Principles of Sustainable Finance

Sustainable finance examines how capital allocation, risk assessment, and valuation methodologies can integrate environmental and social considerations alongside traditional financial analysis. Rather than replacing financial principles, it expands them to account for long-term resilience, systemic risks, and societal impacts. Understanding the foundations of sustainable finance is critical to evaluating how markets, investors, and institutions are redefining value creation in an increasingly resource-constrained and interconnected world.