In an attempt to differentiate sustainability finance, green finance and climate finance, I came across this excellent overview compiled by the European Political Strategy Center (EPSC, June 2017): Financing Sustainability Triggering Investments for the Clean Economy (pdf)   which offers excellent illustrations.

 

Have you come across other helpful overviews and illustrations? Share them here

 

Illustrations as seen in above EPSC publication:

 

(1) Definitions

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(2) History

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(3) Finance as motor for sustainable development

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(4) Financial system

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(5) Impacts of disasters on the economy

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The Principles for Responsible Investment (PRI) are in essence a set of global best-practices for responsible investment. Rising numbers of institutional investors – from all regions of the world – are embracing them, marking a major advance in mainstream financial markets.

 

The website says the final Blueprint for Responsible Investment  is "soon to come" (May 2017) and will inform the PRI’s strategic direction and priorities over the next decade. It will identify which recommendations from the consultations and impact evaluation the PRI will take forward, include a high-level implementation plan and timeline and outline how the organisation will measure the success and impact of its work over the next 10 years.

Edit (Sept 2017):

The Blueprint 2017 is now available on the PRI Blueprint microsite and attached to this article. The guiding motto of the Blueprint is "Our aim over the next 10 years is to bring responsible investors together to work towards sustainable markets that contribute to a prosperous world for all."


The Principles for Responsible Investment build on the different angles Environment, Social and Governance factors can impact on a company/organisation:

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Originally launched in April 2006, the principles are summarised as follows:

  1. Incorporate ESG issues into investment analysis and decision-making processes.
  2. Be active owners and incorporate ESG issues into our ownership policies and practices.
  3. Seek appropriate disclosure on ESG issues by the entities in which we invest.
  4. Promote acceptance and implementation of the Principles within the investment industry
  5. Work together to enhance our effectiveness in implementing the Principles
  6. Each report on our activities and progress towards implementing the Principles


Full PRI Introduction can be downloaded here (9p.)

The PRI Website can be accessed here.

The proposal to launch the Green Finance Study Group (GFSG) under China’s Presidency of the G20 in 2016 was adopted by the G20 Finance and Central Bank Deputies meeting on 15 December 2015 in Sanya, China. The Study Group is co-chaired by China and the United Kingdom, with support from UN Environment as secretariat.


In 2017, the GFGS has developed a set of 7 options (for consideration for voluntary adoption) to enhance the ability of the financial system to mobilize private capital for green investment.

  1. Provide strategic policy signals for investors regarding the strategic framework for green investment e.g., to pursue the Sustainable Development Goals (SDGs) and the Paris Agreement.
  2. Promote voluntary principles for green finance and evaluate progress on sustainable banking, responsible investment and other key areas of green finance.
  3. Expand learning networks for capacity building: available examples being the Sustainable Banking Network (SBN), the UN-backed Principles for Responsible Investment (PRI), or other international and domestic green finance initiatives.
  4. Support the development of local green bond markets.
  5. Promote international collaboration to facilitate cross-border investment in green bonds.
  6. Encourage and facilitate knowledge sharing on environmental and financial risk.
  7. Improve the measurement of green finance activities and their impacts.


This here is the document repository of the G20 Green Finance Study Group (2016-2017), showing the synthesis report, input papers and communiques.

Input papers have been prepared by the authors as a contribution to the G20 Green Finance Study Group (GFSG) but have not been endorsed by it nor do they represent the official views or position of the GFSG or any of its members.

Full report: Chinese | English
Summary: Arabic | Chinese | English | French | Portuguese | Russian | Spanish