Sustainable Finance

Beyond financial return

Sustainable Finance at a glance

What is Sustainable Finance?

Watch the video below to discover what Sustainable Finance is all about.

Credits: LSFI, ABBL, ALFI, CSSF, LuxFlag

Sustainable Finance helps protect the environment, mitigate climate change, promote social equity, and help build a resilient, sustainable, and more equitable future.

Sustainable finance means using current and future investments and savings to support projects and companies that, beyond financial return, consider their non-financial impact, which includes environmental, social, and governance (ESG) aspects.

What does ESG involve?

ESG Criteria

Why has Sustainable Finance become an imperative for financial institutions?

Sustainable finance is an opportunity for governments, institutions, and investors to help achieve carbon-neutral, fairer economy by rethinking decision-making processes and strategies. Over the years, several initiatives have been put in place around the globe to encourage the transition to sustainable finance:

In 2015, the United Nations adopted the 17 Sustainable Development Goals (SDGs).
In December 2015, the signatories of the Paris Agreement agreed to keep the global temperature increase in this century well below 2°C above pre-industrial levels.
On 11 December 2019, the European Commission published the European Green Deal, following fast regulatory developments at European level.
In March 2018, the EU Commission adopted the action plan on sustainable finance, that set out a comprehensive strategy to further connect finance with sustainability, focusing on reorienting capital flows towards a more sustainable economy, mainstreaming sustainability into risk management and fostering transparency and long-termism.