris Agreement - What historic agreement was signed in 2015 to

provide a framework for every nation to work together to address the
problem of climate change by setting carbon emission targets and
limiting greenhouse gasses. It covers the areas of climate change
mitigation, adaptation, and finance.

● United Nations Framework Convention on Climate Change (UNFCCC)

● COP - Conference of the Parties

● Loss and Damages Fund

10
Time for an Activity

Learn more about what a sustainable future looks like:

- Use the SDGs to understand sustainability and what needs to
be achieved. How do we invest for sustainability?

Follow these instructions:

- Module 2 Activity
 Net Zero
DISCUSSION

How do we know Climate Change is happening? What do you know?

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Net Zero
This is a goal that we need to achieve
to avoid the worst impacts of climate
change. A low carbon economy will
protect people and planet.

13

13
 Net Zero
What is it?
To limit global warming to 1.5°C, the IPCC (Intergovernmental Panel on Climate Change)
stresses that the world needs to halve CO2 emissions by around 2030 and reach Net Zero
CO2 emissions by mid-century.

The IPCC emphasizes the need for deep reductions in non-CO2 emissions across the
economy to achieve this limit.

The IPCC defines net-zero as that point when “anthropogenic emissions of greenhouse gases
to the atmosphere are balanced by anthropogenic removals over a specified period”. The
Paris Agreement sets out the need to achieve this balance by the second half of this century

The concept of net-zero has risen in prominence ever since, as countries, cities, companies
and others are increasingly committing to reaching this ambitious goal. As of July 2020, a
quarter of global CO2 emissions and more than half of the global economy were covered by
net-zero commitments, according to the Race to Zero campaign led by the High-Level
Climate Action Champions in the run up to COP 26.

Foundations for Science-Based Net-Zero Target Setting in the Corporate Sector

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 Net Zero

Global Warming of 1.5°C is still achievable

The IPCC report 2022 highlights that keeping to 1.5°C is still achievable, but we need to act now and this requires policy
makers, organisations and every citizen to achieve dramatic reductions in Greenhouse Gas (GHG) emissions.

Beyond CO2 there are other emissions that also cause climate change. These include and these all occur naturally
● Methane (CH4)
● Water Vapour (H2o)
● Nitrous Oxide (N2O)

Others emissions do not occur naturally and are being added to the atmosphere by human activity.
● Hydrofluorocarbons (HFCs)
● Perfluorocarbons (PFCs)
● Sulphur hexafluoride (SF6)

The IPCC is an intergovernmental body of the United Nations and was created to provide policymakers with regular
scientific assessments on climate change, its implications and potential future risks, as well as to put forward
adaptation and mitigation options.

The 2022 IPCC report summarises our current understanding of the interdependencies between climate, ecosystems,
biodiversity and human societies, and assesses the risks and impacts of climate change, adaptation, and resilience.

The IPCC reports are the best place to go for clear explanations of
climate change impacts and how changes are possible.
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 Net Zero

POLL

Which of these is not a greenhouse gas (GHG) emission?

A. Methane (CH4)
B. Oxygen (O)
C. Hydrofluorocarbons (HFCs)
D. Nitrous Oxide (N2O)

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 Net Zero
The Net Zero Bathtub

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Net Zero on Campus Interactive, 2022
 Net Zero
Who’s Pledging
Earth Index
Check out the following rankings and ratings to see who’s acting and making changes:
The Earth Index 2022 top 100 companies taking action but we’re still not on target for most
sectors and industries. See more here.

Morningstar Best Sustainable Companies

Another help resource is Morningstar’s Best Sustainable Companies to Own list for 2023.
This is the 50 firms that stand out from the competition (wide economic moats) and have
low ESG risk scores based on their exposure to and management of sustainability issues.
Ranked by ESG risk score, the top companies are Keysight Technologies, Accenture,
Moody's, ASML Holding, and Experian. How are these companies making changes to their
business models to address climate change?

Net Zero Tracker

Provide data detailed data across the globe and importantly for cities. Follow their results
for companies - Company Table.

NOTE: While all ranking systems and methodologies do have their criticisms it is useful to
review the rationale, see where you disagree, and notice what stands out as useful.
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 Net Zero
Are we doing enough?
While many see Net Zero and Carbon Neutral as buzzwords or
greenwashing, limiting emissions is the ultimate goal. Organizations should
set meaningful and actionable targets and really mean it when pledging to
be Net Zero.

