2.3 Sustanability Flashcards
Sustainability
Meeting people’s needs in the present without compromising the ability of future generations to meet their needs
The 3 pillars of sustainability
Economic, social and environmental
(Profit). (People). (Planet)
Economic sustainability
When countries allocate their resources so that short term growth does not comprise longer term economic development and does not have negative impacts on society and environment.
Economic sustainability include:
Reducing unsustainable consumption and recycling waste materials to ensure that sufficient resources are left to benefit future generations
Social sustainability
When all members have the opportunity to live in prosperity.
Is healthy, safe and educated and benefit from human rights and fair labour practises
Environmental sustainability
Is sustainable when it can maintain an ecological balance
Addressing climate changes reducing biodiversity loss and cutting pollution
Sustainable behaviour by organisation
Important for businesses to direct their activities to reducing greenhouse gas emissions and promoting the health of worlds ecosystem
Organisations performance can influence:
- it’s competitive advantage
- reputation
- ability to attract and retain customers workers, customers
- employees morale, commitment and productivity
- views of investors, lenders, sponsors and the financial community
- relationship with companies, gov, the media, suppliers etc in which it operates
Banks position in society and the wider environment
Environment
Society
Economy
Financial systems
Banks
Responsible banking
Failure of one bank has an effect on other banks
For this banks must be aware of their systemic responsibilities and to ensure they lend to credit worthy customers and at the same time, maintain growth level of liquidity and capital.
Step to become more sustainable for a bank
First step for a bank to become more sustainable = to reduce its own environmental footprint
E.G. using energy efficient buildings, recycling waste, encouraging staff to use public transport.
Continue to use finance high carbon
Banks continue to the increase and impacts of climate change and impact wider environment (e.g. deforestation, and habitat loss)
United Nations Sustainable Development Goals (UN SDGs)
2015, shared a blueprint for ending poverty in all its forms and achieving peace and prosperity for people and the planet.
Improve health and education, reduce inequality
17 sustainable development goals
These goals need to be actioned by all countries, developed and developing.
Goal 1
No poverty
- end poverty in all its forms everywhere
Goal 2
Zero hunger
- end hunger, achieve food security and improved nutrition and promote sustainable agriculture
Goal 3
Good health and well being
- healthy lives and promote well being for all ages
Goal 4
Quality education
- quality education and promoting lifelong learning opportunities
Goal 5
Gender equality
+ empower all women and girls
Goal 6
Clean water and sanitation
- ensure availability and sustainable management of water and sanitation for all
Goal 7
Affordable and clean energy
Ensure access to affordable, reliable, sustainable and modern energy for all
Goal 8
Decent work and economic growth
Promotes sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Goal 9
Industry innovation and infrastructure
Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation
Goal 10
Reduce inequalities
Within and among countries
Goal 11
Sustainable cities and communities
- make cities and human settlements, inclusive, safe, resilient and sustainable
Goal 12
Responsible consumption and production
Ensure sustainable consumption and production patterns
Goal 13
Climate action
Take urgent action to combat climate change and its impacts
Goal 14
life below water
Conserve and sustainably use the oceans, seas and marine resources for sustainable development
Goal 15
Life on land
Protect, restore sustainable use of terrestrial ecosystems.
Sustainably manage forests
Combat desertification
Reserve land degradation and biodiversity
Goal 16
Peace, justice and strong institutions
Promote peaceful and inclusive societies for sustained development
Build effective, accountable inclusive institutions for all levels of
Goal 17
Partnerships for the goals
Implementation, revitalize the global partnership for sustainable development
Bank can support the SDGs in many ways:
- Investment decisions incorporate environmental social
- Fiduciary duty - obligation to act in the best interest of another party with sustainable development
- Engaging with companies they hold a stake in
- Providing debt finance for SDG solutions
- Promoting access to finance for individual entrepreneurs and small to achieve SDGs
- Developing innovative financial products and processes
- Their operations and wider business activities support
The Paris Agreement (TPA)
Legally binding international treaty on climate change
Adopted by 196 countries
Goal = to increase in the global average temperature to well below 2 °C above pre industrial levels
- to limit the temp to 1.5 °C
TPA Works on a 5 year cycle of increasingly climate ambitious climate actions.
Since 2020, national climate actions plan = nationally determined contributions (NDCs)
These are what countries have been submitting for their climate actions
Nationally determined contributions (NDCs)
These set out the actions that countries will take to reduce their emissions and adapt to the impact of climate change
Countries are invited to submit greenhouse gas emissions reduction strategies for the long term.
Countries need support to plan and fulfil their NDCS
Banks can provide financial assistance which will make a big contribution
Mitigation
Involved large scale investments in areas such as renewable energy, adaption
which means building resilience to the impacts of changing climate such as building flood defences
