Sustainable Finance and Why It Is Vital for Businesses

Climate change is an urgent and undeniable reality affecting every dimension of human life, including economic activities.

As environment and economic activity are closely related, businesses need to be wary of any climate-induced risks that will potentially cause financial impact on their operation. For example, extreme weather events or natural disasters can cause physical damage to business assets, which consequently would disrupt production, supply chain, or even material prices. Strategic stakeholders such as the government could adapt their policy in favour of climate mitigation. Thus, businesses have to comply with the changing regulations. Meanwhile, consumers are shifting their purchasing decisions to more environmentally friendly products and services. 

As the world calls for more real climate action, businesses must start transitioning their financial practice sustainably. Not only is it good for the environment, but it would also contribute to business profitability in the long run. Let’s review sustainable finance in this post and why it is crucial to implement it. Slightly swipe the image above to read the pages.

Want to start implementing sustainable finance but need help figuring out where to begin? Explore how Tri Hita Consulting can provide your specific needs by contacting our team here.

 

📢Announcement: Tri Hita Consulting will discuss the latest OJK Regulation: CRMS Book 1-6 soon. Stay tuned to our page for further information.

 

References:

https://www.ojk.go.id/id/berita-dan-kegiatan/publikasi/Documents/Pages/Roadmap-Keuangan-Berkelanjutan-Tahap-II-%282021-2025%29/Roadmap%20Keuangan%20Berkelanjutan%20Tahap%20II%20%282021-2025%29.pdf

https://www.accountingforsustainability.org/en/about-us/why-sustainability.html 

https://www.rydoo.com/cfo-corner/sustainable-finance/

https://www.linkedin.com/advice/1/what-advantages-sustainable-finance-your-company-eal5e#:~:text=A%20third%20advantage%20of%20sustainable,your%20business%20performance%20and%20value.

https://www.theaccountant-online.com/sponsored/the-importance-of-sustainable-finance/

https://il.boell.org/en/2024/03/09/sustainable-finance-explained-concepts-advantages-and-practical-implementations 

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