In News
- Recently, the RBI Deputy Governor stressed on the need for regulated entities to assess climate-linked financial risks along with a demand for a formal definition of green finance.
About
- What is Environmental, social, and governance (ESG)?
- These investments are types of socially responsible investing that consider the impact on the environment, its stakeholders, and the planet in addition to the performance of the investment.Â
- What is green financing?Â
- It refers to lending to environmentally sustainable economic activities.
- What is Greenwashing?Â
- Greenwashing refers to dishonest practices designed to deceive people.
- When a firm spends more effort and money on presenting itself as environmentally friendly than on minimizing its environmental impact, this is referred to as greenwashing.Â
- It is a deceptive marketing ploy meant to deceive investors who prefer investments with a positive environmental impact and attempt to capitalize on the growing demand for environmentally sound products.Â
- Need?
- There is a need for regulated entities to develop and implement comprehensive frameworks for understanding and assessing the potential impact of climate-related financial risks in their business strategy and operations.
Source: TH
