Sustainable Finance

Question 1

SUSTAINABILITY

Answer 1

Dictates that human actions should respect the natural equilibrium of nature, to preserve the resources of the planet, and to guarantee the biodiversity of all species.

Question 2

ENVIRONMENTAL SUSTAINABILITY

Answer 2

Responsibility to conserve biodiversity and protect global ecosystems to support socioeconomic progress.

Question 3

SOCIAL SUSTAINABILITY

Answer 3

Create sustainable successful places that promote well-being by understanding the needs of people from the places they work/live.

Question 4

ECONOMIC SUSTAINABILITY

Answer 4

Generating economic growth without harming the environment or people’s social standards.

Question 5

DOUGHNUT ECONOMY

Answer 5

Combines the concepts of planetary boundaries (ecological ceiling) with the complementary concept of social boundaries.

Question 6

GREEN ECONOMY

Answer 6

Aims for sustainable development by reducing environmental risks and ecological scarcities.

Question 7

BLUE ECONOMY

Answer 7

Aims for sustainable use of ocean resources for economic growth, improved livelihoods and jobs, and ocean ecosystem health.

Question 8

CIRCULAR ECONOMY

Answer 8

Model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products as long as possible.

Question 9

SUSTAINABLE DEVELOPMENT GOALS (SDG)

Answer 9

17 goals that aim to satisfy the basic needs, ensure well-being and decent work, climate stability, and preserve natural resources.

Question 10

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Answer 10

Practices and policies undertaken by corporations that are intended to have a positive influence on the world.

Question 11

EUROPEAN TAXONOMY

Answer 11

Classification system that establishes a list of environmentally sustainable economic activities.

Question 12

SUSTAINABLE AND RESPONSIBLE INVESTMENTS (SRI)

Answer 12

Implementation taking into account traditional financial criteria (expected risk/return) and ESG criteria.

Question 13

EXCLUSION OR NEGATIVE SCREENING

SRI STRATEGY

Answer 13

Consists of eliminating companies whose activities are contrary to ESG criteria.

Question 14

BEST IN CLASS

SRI STRATEGY

Answer 14

Promoters need internal/external ESG analysts to provide info on best companies on performance to facilitate investment decisions.

Question 15

NORMS BASED SCREENING

SRI STRATEGY

Answer 15

Investor assumes compliance or noncompliance with the criteria covered by a set standard.

Question 16

THEMATIC INVESTMENTS

SRI STRATEGY

Answer 16

Investing in some ESG related sectors like sustainable transport, or renewable energies.

Question 17

IMPACT INVESTMENTS

Answer 17

Serve to fund positive impact businesses with projects that have positive/measurable social and/or environmental impact.

Question 18

REAL ESTATE FUNDS

Answer 18

Invest in securities offered by public real estate companies which provide value through appreciation.

Question 19

INFRASTRUCTURE FUNDS

Answer 19

Enables direct investment of small amounts of money from investors in infrastructure to earn a small portion of the income as return.

Question 20

SOCIAL IMPACT BONDS

Answer 20

Contract with the public sector which pays for better social outcomes.

Question 21

SOCIAL IMPACT FUNDS

Answer 21

Fund a basket of projects mainly in the housing, energy, and micro-finance sectors.