Some criticisms exist. The validation and accountability with Net Zero is yet
to be seen. Many organizations have set unrealistic and unachievable
goals. Private companies are not jumping on the bandwagon. Interim
targets that accelerate to meet the 2030 goals are lacking.
The Observer, R. McKie, Aug. 2021

We need Net Zero. But we need a working Net Zero.

The Economist, Apr. 2022

Net Zero Tracker
 Net Zero
IPCC Key Findings
The IPCC's report is over 8,000 pages long. The World Resources Institute made 10 key
takeaways of the IPCC warming to humanity

1. Human-induced global warming of 1.1°C has already caused major changes to the Earth.

2. Climate impacts on people and ecosystems are more widespread and severe than
expected, and future risks will escalate rapidly with every fraction of a degree of warming.

3. Adaptation measures can effectively build resilience, but more finance is needed to scale.

4. Some climate impacts are already so severe they cannot be adapted to and are very costly.

5. Global GHG emissions are expected to peak before 2025 in 1.5°C-aligned pathways.

6. The world must rapidly shift away from burning fossil fuels — the number one cause.

7. We need urgent, systemwide transformations to secure a net-zero, climate-resilient future.

8. Carbon removal and natural solutions are essential to limit global temperature rise to 1.5°C.

9. Climate finance for both mitigation and adaptation must increase dramatically this decade.

10.Climate change — as well as our collective efforts to adapt to and mitigate it — will
exacerbate inequality should we fail to ensure a just transition.
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 Net Zero

IPCC shows this is real

We cannot deny the changes all around us

Human activity is leading these changes

Solutions are available to us but political,

regulatory, and organizational inaction is
holding us back

Summarizing the entire IPCC report in 5

21
minutes featuring @ClimateAdam
 Net Zero
Short-Term vs. Long-Term
The difference between 1.5°C and 2°C or 3.6°C is big

Near Term (2022-2040)

- Expected that global warming will reach 1.5°C in the
near-term and climate hazards will increase like
heat waves, forest fires, increased storm activity,
and more severe droughts.
- Communities around the world face extreme
weather and higher risks more than others

Long Term (2041-2100)

- Sea level rises could dramatically accelerate and
millions of people forced to migrate with other
major changes in weather patterns are possible
- Magnitude and the rate of climate change
depends on what we do now and what adaptation
actions and investments are made

Good news is that action & solutions can be

implemented to limit global warming to 1.5°C. We can
prevent the worst damages and we prepare to mitigate Source: Climate Council Australia, 2018
and adapt to the impacts of climate change.
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Time for a Case Study

Learn with Unilever:

- An example as a B-Corp, Responsible Investor,
and advocate for sustainability

Resources for the case study:

- Module 2 Case Materials
- Additional Materials
- Case Study
- ESG Reporting Analysis
Going Beyond Carbon
The Paris Agreement as the most important step
forward for climate change.

Recognition that we need to work together for

this and sustainability.

Living within our means and recognizing that

climate change is just one of the issues we face.

Sustainable Finance is the path

forward for a thriving planet.

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 Going Beyond Carbon
The Paris Agreement
A key global agreement on climate change was the 2016 Paris Climate Agreement at the
United Nations’ Conference of the Parties (COP)
- Agreement to reduce our greenhouse gas emissions
- Keep the global temperature rise below 1.5°C, compared to the pre-industrial levels
- Work together to avoid the catastrophic impacts of climate change
- Meet regularly and increase commitments and speed up action over time

Almost every country in the world has signed and ratified the agreement and in 2021
President Biden had the United States rejoin after President Trump withdrew the USA

Will it be successful? Only if organizations support the goals

Enhancing NDCs to Achieve the Paris Agreement - WRI, 2020 The Paris Climate Agreement Summary - Environa, 2021
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 Going Beyond Carbon
Global Associations and Partnerships
Sustainable investing is a large & growing investment trend. Almost one third of assets under management in the U.S.
are now categorized as sustainable investing. Expect to see continued evolution in ESG strategies, investment products,
and reporting standards.

Two ESG investing themes—climate change and racial equity—came sharply into focus in 2020 in shaping ESG
investing, and are expected to continue to play a prominent role.

