1st Edition
Essential Concepts of Sustainable Finance An A-Z Guide
This book compiles and explains technical terms in sustainable finance in an easy-to-navigate A-Z format.
The interdisciplinary nature of sustainable finance means that those researching and working in the field often have to turn to a variety of different sources to look up various non-financial terms. Recognizing this issue, Ibrahim Sancak and Elisa Aracil have curated a comprehensive list of the key terms most commonly used in the field. Each entry maps out an important concept or idea and illustrates how it relates more broadly across this growing discipline, such as the changes and innovations required by the financial sector to meet the United Nation’s Sustainable Development Goals. Overall, Essential Concepts of Sustainable Finance will enable readers to communicate more effectively about finance within the context of sustainability.
With related terms and further reading included alongside the entries, this innovative and accessible volume will be of great interest to students, scholars, and practitioners alike.
Sustainable Finance: A Multidimensional and Multi-actor Framework
Visual Codes of Sustainable Finance Concepts
2030 Agenda for Sustainable Development
Crescentino, D. & Crescentino, L.
Active Engagement
Sancak, I.
Active Ownership
Sancak, I.
Active Voting
Sancak, I.
Anthropogenic Climate Change
Sancak, I.
Anthropogenic Emission
Sancak, I.
Baseline and Credit Mechanism
Gerres, T.
Best-in-Class Screening
Sancak, I.
Best-in-Universe Screening
Sancak, I.
Biocapacity
Sancak, I.
Biodiversity
Sancak, I.
Biodiversity Finance
Sancak, I.
Biodiversity Intactness Index (BII)
Sancak, I.
Biodiversity Loss
Sancak, I.
Biosphere Integrity
Sancak, I.
Blended Finance
Sancak, I.
Blue Bonds
Ocal, T.
Blue Economy
Barrachina, M.
Blue Finance
Barrachina, M
Brown Economy
Sancak, I.
Brown Taxonomy
Sancak, I.
Brundtland Report
Crescentino, D. & Crescentino, L.
Business Sustainability
Gómez de Liaño, C.
Business-as-Usual
Aracil, E.
Cap and Trade System
Gerres, T
Carbon Allowance
Gerres, T.
Carbon Bubble
Sancak, I.
Carbon Credit
Gerres, T.
Carbon Dioxide (CO2)
Sancak, I.
Carbon (Dioxide) Capture
Gerres, T.
Carbon (Dioxide) Capture & Storage (CCS)
Gerres, T.
Carbon (Dioxide) Capture & Utilization (CCU)
Gerres, T.
Carbon Dioxide Equivalent (CO2e)
Sancak, I.
Carbon Emission
Sancak, I.
Carbon Emission Permit
Gerres, T.
Carbon Finance
Taskin, D.
Carbon Footprint
Sancak, I.
Carbon Leakage
Gerres, T.
Carbon Markets
Gerres, T.
Carbon Neutrality
Sancak, I.
Carbon Offsetting
Sancak, I.
Carbon Price
Gerres, T.
Carbon Removal / Carbon Dioxide Removal (CDR)
Sancak, I.
Carbon Sequestration
Sancak, I.
Carbon Sink
Sancak, I.
Carbon Taxation
Sancak, I.
Chief Sustainability Officer
Sancak, I.
Circular Economy
Barrachina, M.
Climate
Sancak, I.
Climate Change
Sancak, I.
Climate Change Adaptation
Sancak, I.
Climate Change Mitigation
Sancak, I.
Climate Crisis
Sancak, I.
Climate Disclosure Standards Board (CDSB)
Sancak, I.
Climate Finance
Taskin, D.
Climate Neutrality
Sancak, I.
Climate Stress Test / Testing
Sancak, I.
Climate-related Risk (CrR)
Ocal, T.
Common Good Value
Sancak, I.
Community Investing
Sancak, I.
Conference of the Parties (COP)
Sancak, I.
Corporate Citizenship
Gómez de Liaño, C.
Corporate Engagement
Sancak, I.
Corporate Governance
Brogi, M.
Corporate Social Responsibility
Gómez de Liaño, C.
Corporate Sustainability
Gómez de Liaño, C
Decarbonization
Sancak, I.
Development Finance
Moreno de Tejada, O.
Diversity, Equity, and Inclusion
Gómez de Liaño, C.
Double Materiality
Sancak, I.
Doughnut Economics
Wikström, T.
