Publisher Description

Finance is widely seen as an obstacle to a better world. Principles of Sustainable Finance explains how the financial sector can be mobilized to counter this. Using finance as a means to achieve social goals we can divert the planet and its economy from its current path to a world that is sustainable for all. Written for undergraduate, graduate, and executive students of finance, economics, business, and sustainability, this textbook combines theory, empirical data, and policy to explain the sustainability challenges for corporate investment. It shows how finance can steer funding to certain companies and projects without sacrificing return and thus speed up the transition to a sustainable economy. It analyses the Sustainable Development Goals as a strategy for a better world and provides evidence that environmental, social, and governance factors matter, explaining in detail how to incorporate these factors in the corporate and financial sectors.Tailored for students, Principles of Sustainable Finance starts each chapter with an overview and learning objectives to support study. It includes suggestions for further reading, lists and definitions of key concepts, and extensive uses of figures, boxes, and tables to enhance educational goals and clarify concepts.This title is available as an eBook. Visit VitalSource for more information or to purchase.

Author Biography

Dirk Schoenmaker is a Professor of Banking and Finance at the Rotterdam School of Management, Erasmus University. He is also academic director of the Erasmus Platform for Sustainable Value Creation, a Fellow at the Brussels-based think tank Bruegel and a Research Fellow at the CEPR. Before joining RSM, Dirk was Dean of the Duisenberg School of Finance and worked at the Dutch Ministry of Finance and the Bank of England. Prof Schoenmaker is author of Governance of International Banking: The Financial Trilemma (Oxford University Press, 2013) and co-author of Financial Markets and Institutions: A European Perspective (Cambridge University Press, fourth edition 2019).Willem Schramade is Senior Portfolio Manager Impact Investing and Sustainable Equities at NN Investment Partners and Guest Lecturer at the Rotterdam School of Management, Erasmus University. He manages the listed equity impact fund at NN Investment Partners, one of the first of its kind. He has been involved in sustainable investing since 2009 and has previous worked at Robeco, PwC, and General Electric.

Table of Contents

Part I: What is Sustainability and Why Does it Matter? 1: Sustainability and the Transition ChallengePart II: Sustainability's Challenges to corporates 2: Externalities - Internalisation 3: Governance and Behaviour 4: Coalitions for Sustainable Finance 5: Strategy and Intangibles - Changing Business Models 6: Integrated Reporting - Metrics and DataPart III: Financing Sustainability 7: Investing for Long-Term Value Creation 8: Equity - Investing with an Ownership Stake 9: Bonds - Investing without voting power 10: Banking - New Forms of Lending 11: Insurance - Managing Long-Term RiskPart IV: How To Get There? 12: Transition Management and Integrated Thinking

Review

Sustainable finance has emerged as a major new field for practitioners, but has largely bypassed the classroom for lack of a good textbook. Principles of Sustainable Finance is an impressive textbook that fills this important gap. It lucidly explains the fundamental challenge climate change poses for financial markets. It is extremely well-informed about the latest developments and weaves together a coherent account of widely dispersed approaches, including research that is otherwise inaccessible to the layman. It is essential reading for any student seeking to understand the main ideas and trends in sustainable finance. * Patrick Bolton, Professor of Business at Columbia University *
The financial system is integral to achieving a smooth transition to a low carbon economy. Based on their extensive careers in finance and academia, Schoenmaker and Schramade set out an insightful vision for a sustainable financial sector, one where social and environmental dimensions are integrated within financial decisions. At a time when the need for a sustainable financial system becomes ever more pressing, this book furthers the debate on how to get there and what role each financial market participant has to play. * Mark Carney, Governor of the Bank of Englad *
The UN Sustainable Development Goals 2030 are predicated on the idea that current and future generations have the resources needed to ensure access to clean water, food, shelter, health, education and energy, irrespective of the place of birth, while caring and preserving our common home: The Earth. In Principles of Sustainable Finance, Dirk Schoenmaker and Willem Schramade discuss the importance of sustainable finance and how it can help allocate resources to individual and social needs, over time, while respecting our planetâs boundaries. It is an indispensable read for students, professionals and policy-makers. * Vitor Gaspar, Director Fiscal Affairs Department at the International Monetary Fun *
I am sometimes asked what a biologist is doing at the Ministry of Finance. The answer is simple: there is no better place for a biologist than working with finance. With the monumental challenges we are facing, such as climate change and the loss of biodiversity, mainstream finance needs to become truly sustainable. This implies that a larger skillset is needed for those dealing with economics. This textbook contributes to the change needed. * Per Bolund, Minister for Financial Markets in Sweden *
The investment decisions of today shape our future. We have a choice. Do we maximise short-term returns, or create long-term sustainable value? It is becoming increasingly clear that society is reaching ecological and social boundaries, and that we can only prosper if we respect these boundaries. Principles of Sustainable Finance provides investors and financiers with the tools to make the right decisions, now and in the future. * Eloy Lindeijer, Chief Investment Office at PGGM *
With this work, Schoenmaker and Schramade make an invaluable contribution to the role of finance in the transition of the global economy to a low carbon growth path. It should be required reading in the C-suite of any bank grappling with what climate change means for its lending strategy. * Stewart James, Managing Director Public Affairs at HSBC *
Principles of Sustainable Finance comes with a perfect timing: all around the planet a new, long-term and responsible capitalism is emerging. It requires to combine both a new academic perspective and attention to its concrete implementation. This is exactly what this important book achieves and makes it so valuable for both students, researchers and practitioners. * Fred Samama, Co-Head of Institutional Clients at Amundi *

Promotional

Finance is widely seen as an obstacle to a better world. Principles of Sustainable Finance explains how the financial sector can be mobilized to counter this.