Companies will increasingly be held accountable for ESG risks and will be expected to disclose them in more detail as
consumers, NGOs, employees, and investors push industry towards “stakeholder capitalism.” Finance managers need
to understand how to identify, measure, and evaluate ESG risk exposure.

UN Global Compact
Check out the UN Global Compact Accenture CEO
Study on ESG that surveyed 1,000 CEOs across 103
countries and 27 industries:
● 93% see ESG as important to the future of their
business
We're shaping a sustainable future.
● 78% see ESG as an opportunity for growth and
You need to be part of it. Long-term
innovation business success matters and so do
● 80% see ESG as an area for gaining a your workers, communities, and the
competitive advantage in their industry planet. The UN Global Compact
● 84% believe their business should lead efforts to helps you do business right for all.
define and deliver ESG goal - UN Global Compact

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 Going Beyond Carbon
Recognition of Many Issues
May different projects and roadmaps to get us to alignment with the Paris Agreement and the fundamental
transformation within organizations that need to happen in the next 10, 20, 30 years to meet 2050 Net Zero and keep
average global warming below the 1.5 degrees. UN SDGs and others advocate that carbon is just one piece.

Living within the planetary boundaries. How do

individual organizations contribute to each of these
different areas. Remember that social inclusion,
mobility, and other issues lay on top of the planetary
boundaries for our society. Learn more about
Doughnut Economics

>Alignment of company reporting and business model

>National financing and development planning
>Ecosystem services and environmental economics

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A healthy economy should be… | Kate Raworth Doughnut Economics + Planetary Boundaries
 Going Beyond Carbon
Consequences
Remember there are many different perspectives to this - we face many complex, major, and systemic issues.

The challenges we face include pandemics, recession, climate change,

and after all these waves we barely discuss the mass extinction of
biodiversity. What wave we focus on matters. Need to build sustainability
even if our castle is made of sand.

Are you and your organization resilient?

Check out the UK’s Global Resilience Index. If we are to advance
adaptation and align financial flows with climate resilient development,
we need a shared understanding of the risks across society.

Banking sector indirectly is dependent on the ecosystem services of the

planet. We must see adoption as an investment opportunity.

The Financial Market Signals

- ESG factors are being tied to a company’s long-term
performance
- Investors are integrating sustainability insights and data into
their traditional investment process.
- Move towards universal climate-related disclosure
requirements.
- The U.S. Treasury Department is working with the SEC to create
new climate-related disclosure requirements
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Time for an Interview

Conversation with:
Chai Locher, Institute of Social Banking

- What is values based banking and where will it help us?

- How to get involved? What role do you play?
- Resources to fix the financial system

Additional resources from the interview:

- Module 2 Interview
Business Risks &
Opportunities
ESG and Sustainability pose a decision point for
companies to address their impacts.

Organizations facing large ESG risks and/or fail to

disclose or manage their ESG impacts are likely
to face several challenges.

On the other hand, organizations that work with

and support stand to benefit from flows of capital
and business advantages.

ESG improve Risk Management and

Sustainability provide business
opportunities.

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 Business Risks & Opportunities
Risks and Implications
Access to Capital - exposure to specific ESG issues will mean a flight of capital. Look at the pressure put on investors
to divest from Russia over the invasion of Ukraine. According to Russell Investments‘ annual asset manager survey,
“the integration of environmental, social and governance (ESG) is now universally recognized as a significant
consideration when analyzing long-term investment opportunities.”

Stranded Assets - because of the transition to renewable energy, oil, coal, and other nonrenewable materials may be
written off and devalued plus many investors are actively divesting from fossil fuels. There is pressure for managers
holding these investments to change. Example NY State Pension divesting.

Exposure to Liabilities - investors are requiring disclosure of ESG risks to identify potential liabilities that their
investments face. Example of where investors forcing funds to consider environmental issues in observance of
climate change and other impacts. Fund forced to act.

Reputation Risk - the public is becoming more aware of social and environmental issues. Public opinion and the
potential risk of controversy has led to Governance improvements around #MeToo issues and many banks have
pledged to not drill in the Arctic after pressure from NGOs.

Talent attraction and retention - ESG scrutiny can shine a light on issues like workplace safety, employee health and
wellness, diversity and inclusion, executive compensation, business ethics, and corruption. In additional there is a gold
rush for ESG Investing skills with competence greenwashing.

