Why Sustainable Finance is Important

The video discusses the importance of sustainable finance, highlighting how traditional finance often overlooks social and environmental externalities. It emphasizes the need to consider long-term performance and the impact of business activities on communities and the environment. The video also explores future market trends, such as increased demand for resources by 2030, and identifies key drivers for incorporating externalities into finance, including shareholder pressure and regulatory requirements.

What is a major limitation of traditional finance according to the video?

• It is too complex for most investors.

• It does not consider social and environmental externalities.

• It focuses too much on short-term gains.

• It relies heavily on government subsidies.

By 2030, what is the expected increase in food demand?

• 70%

• 20%

• 30%

• 50%

Which organization is mentioned as requiring climate risk disclosure?

• International Monetary Fund

• United Nations

• World Bank

• Securities and Exchange Commission (SEC)

What does CDP stand for now?

• It is just CDP now, covering more than carbon.

• Corporate Development Program

• Climate Data Platform

• Carbon Disclosure Project

What is one of the key drivers for incorporating externalities into finance?

• Shareholder pressure

• Decreased consumer interest

• Increased government taxes

• Technological advancements