Long Description

Finance is widely seen as an obstacle to a better world. Principles of Sustainable Finance explains how the financial sector can be mobilized to counter this. Using finance as a means to achieve social goals we can divert the planet and its economy from its current path to a world that is sustainable for all. Written for undergraduate, graduate, and executive students of finance, economics, business, and sustainability, this textbook combines theory, empirical data, and policy to explain the sustainability challenges for corporate investment. It shows how finance can steer funding to certain companies and projects without sacrificing return and thus speed up the transition to a sustainable economy. It analyses the Sustainable Development Goals as a strategy for a better world and provides evidencethat environmental, social, and governance factors matter, explaining in detail how to incorporate these factors in the corporate and financial sectors.Tailored for students, Principles of Sustainable Finance starts each chapter with an overview and learning objectives to support study. It includes suggestions for further reading, lists and definitions of key concepts, and extensive uses of figures, boxes, and tables to enhance educational goals and clarify concepts.Principles of Sustainable Finance is also supported by an online resource that includes teaching materials and cases.

Review Quote

"Sustainable finance has emerged as a major new field for practitioners, but has largely bypassed the classroom for lack of a good textbook. Principles of Sustainable Finance is an impressive textbook that fills this important gap. It lucidly explains the fundamental challenge climate change poses for financial markets. It is extremely well-informed about the latest developments and weaves together a coherent account of widely dispersed approaches, including research that is otherwise inaccessible to the layman. It is essential reading for any student seeking to understand the main ideas and trends in sustainable finance." -Patrick Bolton, Professor of Business at Columbia University "The financial system is integral to achieving a smooth transition to a low carbon economy. Based on their extensive careers in finance and academia, Schoenmaker and Schramade set out an insightful vision for a sustainable financial sector, one where social and environmental dimensions are integrated within financial decisions. At a time when the need for a sustainable financial system becomes ever more pressing, this book furthers the debate on how to get there and what role each financial market participant has to play." -Mark Carney, Governor of the Bank of England "The UN Sustainable Development Goals 2030 are predicated on the idea that current and future generations have the resources needed to ensure access to clean water, food, shelter, health, education and energy, irrespective of the place of birth, while caring and preserving our common home: The Earth. In Principles of Sustainable Finance, Dirk Schoenmaker and Willem Schramade discuss the importance of sustainable finance and how it can help allocate resources to individual and social needs, over time, while respecting our planet's boundaries. It is an indispensable read for students, professionals and policy-makers." -Vitor Gaspar, Director Fiscal Affairs Department at the International Monetary Fund "I am sometimes asked what a biologist is doing at the Ministry of Finance. The answer is simple: there is no better place for a biologist than working with finance. With the monumental challenges we are facing, such as climate change and the loss of biodiversity, mainstream finance needs to become truly sustainable. This implies that a larger skillset is needed for those dealing with economics. This textbook contributes to the change needed." -Per Bolund, Minister for Financial Markets in Sweden "The investment decisions of today shape our future. We have a choice. Do we maximise short-term returns, or create long-term sustainable value? It is becoming increasingly clear that society is reaching ecological and social boundaries, and that we can only prosper if we respect these boundaries. Principles of Sustainable Finance provides investors and financiers with the tools to make the right decisions, now and in the future." -Eloy Lindeijer, Chief Investment Officer at PGGM "With this work, Schoenmaker and Schramade make an invaluable contribution to the role of finance in the transition of the global economy to a low carbon growth path. It should be required reading in the C-suite of any bank grappling with what climate change means for its lending strategy." -Stewart James, Managing Director Public Affairs at HSBC "Principles of Sustainable Finance comes with a perfect timing: all around the planet a new, long-term and responsible capitalism is emerging. It requires to combine both a new academic perspective and attention to its concrete implementation. This is exactly what this important book achieves and makes it so valuable for both students, researchers and practitioners." -Fred Samama, Co-Head of Institutional Clients at Amundi

Feature

Deals with thematic issues including sustainability, externalities, governance, strategy, and integrated reportingCovers the full scope of finance providing an integrated view on investing, banking, and insuranceEach chapter includes an overview and learning objectives with suggestions for further reading and a list of key concepts used to support educational goalsMakes extensive use of figures, boxes, and tables to clarify concepts and give examplesAuthored by a finance professor and fund manager, offering both a theoretical and practical depth with examples taken from financial markets and corporate activitiesSupported by online companion teaching materials and cases

New Feature

Part I: What is Sustainability and Why Does it Matter? 1. Sustainability and the Transition Challenge Part II: Sustainability's Challenges to corporates 2. Externalities - Internalisation 3. Governance and Behaviour 4. Coalitions for Sustainable Finance 5. Strategy and Intangibles - Changing Business Models 6. Integrated Reporting - Metrics and Data Part III: Financing Sustainability 7. Investing for Long-Term Value Creation 8. Equity - Investing with an Ownership Stake 9. Bonds - Investing without voting power 10. Banking - New Forms of Lending 11. Insurance - Managing Long-Term Risk Part IV: How To Get There? 12. Transition Management and Integrated Thinking

Details