31
ESG Risk Management: Key Aspects You Need To Know
 Business Risks & Opportunities
Opportunities and Market Growth
Flow of Money - The attraction of money to ESG and Sustainability is real and continues to accelerate. With a coming
generational shift in savings, millennials have much sway in what comes next for the economy. A Morgan Stanley
survey reports 95% of millennials are interested in sustainable investing. In 2020 alone, 53 new ESG funds opened in
the U.S., bringing the number to 367. In the USA, since the 1982 Calvert Social Investment Fund, many new products
have been added like the Hartford Climate Opportunities Fund, Invesco WilderHill Clean Energy ETF, and the BNP
Paribas Easy ECPI Global ESG Blue Economy ETF.

Data and Analytics - the business of ESG has explored. Ratings, data collection, and screening have become big
business with major vendors like MSCI and Morningstar. Or aggregators like Bloomberg, Refinitiv, and Factset. There
have also been advances in using artificial intelligence to review company reports, and collect ESG data.

Reporting and Assurance - the major consulting firms have all offered services to facilitate business needs. Large
firms have developed their own frameworks. And global associations are advocating for common approaches like
the Global Reporting Initiative, TCFD, Sustainability Accounting Standards Board (SASB), and CDP.

Energy Transition - the financing and investment in renewable energy has been an investment boon with major
asset managers and banks directing financing to growing industries. Some sectors that are expected to bloom are
related to climate transition, including clean energy, sustainable transportation, and sustainable food and agriculture.

Sustainable Bonds - green bonds are fixed-income financial instruments that have positive environmental benefits
and allocate proceeds to climate mitigation or adaptation projects. Similar products like transition bonds,
sustainability linked bonds, and blue bonds provide unique financing opportunities. More to discuss in later modules.

Impact Investing - This is a range of strategies aimed at generating social and environmental “returns” in addition to
financial objectives (which can range from philanthropic to commercial rates of return). The philanthropy, foundation,
and institutional investment communities are increasingly interested in and creative about devising impact investing
products that are growing in popularity.
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 Business Risks & Opportunities
POLL
From a risk standpoint, climate change will impact business most in terms of:

A. Physical Risk
B. Transition Risk
C. Legal Risk

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Performance and Growth
Sustainable finance is here to stay.

Performance and popularity of the industry

continues to grow and prove itself.

We’ll explore the path forward and what the

current state of the market is.

34
 Performance and Growth
Sustainable finance continues to grow
From the flow of funds, number of products, growth in research, profitable “Over the next 10 years, Goldman
investments, or measurable impact, the industry garners attention globally. Sachs will target $750bn of financing,
In 2015, Friede et al. found that 90% of studies on ESG had a non-negative investing and advisory activity to nine
performance of funds. areas that focus on climate transition
and inclusive growth.” -
Others question the link to performance but make explicit the connection to David Solomon, CEO, Goldman Sachs
the cost of capital and the benefits- Kölbel and Busch, 2017. Financial Times, Dec. 15, 2019

In 2020, 14 of 17 ESG-focused ETFs outperformed the S&P 500 from January to

May. 23 new ESG funds launched in 2020, providing investors with more
sustainable choices and indirectly encouraging companies to reevaluate
their ESG scores to be included. (HBS)

Major Flows to the Market Hotly Researched and Tested Area

 Performance and Growth
Contribution to the bottom line
In many ways, ESG and sustainability improve the business from cost savings, risk reduction,
increased demand, and demonstrable impact. Recent results indicate that: “The one thing that is very clear in this
● Lower ESG risk firms had a lower average P/E ratio (Sustainalytics) Covid world ... [is that] stakeholder
● $12 trillion market in 2019, or about $1 of every $4 investing in SRI, $1 in $3 now (US SIF) capitalism is only going to become
● BlackRock predicts ESG funds to rise >$400 billion over the next ten years more and more important.”
● Serafeim sees orgs that focus on material ESG factors outperform the market
- Larry Fink, CEO, BlackRock
● Morningstar found that 75% of sustainable funds survived, compared to only 46% otherwise
● Less exposure to ESG risks results in significantly outperformance Xiong 2021 CNBC, July 17, 2020
● A firm outperforms when it does not focus on revenue alone, but underpins ESG criteria (HBR)

Mark Carney, Bank of England, suggests that in theory, the more that society values the transition
to Net Zero, the more valuable companies that are part of the solution will be, because of greater
demand for their products as well as because of developments in regulation and carbon pricing
that support society’s objectives - UNEP FI.