Dynamic Materiality
Sancak, I.
Earth Overshoot Day
Sancak, I.
Earth System
Sancak, I.
Ecological Footprint
Sancak, I.
Ecosystem Services
Sancak, I.
Emission Allowance
Gerres, T.
Emission Trading
Gerres, T.
Emissions Trading System
Gerres, T.
Enlightened Shareholder Value (ESV)
Sancak, I.
Environmental Capital
Sancak, I.
Environmental Economics
Vargas, C
Environmental Externalities
Vargas, C.
Environmental Factors (E of ESG)
Sancak, I.
Environmental Finance
Sancak, I.
Environmental Footprint
SoGReS-MF Research Group
Environmental Kuznets Curve
Sancak, I.
Environmental Risk
Ocal, T.
Environmental Taxonomy
Sancak, I.
Environmental, Social, and Governance Factors / ESG Factors / ESG Criteria
Sancak, I.
Equator Principles
Sancak, I.
ESG Analysis
SoGReS-MF Research Group
ESG Engagement
Sancak, I.
ESG Fund
Jurado, A.
ESG Incorporation
Sancak, I.
ESG Integration
Sancak, I.
ESG Investing/Investment
Sancak, I.
ESG Rating
Lagasio, V.
ESG Reporting
Sancak, I.
ESG Risks
Ocal, T.
ESG Voting
Sancak, I.
Ethical Investment / Ethical Investing
Sancak, I.
EU Taxonomy for Sustainability
Lagasio, V.
Exclusionary Investing
Benedetti, H.
Exclusionary Screening
Sancak, I.
Externalities
Sancak, I.
Finance-as-Usual
Sancak, I.
Financial Inclusion
Aracil, E
Financial Materiality
Sancak, I
Fossil Fuel
Sancak, I
Global Reporting Initiative
Kanashiro, P.
Global Warming
Sancak, I.
Global Warming Potential (GWP)
Sancak, I.
Governance Factors (G of ESG)
Lagasio, V.
Green Asset Ratio (GAR)
Ocal, T
Green Assets
Ocal, T
Green Bond Principles
Ocal, T
Green Bonds
Ocal, T
Green Company
Sancak, I.
Green Economy
Sancak, I.
Green Equities
Martin Bujack, K.
Green Finance
Ocal, T.
Green Fintech Taxonomy (Green Fintech Classification)
Ocal, T.
Green Growth
Sancak, I.
Green Investment
Martin Bujack, K.
Green Lease, Green Leasing
Ocal, T.
Green Loan
Ocal, T.
Green Loan Principles
Ocal, T.
Green Mortgage
Ocal, T.
Green Premium
Sancak, I.
Green Project
Sancak, I.
Green Taxonomy
Sancak, I.
Green Water
Sancak, I.
Greenhouse Effect
Sancak, I.
Greenhouse Gas Emission (GHG Emission)
Sancak, I.
Greenhouse Gas Neutrality
Sancak, I.
Greenhouse Gas Protocol (GHG Protocol)
Sancak, I.
Greenhouse Gases (GHGs)
Sancak, I.
Greenium
Sancak, I.
Greenwashing, Greenwash
Sancak, I.
Impact Finance
Pareja, B.
Impact Investing
Pareja, B.
Impact Lending
Pareja, B.
Impact Loan
Pareja, B.
Impact Materiality
Sancak, I.
Impact Measurement and Management
Ballesteros, C.
Inclusionary Investing
Benedetti, H.
Inside-out Perspective
Sancak, I.
Integrated Report
Sancak, I.
Integrated Reporting
Sancak, I.
Integrated Thinking
Sancak, I.
Integrated Value
Sancak, I.
Integrated Value Creation (IVC)
Sancak, I.
Intergovernmental Panel on Climate Change
Crescentino, L. & Crescentino, D
Internalization
Sancak, I.
International Integrated Reporting Council (IIRC)
Sancak, I.
International Sustainability Standards Board (ISSB)
Sancak, I.
Katowice Climate Package
Sancak, I.
Keeling Curve
Sancak, I.
Kyoto Protocol
Sancak, I.
Land Degradation
Ocal, T.
Land Degradation Neutrality
Ocal, T.
Land-system Change
Ocal, T.
Land-use Change
Ocal, T.
Life Cycle Assessment
SoGReS-MF Research Group
Linear Consumption
Sancak, I.
Linear Economy
Sancak, I.
Linear Production
Sancak, I.
