What is Sustainable Finance and Why is it?
                     WHAT IS SUSTAINABLE 
FINANCE AND WHY IS IT 
IMPORTANT?
What is 
sustainable 
finance?
Sustainable finance is all about using 
the power your investment funds gives 
to choose only companies that adhere to 
the highest environmental, social, and 
governance standards possible.
Source: www.rydoo.com
Environmental
The environmental aspect of the ESG principles 
looks at the way that the company interacts with its 
environment. Among other things it assesses the 
way the business uses energy and the waste it 
produces, the conservation of natural resources, 
the way it treats animals and deforestation.
Source: www.rydoo.com
Social
It will look at the company’s record on diversity and 
inclusion, data hygiene and security, its record on 
human rights the way it interacts with stakeholders 
and the contribution it (and its staff) makes to 
society.
Source: www.rydoo.com
Governance
It looks at shareholders’ rights, transparency, the 
board of directors and its makeup (including 
diversity), executive compensation, anti-bribery 
practices, political contributions and lobbying and 
venture partner compensation.
Source: www.rydoo.com
Why is 
sustainable 
finance 
The first i(mand pmoostr toabvinoust) ?reason that 
sustainable finance is important is that we should 
all be doing our individual bits to make the world a 
better place.
Sure this means making sure that we are good 
custodians of the natural world, but it also means 
more than that.
Source: www.rydoo.com
What is the 
difference between 
sustainable finance 
and ESG?
Though sustainable finance and ESG 
(environmental, social, and governance) finance 
are often used interchangeably, sustainability is a 
more general term that can mean anything many 
things including addressing climate risk, 
constructing a green building to creating a low-
carbon footprint. 
Source: www.rydoo.com
Advantage of 
sustainable finance 
for investors
Investors are making more investment decisions 
using a values-based set of criteria. 
But whether investors envision a healthier planet 
for their descendants or just want to make the 
world a better place right now, it makes sense to 
look into an investment that can not only provide a 
healthy return but also aligns with core values.
Source: www.rydoo.com
Challenges For 
Sustainable Banking
One of the biggest challenges for sustainable 
investing is that fiduciaries, such as asset 
managers and financial institutions, contend that 
ESG is not part of their defined fiduciary duties. The 
tide is turning, though, and they are beginning to 
integrate ESG practices as a form of their financial 
services.
Source: www.banks.com
Objectives of 
Sustainable Finance
• Sustainable funds
• Green bonds
• Impact investing
• Microfinance
• Active ownership
Source: www.banks.com
THANK YOU