Essential Concepts of Sustainable Finance : An A-Z Guide book cover
1st Edition

Essential Concepts of Sustainable Finance
An A-Z Guide

  • Available for pre-order on June 12, 2023. Item will ship after July 3, 2023
ISBN 9781032316871
July 3, 2023 Forthcoming by Routledge
216 Pages 34 B/W Illustrations

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USD $46.95

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Book Description

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.

Table of Contents

Table of Contents

Sustainable Finance: A Multidimensional and Multi-actor Framework *

Visual Codes of Sustainable Finance Concepts *

2030 Agenda for Sustainable Development *

Active Engagement *

Active Ownership *

Active Voting *

Anthropogenic Climate Change *

Anthropogenic Emission *

Baseline and Credit Mechanism *

Best-in-Class Screening *

Best-in-Universe Screening *

Biocapacity *

Biodiversity *

Biodiversity Finance *

Biodiversity Intactness Index (BII) *

Biodiversity Loss *

Biosphere Integrity *

Blended Finance *

Blue Bonds *

Blue Economy *

Blue Finance *

Brown Economy *

Brown Taxonomy *

Brundtland Report *

Business Sustainability *

Business-as-Usual *

Cap and Trade System *

Carbon Allowance *

Carbon Bubble *

Carbon Credit *

Carbon Dioxide (CO2) *

Carbon (Dioxide) Capture *

Carbon (Dioxide) Capture & Storage (CCS) *

Carbon (Dioxide) Capture & Utilization (CCU) *

Carbon Dioxide Equivalent (CO2e) *

Carbon Emission *

Carbon Emission Permit *

Carbon Finance *

Carbon Footprint *

Carbon Leakage *

Carbon Markets *

Carbon Neutrality *

Carbon Offsetting *

Carbon Price *

Carbon Removal / Carbon Dioxide Removal (CDR) *

Carbon Sequestration *

Carbon Sink *

Carbon Taxation *

Chief Sustainability Officer *

Circular Economy *

Climate *

Climate Change *

Climate Change Adaptation *

Climate Change Mitigation *

Climate Crisis *

Climate Disclosure Standards Board (CDSB) *

Climate Finance *

Climate Neutrality *

Climate Stress Test / Testing *

Climate-related Risk (CrR) *

Common Good Value *

Community Investing *

Conference of the Parties (COP) *

Corporate Citizenship *

Corporate Engagement *

Corporate Governance *

Corporate Social Responsibility *

Corporate Sustainability *

Decarbonization *

Development Finance *

Diversity, Equity, and Inclusion *

Double Materiality *

Doughnut Economics *

Dynamic Materiality *

Earth Overshoot Day *

Earth System *

Ecological Footprint *

Ecosystem Services *

Emission Allowance *

Emission Trading *

Emissions Trading System *

Enlightened Shareholder Value (ESV) *

Environmental Capital *

Environmental Economics *

Environmental Externalities *

Environmental Factors (E of ESG) *

Environmental Finance *

Environmental Footprint *

Environmental Kuznets Curve *

Environmental Risk *

Environmental Taxonomy *

Environmental, Social, and Governance Factors / ESG Factors / ESG Criteria *

Equator Principles *

ESG Analysis *

ESG Engagement *

ESG Fund *

ESG Incorporation *

ESG Integration *

ESG Investing/Investment *

ESG Rating *

ESG Reporting *

ESG Risks *

ESG Voting *

Ethical Investment / Ethical Investing *

EU Taxonomy for Sustainability *

Exclusionary Investing *

Exclusionary Screening *

Externalities *

Finance-as-Usual *

Financial Inclusion *

Financial Materiality *

Fossil Fuel *

Global Reporting Initiative *

Global Warming *

Global Warming Potential (GWP) *

Governance Factors (G of ESG) *

Green Asset Ratio (GAR) *

Green Assets *

Green Bond Principles *

Green Bonds *

Green Company *

Green Economy *

Green Equities *

Green Finance *

Green Fintech Taxonomy (Green Fintech Classification) *

Green Growth *

Green Investment *

Green Lease, Green Leasing *

Green Loan *

Green Loan Principles *

Green Mortgage *

Green Premium *

Green Project *

Green Taxonomy *

Green Water *

Greenhouse Effect *

Greenhouse Gas Emission (GHG Emission) *

Greenhouse Gas Neutrality *

Greenhouse Gas Protocol (GHG Protocol) *

Greenhouse Gases (GHGs) *

Greenium *

Greenwashing, Greenwash *

Impact Finance *

Impact Investing *

Impact Lending *

Impact Loan *

Impact Materiality *

