The Sustainability Challenge
Sustainability, understood broadly in its environmental, economic and social dimensions, is emerging as the undisputed constraint that shapes future human economic activites.It specifically shapes how the financial system facilitates, shapes and empowers economic life leading to the concept of Sustainable Finance.
Developing tools and methodologies that improve the ability of all stakeholders to assess and report risks in sustainable finance context is an important and timely objective.
Sustainable Portfolio Management a cornerstone of sound financial systems
Sustainable Portfolio Management is an emerging concept that encompasses principles, tools, processes that help with meeting portfolio management objectives while incorporating sustainability constraints. In modern economies with a plethora of economic relations, supply chains and financial linkages, sustainable portfolio management becomes an indispensable tool for meeting the challenge of the sustainability transition.
Sustainable Portfolio Management (SPM) denotes a set of principles, tools, processes that underpin the management of Portfolios (collections of financial assets) in congruence with sustainability principles. The defining characteristic of Sustainable Portfolio Management" activities is that Financial Risk is assessed and managed not on a standalone basis but in an aggregate, portfolio, setting.