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Towards a more sustainable Europe - Coggle Diagram
Towards a more sustainable Europe
Sustainable
Meeting the needs of the present without compromising the ability of future generations to meet their own needs.
Key concepts of sustainable finance
ESG criteria
Environmental (E)
Social (S)
Governance (G)
limitation
No standardization
often measure the risk to the company rather than the company's impact on society.
Risk of greenwashing
Double materiality
Impact Materiality (company on the environment)
Financial Materiality (environment on the environment)
EU taxonomy
EU Taxonomy Compass
EU tools
It establishes a framework to assess the degree to which an investment is environmentally sustainable
Substantial Contribution
Do No Significant Harm (DNSH)
Minimum Safeguards
Technical Screening Criteria
Net Zero Asset Managers Initiative
Align portfolios with Paris Agreement
Goal
Align investments with net-zero carbon by 2050
How?
Adjust portfolios
Sell polluting assets / buy sustainable assets
Track CO₂ emissions
Limitations
Should “problematic” companies be excluded completely, or should investors engage with them to push them to change?
Greenwashing
Giving a false impression of the environmental impact or benefits of a product, which can mislead consumers
Non-eligible sector
Company in sectors like tobacco, weapons or fossil fuels are excluded
Claptrap
Stuart Kirk
Net-zero targets is unrealistic and ineffective because most investments are in the secondary market, based on assumptions,
