Finance in Transition
Loorbach, D., D. Schoenmaker and W. Schramade (2020), Finance in Transition: Principles for a positive finance future, Rotterdam School of Management, Erasmus University, Rotterdam.
100 Pages Posted: 19 Jan 2021
Date Written: November 18, 2020
Finance in Transition discusses the transition from traditional finance to transition finance. The current pattern of unsustainable economic development is supported by the global financial system, whose goal function is to create ever more financial value. Traditional finance is based on the concept of shareholder value.
This paper develops new principles for a sustainable financial system. These guiding principles are: 1) from shareholder to integrated value, which combines financial, social and environmental value; 2) stewardship based on a direct link between financiers and companies; and 3) capital allocation based on long-term societal value.
Keywords: Financial, Social and Environmental Risks and Value, Transition, Sustainable Finance, Sustainable Development
JEL Classification: G11, G21, H23, H41, Q01
Suggested Citation: Suggested Citation