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Many leading investment institutions - including asset managers, pension funds, and insurance companies - have made commitments to sustainable investment or to the delivery of sustainability goals alongside their investment objectives.
This mainstreaming of sustainable investment raises many important questions, such as:
¿ Do sustainable finance strategies lead to meaningful real-world change? Are fears about greenwashing justified?
¿ Does sustainable investment deliver better financial outcomes? And is it consistent with investors' fiduciary duties?
¿ Can the sustainability data and ratings used in finance be trusted? Does sustainability information drive improved sustainability performance?
¿ How should sustainable investment be governed? What are the roles and responsibilities of public and private actors.
This book unpacks the key terms, concepts and debates - both theoretical and applied - that underpin sustainable investment. Through evidence-based analysis, it cuts through the hype to critically exploring sustainable finance's transformative potential as well as its limitations. In doing so, the book enables public policymakers, financial institutions, companies, civil society organisations and academics to engage in a more informed discussion about the contribution that sustainable investment can make to sustainability goals.
List of contents
1. Introduction 2. Key Actors and Their Roles in the Investment System 3. Key Concepts in Sustainable Investment 4. Why Do We Disagree About Sustainable Finance? 5. Is Sustainable Finance Consistent with Fiduciary Duty? 6. Does Sustainable Investment Deliver Better Financial Outcomes? 7. Do Sustainable Finance Investing Strategies Lead to Better Sustainability Outcomes? 8. Are Public and Private Finance Delivering on the Goals of the Paris Agreement? 9. Do Better Company Disclosures Lead to Better Environmental Performance? 10. What is the Value of Collective Action in Sustainable Finance? 11. Can the Financial Sector Be Trusted? Greenwashing, Greenhushing and Greenwishing 12. Can the Information Provided by Data and Ratings Providers Be Relied Upon? 13. Assessing the Effectiveness of Sustainable Investment in the Global South: Gaps, Contestations and Ways Forward 14. Building a More Sustainable Investment System
About the author
Rory Sullivan is CEO, Chronos Sustainability and Visiting Professor in Practice in the Department of Geography and Environment at the London School of Economics and Political Science (LSE). Rory has advised government agencies and regulators - including in Peru, Colombia, South Africa, Malaysia and Thailand - on the development and implementation of sustainable finance policy. He has also advised many asset owners and asset managers on the development and implementation of their responsible investment and net zero strategies.
Richard Perkins is an Associate Professor in the Department of Geography and Environment at the LSE where he is the Programme Director of the MSc Environmental Policy and Regulation. He is also an Associate of the Centre for Economic Transition Expertise (CETEx) at the LSE. Richard's research examines the growing role of financial and corporate actors in governing sustainability.
