What is Sustainable Finance?

Basically a financial market is a machine that takes money from
investors and distributes it to entrepreneurs that need money for their businesses. Those businesses promise a return to the investors. Depending on the business an investment comes with a certain risk. The risk and return profile of a business usually helps investors to
choose where to invest. Sustainable finance takes a look beyond the simple numbers of risk and return: It looks at the impact of the investment. Does the investment have a negative effect on environmental, social or governance aspects?

Learn more about sustainability at Frankfurt School:

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