Long-term Value Creation (LTVC)
Sancak, I.
Materiality
Esteban-Sánchez, P. & Pardo, E.
Microcredit
Sancak, I.
Microfinance
Sancak, I.
Microinsurance
Sancak, I.
Microloan
Sancak, I.
Millennium Development Goals
Crescentino, D.
Montreal Protocol
Sancak, I.
Nationally Determined Contributions
Pauw, P.
Natural Capital
Sancak, I.
Natural Resource
Sancak, I.
Negative Emission
Sancak, I.
Negative Externalities
Sancak, I.
Negative Screening
Sancak, I.
Net Zero Economy
Sancak, I.
Net Zero Emission
Sancak, I.
Non-Financial Information
Sancak, I.
Non-Financial Reporting
Sancak, I.
Norms-based Screening
Sancak, I.
OECD Guidelines for Multinational Enterprises
Sancak, I.
Outside-in Perspective
Sancak, I.
Paris Agreement
Sancak, I.
Parts per Million (ppm)
Sancak, I.
Physical Risk
Sancak, I.
Pieconomics
Sancak, I.
Pigouvian Tax
Sancak, I.
Planetary Boundaries
Sancak, I.
Planetary Boundaries Framework
Sancak, I.
Porter Hypothesis
Sancak, I.
Positive Externalities
Sancak, I.
Positive Screening
Sancak, I.
Principles for Responsible Banking
Ocal, T.
Principles for Responsible Investment (PRI)
Benedetti, H.
Principles for Sustainable Insurance (PSI)
Sancak, I.
Race to Zero
Sancak, I.
Renewable Energy
Sancak, I.
Responsible Consumption
Fernandez-Olit, B.
Responsible Investment
Fernandez-Olit, B.
SASB Standards
Kanashiro, P.
Scope 1 GHG Emissions
Sancak, I.
Scope 2 GHG Emissions
Sancak, I.
Scope 3 GHG Emissions
Sancak, I.
Shareholder Action
Sancak, I.
Shareholder Activism
Sancak, I.
Shareholder Primacy
Sancak, I.
Shareholder Value
Fernandez-Olit, B.
Short Termism
Fernandez-Olit, B
Sin Company
Fernandez-Olit, B.
Sin Stock
Fernandez-Olit, B.
Social Bank
Cotelo-Ouréns, Y.
Social Bonds
Cotelo-Ouréns, Y.
Social Externalities
Cotelo-Ouréns, Y.
Social Factors (S of ESG)
Cotelo-Ouréns, Y.
Social Finance
Cotelo-Ouréns, Y.
Social Taxonomy
Paraskevas, P.
Socially Responsible Investment (SRI)
Paraskevas, P.
Stakeholder Capitalism
Sancak, I.
Stewardship
Sancak, I.
Stranded Asset
Sancak, I.
Sustainability
SoGReS-MF Research Group
Sustainability Accounting Standards Board (SASB)
Sancak, I.
Sustainability Disclosure
Pardo, E. & Esteban-Sánchez, P.
Sustainability Index
Aracil, E.
Sustainability Linked Loans
Ocal, T.
Sustainability Linked Loan Principles
Ocal, T.
Sustainability Rankings
Madera del Pozo, A.
Sustainability Rating Providers
Madera del Pozo, A.
Sustainability Ratings
Zeidan, R.
Sustainability Reporting
Sancak, I.
Sustainability Risks
SoGReS-MF Research Group
Sustainability Science
Sancak, I.
Sustainability Score
Madera del Pozo, A.
Sustainability Taxonomy
Sancak, I.
Sustainability Transformation
Sancak, I.
Sustainability Transition
Sancak, I.
Sustainability-themed Investing
Sancak, I.
Sustainable Business Model
Aracil, E.
Sustainable Development
Aracil, E.
Sustainable Development Goals (SDGs)
Aracil, E.
Sustainable Digital Finance
Sancak, I.
Sustainable Finance
Aracil, E. & Sancak, I.
Sustainable Finance Forms
Sancak, I.
Sustainable Finance Literacy
Sancak, I.
Sustainable Finance Stages
Sancak, I.
Sustainable Finance Taxonomy
Sancak, I.
Sustainable Finance Technology (SuFTech)
Sancak, I.
Sustainable Insurance
Sancak, I.
Sustainable Investing, Sustainable Investment, Sustainability Investment (SI)
SoGReS-MF Research Group
Sustainable Investment Fund
Jurado, A.
