Sustainable finance has several definitions. One of the most commonly adopted is the one proposed by the G20 Sustainable Finance Study Group , which says:
Sustainable finance can be broadly understood as financing as well as related institutional and market arrangements that contribute to the achievement of strong, sustainable, balanced and inclusive growth, through supporting directly and indirectly the framework of the Sustainable Development Goals (SDGs). A proper framework for sustainable finance development may also improve the stability and efficiency of the financial markets by adequately addressing risks as well as market failures such as externalities.
What are sustainability risks?