Sustainable Finance refers to financial practices and investments that prioritize environmental, social, and governance (ESG) criteria alongside economic goals. It aims to reallocate capital to projects and businesses that have positive impacts on society and the environment, while also generating financial returns. This concept encompasses a range of financial activities, including sustainable investing, green bonds, impact investing, and ESG risk management. Sustainable finance seeks to address global challenges such as climate change, social inequality, and resource depletion by integrating sustainability into the financial decision-making process. The goal is to promote long-term economic growth that is environmentally sustainable and socially responsible.
Pontegadea, the investment company of Zara’s founder, Amancio Ortega, has significantly increased its focus on sustainable energy projects in recent years. Diverging from traditional investment avenues, the company has been…