THE BUSINESS CASE FOR SUSTAINABLE FINANCE
The Business Case for Sustainable Finance Edited by Iveta Cherneva
The post-financial crisis period marked by reflection and analysis of “what went wrong” has put the spotlight on the operations of the global financial industry. Until recently, environmental, social and governance (ESG) factors have been present only in the soft domains of ethics, philanthropy and reputation management. Few academic works have asked the question: is there a business case for sustainable finance? Published on 20 June this year in the week of the UN Rio+20 conference on sustainable development, the edited volume The Business Case for Sustainable Finance brings together finance industry insider perspectives from top global institutions, which focus on the bottom line for integrating ESG factors into the operations of the finance industry. “Highly recommended. The book provides a truly global picture, drawing on the expertise of the foremost voices in the sustainable finance space.” – Dr. James Gifford, Executive Director, United Nations Principles for Responsible Investment "In this collection of outstanding essays – where the business case meets sustainable finance in China and South Africa; for poverty reduction and climate change; with microfinance and ESG analysis – the rubber meets the road and it will leave its mark. You won't want to miss it." Steve Lydenberg, Founding Director, Initiative for Responsible Investment, Kennedy School of Government, Harvard University
“Topical and timely, the book will be useful to finance professionals, as well as students of finance. It addresses the elephant in the room: does sustainable finance make commercial sense for financial institutions?” – Colin Melvin, CEO, Hermes Equity Ownership Services Ltd. From sector-specific perspectives such as investment, asset management, banking, and microfinance, to current topics such as quality of management, litigation, climate change, natural capital, labour, human rights standards, impact investing, and poverty reduction, to managing risk in emerging markets such as China and South Africa, The Business Case for Sustainable Finance provides a global picture of the way issues traditionally seen as ethical and public “do-good” issues actually affect returns in a very real numerical way. Here is how some of the study contributors commented on these issues for GBM: “As the evidence mounts of how important ESG issues can be to the fortunes of corporations, these factors are seen less as the weird preoccupation of an isolated minority and more as the central issues that they really are.” Mike Scott, Journalist “There are associated risks with investing in emerging markets”, Helena Vines Fiestas, Co-Head of SRI Research and Head of Sustainable Thematic Research, BNPParibas Asset Management “In South Africa finance institutions face significant risk-associated challenges related to climate change and the conservation of natural resources, which require a framework for ESG risk identification and a long term strategy for effective risk management”, Madeleine Ronquest, Head of Environmental and Social Risk, FirstRand Group Ltd. “Integrating ESG indicators has been accepted as an essential element of mitigating risk and avoiding investment in ‘unhealthy’ institutions”, Dr. Harry Hummels, Managing Director, SNS Asset Management “There is an added value to combining financial and non-financial metrics”, Marieke de Leede, Impact & Investment Analyst, SNS Asset Management “Investors need to look beyond stock-specific issues and take a more holistic approach to risk management that encompasses wider structural risks”, Rory Sullivan, Strategic Adviser, Ethix SRI Advisers “There is a low-carbon financial opportunity, which is defined by two complementary trends: first, taking energy out of the economy through improvements in efficiency; and second, taking carbon out of energy by curbing emissions from fossil fuels”, Nick Robins, Head of Climate Change Centre of Excellence, HSBC.
66 • Global Business Magazine • July 2012
July 2012 • Global Business Magazine • 67
