Financial markets are often seen as the bad side of the economy and in 2008, we had proof that it has the power to damage the economy. Responsible finance is taking into account sustainability-related information to make decision through finance in order to invest differently. Needless to say, it is becoming a real trend.
According to Maël Lagadec, there are two approaches:
- Value-driven approach (refusing to finance certain types of activities)
- Risks and opportunities approach
Maël is a manager at Sustainalytics , an ESG research provider. They analyze qualitatively and quantitatively the sustainability performance and risk exposure of companies listed globally, in order for banks and investors to make better investment decisions.
A really inspiring episode of Changemaker stories which will help you understand a complex and usually over-simplified topic.
Have a great listening!