Blended Finance: Unlocking Commercial Finance forSustainable Development

Here is my piece on Blended Finance, published in Artha, the IIM Calcutta finance journal. With investment needs to move to a green economy exceeding $1 trillion a year by 2030, governments and international agencies will find it challenging to fund this. Thus private and public finance will need to join hands. Blended finance blendsContinue reading “Blended Finance: Unlocking Commercial Finance forSustainable Development”

Financed Emissions

Banks play a dual role. At one end, they finance decarbonisation; at the other, they finance emissions through loans and investments. Thus, financed emissions are the greenhouse gas (GHG) emissions linked to the investment and lending activities of financial institutions like investment managers, banks and insurers. It’s the carbon footprint of a firm’s investments orContinue reading “Financed Emissions”

Spatial finance and sustainability

Satellite technology has become ubiquitous. Satellite imagery has made geospatial data available like never before. Coupled with the increasing availability of real-time geospatial data and advances in artificial intelligence, data-driven decision-making can help fight the climate crisis. The term “spatial finance” was coined by the Smith School of Enterprise and the Environment at the UniversityContinue reading “Spatial finance and sustainability”

Green Deposits 101

The Reserve Bank of India has announced the framework for accepting green deposits of regulated entities (RE). What is a green deposit? A green deposit is an interest-bearing deposit received by the regulated entity for a fixed period and the proceeds are earmarked for being allocated towards green finance. These are like your regular fixedContinue reading “Green Deposits 101”

Market Reaction to Corporate ESG News

A recent paper by George Serafeim and Aaron Yoon explores the market reaction to different ESG news. They analyze the market reaction to ESG news for 3,109 companies. They find that prices react only to financially material ESG news, and the reaction is larger for news that is positive, receives more news coverage, and isContinue reading “Market Reaction to Corporate ESG News”