What is Sustainable Finance?

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Sustainable finance is the broadest term, covering all financing activities that contribute to sustainable development. This Finance covers ESG investing, social finance (e.g., social bonds), and sustainability-linked loans. This framework integrates Environmental, Social, and Governance (ESG) practices into financial decisions for long-term sustainability, which impacts society and the planet at large. Sustainable Finance includes financial products like bonds and ESG Funds that fall under the purview of global goals like the Paris Agreement and Sustainable Development Goals (SDGs).