We consider that green finance becomes one of the major instruments to improve society and achieve goals such as the Paris Agreement or the SDGs – the UN Sustainable Development Goals

What does green finance apply to?

Initially limited to a few financial tools such as green bonds, it must extend to all financial flows managed by the various players in the financial world, banks, sovereign wealth funds, pension funds, i.e. all institutions that play an intermediary role between a capital holder and investors.

 As we have obtained at ISO level, it is a question to produce green investment and credits (ISO 14030) The The Interesting case of equities

One equity consists in allocating funds for a private company that uses this capital to the development of its activity. As soon as a share results from a public offering, or is publicly listed, the recipient entity must provide verifiable information on the impact of its investments on the company as well as the corporate object, which must not create harm to others or be illegal.

As soon as the shares are invested, we should have information on its contribution of invested capital to climate change through internationally recognized tools such as the amount of direct and indirect emissions of the activity financed by the actions. We talk about Scope 1, 2 and 3 according to the GRI.

Why develop green finance?

The use of capital leads to the allocation of financial resources to extract, transform and distribute resources. All these techniques used create an environmental, social and economic burden for society. This load must be measured in order to reduce its impact. Given the withdrawals that man has made from non-renewable natural resources, he must limit their exploitation by leaving the assets in the earth (we speak of stranded assets). These phases of extraction and transformation lead to greenhouse gas emissions, pollutant emissions, which must be reduced to make the Earth viable.

These two examples show that it is a question for everyone and especially for the financial sector in the broad sense to exercise the PRINCIPLE OF RESPONSIBILITY, which requires the implementation of all professional actions to reduce the consequences of economic actions from the immediate environment to the limit of the Planet.

JOHANSON INTERNATIONAL implements actions that allow everyone

 See an example in Jean HETZEL's book "Buildings and sustainable development" 4.3.3 A banker for social and environmental innovations.

 

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