Question

a. What is Sustainable Finance?

b. How is Corporate Sustainability usually measured? List three factors and give an example of each

c. How reliable do you think reporting by companies is on Corporate Sustainability? What could improve this reliability?

Answer 1

Answer(a): Sustainable Finance- It is the finance in business that takes environmental, Governmental and social criteria all together so that it ca be win win situation for all and benefit for company, customers and society. Inventing into business, not just for financial return but welfare for the environment and society is called sustainable finance. It includes corporate social responsibility.

A sustainable financial business contributes to sustain development and value creation in environmental and social terms. A company should contribute in the society, it should keep its stakeholders happy. Stakeholders are the people who are directly or indirectly related to company.

Answer(b): Factors that measure corporate sustainability-

Social factors- Social well being, charity, donation, free food and shelter to poor children and ladies, girl's education, women's education, some efforts to the people who are living below poverty line.

Environmental factors- Companies activities like "Cleanliness, plantation, less or no pollution, no use of plastic etc" help them to achieve corporate sustainability.

Economical factors- Performing well in the market, paying taxes on time, no tax evasion, effective, true and transparent financial reporting, optimal utilization of available resources etc.

Answer(c): Reporting by companies has impact on corporate sustainability, companies should report their financial statement on time and these should be accurate, true, transparent and reliable because financial statement make investors able to take the investing decisions and make creditors able to give loan to company. Company should not do window dressing in financial statement and they should be free from any misstatement.