When learning about sustainable finance it is vital to be knowledgeable about the financial market. A financial market can be compared to a device that gets money from Investors and will distribute it to entrepreneurs who needs money for their businesses. In return, these businesses will promise money to the investors. Depending on the business these investments come with some risks. Many investors rely so much on the Risk or Return Profile. This is when sustainable finance comes in. Sustainable finance is responsible in checking the risk and return of any investment. How this investment can impact any potential investor?
Sustainable Finance is also responsible to look in the following. What is the effect of the investment on the following?
- Environmentally
- Socially
- Politically
These impact related issues is very vital in the decision making of investors and matters in the risk profile. Many investors prefer a more sustainable investment since it showcases a whole new perspective to investors.