Sustainable Investment Strategies
Sancak, I.
Sustainable Lending
Ocal, T.
Taxonomy
Sancak, I.
Thematic Investing
Sancak, I.
Tradable Emission Permit
Gerres, T.
Tradable Emission Right
Gerres, T.
Transition Finance
Sancak, I.
Transition Management
Vargas, C.
Transition Risk
Vargas, C.
Triple Bottom Line
Aracil, E.
Twin Transformation
Sancak, I.
United Nations Framework Convention on Climate Change (UNFCCC)
Pauw, P.
United Nations Global Compact
Sancak, I.
United Nations Guiding Principles for Business and Human Rights
Pardo, E. & Esteban-Sánchez, P.
Value Reporting Foundation
Sancak, I.
Values-based Banking
Cotelo-Ouréns, Y.
Biography
Elisa Aracil is a professor of business and economics and a researcher at Instituto de Investigación Tecnológica in Universidad Pontificia Comillas Madrid (Spain). She has worked in investment banking for more than ten years. Her research focuses on sustainable banks, innovation and digital transformation, corporate social responsibility, financial inclusion, and the role of finance in mitigating societal grand challenges. She has published her work in scientific journals such as the Journal of Business Research, the Journal of Cleaner Production, Finance Research Letters, Business Strategy and the Environment, Corporate Social Responsibility and Environmental Management, Business Ethics: A European Review, Business Strategy and Development, Sustainability, and the International Journal of Emerging Markets. She participates in various research projects at the national and international levels, funded by the European Commission, and is the Director of the CaixaBank Chair of Sustainable Economy.
Ibrahim Sancak is both an academic and a finance professional with more than 20 years of financial industry-related experience. He served as the founding director of the Market Oversight and Enforcement Division at the Capital Markets Board of Turkey. Dr. Sancak joined the ZWIRN-Research Center of the Ostfalia University of Applied Sciences (Germany) as a professor of finance in February 2019. Since then, he has been actively conducting scientific research in sustainable finance and digital finance. In 2020, he took part in delivering a sustainability management guide for Bankenfachverband, a key financial industry association in Germany. He teaches the "Economic Thinking and Sustainable Finance" course of the Sustainability & Risk Management (MSc) program at the university. He also teaches at various European universities, including the University of Roma Tre in Italy. He holds a bachelor’s degree in business administration and a master of business administration from Ankara University (Turkey), a master of science in finance from the George Washington University (the US), and a PhD in banking from Marmara University (Turkey). Professor Sancak also holds three certificates from the US Securities and Exchange Commission (SEC) on market regulation and supervision.
“Finance is crucial to sustainable development since transitioning toward a clean and just economy requires massive funding. Besides, increasing investors’ appetite for ESG assets underlies the fast-growing sustainable investment market. These trends underlie a proliferation of sustainability standards, ratings, scores, regulations, frameworks, and associations. This book provides a useful guide for non-ESG experts so that they understand the role of finance in achieving sustainable development.”
Professor Doctor Timo Busch, Chair of Management and Sustainability, University of Hamburg
“A valuable dimension of this book is its capacity to connect financial terms with non-financial ones. This book clarifies the sustainable finance notions to individual and institutional investors, financiers, managers, and the general public so that they can make informed decisions: business organizations need to embrace increasing sustainability standards, which requires a fundamental knowledge of sustainability; investors will benefit from clarifying adjacent concepts in sustainable investing, and students can improve their learning curve on the ever-growing sustainable finance arena. The value of this book is unquestionable as it facilitates understanding the building blocks of sustainable finance in the business world for years to come. Transformation starts with learning; learning begins with understanding fundamental concepts and this book is an excellent kickstart.”
Carlos Serrano, Climate Finance Advisory Services Lead, LAC Financial Sector, International Finance Corporation (IFC, World Bank Group)
Essential Concepts of Sustainability Finance provides an excellent guide to terms underlying climate change and its implications for finance. This is a very comprehensive and timely resource particularly in view of the recent proliferation of concepts and initiatives surrounding climate science and finance. Concepts ranging from biodiversity and sustainability science to green mortgage and transition finance are covered and nicely categorized using visual icons. A must-read for anyone with an interest in climate and sustainability issues.
Professor Gulcin Ozkan, King's Business School, King's College London, Bush House, 30 Aldwych London WC2B 4BG, UK
