Sustainability: Difference between revisions
imported>Doug Williamson (Re-order links.) |
imported>Doug Williamson (Expand first sentence.) |
||
| Line 1: | Line 1: | ||
Sustainability has two important dimensions in treasury and finance. | Sustainability has two important dimensions in treasury and finance, environmental sustainability and financial sustainability. | ||
| Line 29: | Line 29: | ||
* [[SRA]] | * [[SRA]] | ||
* [[SRI]] | * [[SRI]] | ||
* [[Sustainable Development Goals]] | |||
* [[Sustainability Accounting Standards Board]] | * [[Sustainability Accounting Standards Board]] | ||
* [[Sustainability bond]] | * [[Sustainability bond]] | ||
[[Category:Ethics]] | [[Category:Ethics]] | ||
Revision as of 21:37, 1 December 2018
Sustainability has two important dimensions in treasury and finance, environmental sustainability and financial sustainability.
Environmental sustainability
Environmental sustainability involves making decisions and taking actions which expressly take responsibility for the impact on the environment, and avoid depleting or degrading natural resources such as soil, water, forests, and biological diversity.
Financial sustainability
Financial sustainability is achieved when an organisation is able to earn sustainable financial surpluses and generate cash in the medium and longer-term.
For example in order to pay back borrowings, with interest, over time.
Historically, it was generally considered that there was a conflict between environmental sustainability and financial sustainability.
Arguably though, it is perhaps only environmentally sustainable businesses which are fully financially sustainable.
This proposition suggests that there need be no conflict between an organisation’s environmental and financial objectives, when a sufficiently long-term view is taken.
