week 10 - IBM

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  • Created by: jmf00632
  • Created on: 08-01-20 15:01
What are the 5 components of sustainable finance?
sustainability, externalises, governance, strategy, and integrated reporting
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what is an externality?
an economi term referring to a cost or benefit incurred or received by a third party. However, the third party has no control over the creation of that cost or benefi
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negative externality
enviromental externality example: pollution
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positive externality:
enviromental externality example: pollution
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what is the triple line bottom theory?
The triple bottom line is an accounting framework with 3 parts:social, environmental and financial. some organisations use this to evaluate their performance and increase business value
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What are the 5 components of sustainable finance?
sustainability, externalities, governance, strategy and intergtaed reporting
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What is ESG?
Environmental, societal, governance (based on triple bottom line theory)
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definition of sutainability
to manage the resource such that the average quality of life that we ensure ourselves can potentially be shared by all future generations
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what are we referring to when we mention "governancee"
ABOUT THE FINCAL INSTITUTIN TO SEE IF IT IS BENEFTABLE OR NOT
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What are we reffering to whe we mention inergated reporting?"
– TCFD INTIIBIVATIES NEED TO COME OUT ON THE ANNUAL REPORT –
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what does TCFD stand for?
The Financial Stability Board Task Force on Climate-related Financial Disclosures
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what is it?
is a market-driven initiative, set up to develop a set of recommendations for voluntary and consistent climate-related financial risk disclosures in mainstream filings.
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what are the components of TCFD?
Governance, strategy, risk managment , metrics and targets
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governance
the organization’s governance and climate-related risks and opportunities
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strategy
The actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning
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risk management
The processes used by the organization to identify, assess and manage climaterelated risks.
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metrics and targets
The metrics and targets used to assess and manage relevant climate-related risks and opportunities.
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example of TCFD disclosure; governance from HSBC
Mitigating climate change is key priortiy for our senior leadership, with sustanble finance metrics included in the groups strategic priorities. in 2018 there were 2 presentations on sustainability
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example of TCFD disclosure : staregy governance from HSBC
Supporting the transition to a low-carbon economy is a key part of HSBC strategy, and new products have been offered to facilitate this. along with pledge to provide 100bn of sustainable finance by 2025
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example of TCFD disclosure : risk managment from HSBC
We havw a number of sustiability risk policies - in 2018, e updated our energy policy to limit the financing of high carbon intensity energy projects while still supporting customers on their transition to a low carbon economy.
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Card 2

Front

what is an externality?

Back

an economi term referring to a cost or benefit incurred or received by a third party. However, the third party has no control over the creation of that cost or benefi

Card 3

Front

negative externality

Back

Preview of the front of card 3

Card 4

Front

positive externality:

Back

Preview of the front of card 4

Card 5

Front

what is the triple line bottom theory?

Back

Preview of the front of card 5
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