Sustainable Finance Flashcards
what does CSR stnad for
corporate social responsibilty
what does SRI stand for
socially responsible investign
what does ESG stand for
environmental social and governanance
three pillars of ESG
environmental
social
governance
on what basis are environmental scores given
resource use score
emissions use score
innovation score
on what basis are social scores given
workforce score (healthy workplace with diverse opportunites)
human rights score
community score (good citizens, protecting public health)
product repsonsibility score (quality goods and services integrating the customer’s health and safety)
on what basis are governance scores given
management
shareholders (equal treatment)
CSR strategy (integrates social and environmental dimensions into decision making process)
what are the three scopes of carbon emissions
- direct emissions from company
- indirect emission from purchasing energy
- all indirect emission that occur in value chain
example of scope 3 emissions
car company when the car is being driven by the end user
refrigeration of Bulmers in pub
what is the problem with increased disclosure
the more we talk about sustainability - the more people think things are improving
however there is little auditing and governance over disclosure, it is voluntary and not standardised
This can lead to green washing
why is ireland well behind on eu targets
politically difficult to get changes through
physical risks of climate change
climate related events eg floods, fires
and their economic costs
transition risks of climate change
risks from changes in government policy, new technologies, shifts in market preferences
what does EU taxonomy regulation give
a list of sustainable activities
what is most controversy surrounding the eu taxonomy about
whether to include gas and nuclear
some countries want a true version of what is green so they didn’t want them
while others argument we need to transition slowly
what is the eu regulation for investors
sustainable finance disclosure regulation
what is the EU regulation for large and listed companies
corporate sustainability reporting directive
what does SFDR stand for
sustainable finance disclosure regulation
what does CSRD stand for
Corporate sustainability reporting directive
what is sustainability risk
an environmental, social or governance event or condition that, if it occurs could cause an actual or potential material negative impact on the value of investment
what is sustainable investment
an investment approach that considers environmental, social and governance factors in portfolio selection and management
what are the three investment categories in SFDR
Dark Green
Light Green
Residual
what is a dark green investment
contributes to social and environmental objective
what is a light green investment
screens environmental and social impact but not the objective of the company
