Sustainable financing, trend, profitability or commitment?

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Previously, economic activities were conceived as something isolated from caring for the environment or generating social impact, but currently markets and business ecosystems are beginning to evolve their way of generating business. One of the growing trends is sustainable financing, which through impact financing instruments seeks to provide solutions to environmental and social problems, and also contribute to economic development. Sustainable financing commits companies to comply with key actions to ensure that their performance generates environmental and social benefits, instead of risks or impacts, and that these are also directly related to the achievement of the sustainable development goals ( sdg) of the united nations or the paris agreement on climate change mitigation.

In exchange for this commitment, companies  Poland Phone Number List  receive favorable conditions on financial products such as bonds or loans. This has enabled business decisions to not only be made with a financial perspective or monetary returns, but now companies can be more aware, through responsible management of their current business model, to mitigate the negative consequences on the environmental and social impact they generate and/or invite them to amplify the positive effects. There are different types of bonds and loans depending on the impact they seek to generate. On the one hand, there are loans linked to sustainability or bonds labeled as green that promote environmental solutions such as the development of energy efficiency projects, renewable energies, water care, reduction of greenhouse gas emissions, among others.



On the other hand, there are social labeled bonuses which are intended for social impact issues such as the protection of human rights, promoting good working conditions in companies' value chains, reducing gaps due to gender inequality, promoting access to education and basic health, among other topics. Sustainable financing how to make sustainable financing with commitment? Although these mechanisms encourage the flow of resources towards impact issues and are accelerating the action of the private sector in joining initiatives of environmental and social benefit, the search for investment should not be the only motivation by which companies seek to generate change. And much less should it become a fashion, or an advertising strategy to look responsible and conscious.