engleski

Investments in education and training of employees

Banks and insurance companies can play an important role driving the financial market towards a sustainable and responsible economy, since they can move capital flows through an environmental direction providing consultancy or services linked to sustainable and responsible financial goals. In particular, banks can grant green loans, sell responsible investing products, such as sustainable mutual funds, green and social bonds, offer consultancy services on ESG activities to sustain environmental initiatives and projects. Insurance companies play a key role in the environmental risk management too, by covering losses with funds for recovery and reconstruction. Banks and insurance companies are able to produce both direct and indirect environmental and social impacts. As a consequence, regulators and supervisors are incentivizing the financial institutions to encourage more responsible and sustainable behaviors of their counterparties, also including ESG consideration in their risk management practices. While sustainable banks include ESG assessments into their traditional business, ethical banks are created with a specific social or environmental mission so that the loans granted are aimed to support a positive impact on society together with a sustainable financial return. In this subchapter, some financial and insurance instruments related to green and sustainable finance is analyzed. First, green loans and green bonds are presented. Insurance sector instead can contribute to reduce the overall losses regarding climate change-related extreme events, legislative regimentation, healthcare thanks to specific policies. Financial institutions are expected to play a fundamental role in encouraging preventive measures against environmental events and cooperative behavior for a social utility. The new frontier will be a strong customization of the policies and other financial products to force the customers to be environmental compliant.

Globalization ; multinational corporation ; general and specific knowledge ; lifelong learning

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