Sustainability Indices CSR Performance and Financial Performance

 Performance and Growth
The rise and rise of ESG investing
$45 trillion of assets under management following
global sustainable investment approaches
(including ESG principles) expected by the end of
2020 (JPMorgan 2020)

15% more investment per month recorded in

companies with good sustainability ratings than
those with poor ratings between 2016 and 2019
(ABN AMRO/Saïd Business School 2020)

Stocks with better ESG ratings still fell but

outperformed the benchmark in the period
between February 19 and March 26 as the
coronavirus outbreak started to spread across the
globe (Stock return %).

The pandemic has accelerated the momentum of

sustainable investment strategies, but widespread
adoption will depend on proving that socially
responsible investment returns are superior over
the long term.
Additional Resources
Check out the following resources we’ve
compiled to help you learn more about
the topics relevant to your work.

38

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 Additional Resources
Useful Trainings
Two very good books to learn more with:

Value(s) – Building a better world for all – book by Mark Carney

Based on his experience as governor of the Banks of England and Canada, and a long
career at Goldman Sachs, Mark Carney offers a handbook on how to combine profit with
purpose. Chapter 11, ‘The Climate Crisis’, is especially worthy of note as he explains why
inactivity would be very costly and could threaten assets worth 20% of global GDP. Chapter
12, ‘Breaking the Tragedy of the Horizon’, then details how every financial decision should
take climate change into account.

Sustainable Investing. A Path to a New Horizon – edited by Herman Bril, Georg Kell and
Andreas Rasche
This book tells the story of how the convergence between corporate sustainability and
sustainable investing is now becoming a major force, driving systemic market changes.
The idea and practice of corporate sustainability is no longer a niche movement; investors
are increasingly paying attention to sustainability factors in their analysis and decision-
making, thus reinforcing market transformation. Aimed at both investment professionals
and academics, this book gives the reader access to more practitioner-relevant
information, and it also discusses implementation issues. The reader will gain insights into
39
how ‘mainstream’ financial actors relate to sustainable investing.
 Additional Resources
Useful Trainings
Principles of Sustainable Finance
One of the best and most comprehensive courses out there to get a background understanding of the theory, history, and mechanics of the
industry of sustainable finance. Brought to you by Dirk Schoenmaker, Professor of Banking and Finance at Rotterdam School of Management,
and other lectures. The course provides explores finance in terms of the UN Sustainable Development Goals, how social and environmental
factors should not be regarded as externalities, sustainable banking & asset management, effective shareholder and stakeholder engagement,
sustainable scenario analysis, and long-term value creation.
Free Canva course - can pay about $30 to get a certificate
Very useful book

Oxford Center for Sustainable Finance

Courses in many key areas. Can provide these materials from their website. The Oxford Public and Third Sector Academy for Sustainable
Finance provides excellent resources and classes for free or reduced rates for those working in the public space and for NGOs
- Introduction to Sustainable Finance Course (online) - free to £500
- Masterclass in Transition Planning (online) - free
- Masterclass in Transition Finance and Sustainability-Linked Instruments (online) - free
- Masterclass in Sustainable Finance for Journalists (online) - free

SASB and TCFD Training

Fundamentals of Sustainability Accounting (FSA) Credential - https://www.sasb.org/fsa/
https://sustainability-academy.org/product/online-certificate-on-sasb-tcfd-reporting/

Luxembourg Sustainable Finance Initiative

The LSFI has a database of sustainable finance trainings from all over the world that are being used by different organziations and educational
programs (Universities and Professional Certifications). This database has some of the most popular trainings and some quite obscure
institutes sharing their work with filters that can be selected for the topic you are most interested in - https://lsfi.lu/training/
The LSFI also provides are very useful breakdown of common initiatives, frameworks, principles, and tools that are shaping the industry across
the many different geographies and areas of work. Check out this database and the many other learnings that they have collected on their
website.
https://lsfi.lu/initiatives-frameworks-and-principles-overview/
Thank you!
Stay in touch with me

Stephen
[email protected]