Impact Measurement and Management *

Inclusionary Investing *

Inside-out Perspective *

Integrated Report *

Integrated Reporting *

Integrated Thinking *

Integrated Value *

Integrated Value Creation (IVC) *

Intergovernmental Panel on Climate Change *

Internalization *

International Integrated Reporting Council (IIRC) *

International Sustainability Standards Board (ISSB) *

Katowice Climate Package *

Keeling Curve *

Kyoto Protocol *

Land Degradation *

Land Degradation Neutrality *

Land-system Change *

Land-use Change *

Life Cycle Assessment *

Linear Consumption *

Linear Economy *

Linear Production *

Long-term Value Creation (LTVC) *

Materiality *

Microcredit *

Microfinance *

Microinsurance *

Microloan *

Millennium Development Goals *

Montreal Protocol *

Nationally Determined Contributions *

Natural Capital *

Natural Resource *

Negative Emission *

Negative Externalities *

Negative Screening *

Net Zero Economy *

Net Zero Emission *

Non-Financial Information *

Non-Financial Reporting *

Norms-based Screening *

OECD Guidelines for Multinational Enterprises *

Outside-in Perspective *

Paris Agreement *

Parts per Million (ppm) *

Physical Risk *

Pieconomics *

Pigouvian Tax *

Planetary Boundaries *

Planetary Boundaries Framework *

Porter Hypothesis *

Positive Externalities *

Positive Screening *

Principles for Responsible Banking *

Principles for Responsible Investment (PRI) *

Principles for Sustainable Insurance (PSI *

Race to Zero *

Renewable Energy *

Responsible Consumption *

Responsible Investment *

SASB Standards *

Scope 1 GHG Emissions *

Scope 2 GHG Emissions *

Scope 3 GHG Emissions *

Shareholder Action *

Shareholder Activism *

Shareholder Primacy *

Shareholder Value *

Short Termism *

Sin Company *

Sin Stock *

Social Bank *

Social Bonds *

Social Externalities *

Social Factors (S of ESG) *

Social Finance *

Social Taxonomy *

Socially Responsible Investment (SRI) *

Stakeholder Capitalism *

Stewardship *

Stranded Asset *

Sustainability *

Sustainability Accounting Standards Board (SASB) *

Sustainability Disclosure *

Sustainability Index *

Sustainability Linked Loans *

Sustainability Linked Loan Principles *

Sustainability Rankings *

Sustainability Rating Providers *

Sustainability Ratings *

Sustainability Reporting *

Sustainability Risks *

Sustainability Science *

Sustainability Score *

Sustainability Taxonomy *

Sustainability Transformation *

Sustainability Transition *

Sustainability-themed Investing *

Sustainable Business Model *

Sustainable Development *

Sustainable Development Goals (SDGs) *

Sustainable Digital Finance *

Sustainable Finance *

Sustainable Finance Forms *

Sustainable Finance Literacy *

Sustainable Finance Stages *

Sustainable Finance Taxonomy *

Sustainable Finance Technology (SuFTech) *

Sustainable Insurance *

Sustainable Investing, Sustainable Investment, Sustainability Investment (SI) *

Sustainable Investment Fund *

Sustainable Investment Strategies *

Sustainable Lending *

Taxonomy *

Thematic Investing *

Tradable Emission Permit *

Tradable Emission Right *

Transition Finance *

Transition Management *

Transition Risk *

Triple Bottom Line *

Twin Transformation *

United Nations Framework Convention on Climate Change (UNFCCC) *

United Nations Global Compact *

United Nations Guiding Principles for Business and Human Rights *

Value Reporting Foundation *

Values-based Banking *

Contributors *

Appendix – List of International Organizations in Sustainable Finance *






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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, 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 E. Sancak is both an academic and a finance professional with more than twenty 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 U.S.), and Ph.D. in banking from Marmara University (Turkey). Prof. Sancak also holds three certificates from the U.S. 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.”

Prof. Dr. 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 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)