Sustainable finance: our financial decisions can improve the world
28/12/2023
As a user of financial services, you can choose where to invest your money or which products you purchase. When making an investment, taking out a loan or an insurance policy or selecting a pension product, you can select firms and projects that are socially responsible or contribute to protecting the environment and the transition towards a more sustainable economy. In this way, you can consider not only your own benefit, but also environmental, social and governance factors.
For instance, you might opt for a fund that invests in firms that recycle household waste or take out a loan to purchase an energy-efficient home.
What exactly is a financial product with sustainability features?
Banks, asset managers, insurance companies, pension funds and other financial firms offer products with specific sustainability characteristics, such as:
- Loans that support environmentally responsible projects, such as purchasing zero-emissions vehicles, buying environmentally sustainable homes or funding energy efficiency renovations.
- Investments in specific shares and bonds issued by, for example, firms that keep CO2 emissions very low or show genuine commitment to their employees and local communities.
- Investment funds, life insurance and pension plans that make sustainable investments. For example, a fund might invest in shares of firms that generate electricity from wind, solar or hydro sources.
If you want to learn more, you can refer to this guideAbre en ventana nueva published by the three European authorities (the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority) in collaboration with the national authorities.
You can find more resources on sustainable finance here:
