Integrating sustainability risks - Implications of the ESMA consultation paper on the integration of sustainability risks and factors

E-print/Working paper (2019)

The private equity sector has been increasingly adopting responsible investment practices, with investors being the initial driving force. According to the Global private equity survey conducted by PwC in ... [more ▼]

The private equity sector has been increasingly adopting responsible investment practices, with investors being the initial driving force. According to the Global private equity survey conducted by PwC in 2017, 60% of all private equity firms questioned (111 general partners from 22 countries) stated that they have incorporated ESG (Environmental, Social and Governance) factors within their initial screening process. 44% of them aim to align their sustainability efforts to the UN Sustainable Development Goals. [less ▲]

Microfinance within the theoretical framework of Sustainable Development – A blessing and a curse

Bachelor/master dissertation (2016)

According to the agenda of the Sustainable Development Goals developed by the United Nations, poverty is one of the most significant issues worldwide. Microfinance has emerged in a phenomenal hype as a ... [more ▼]

According to the agenda of the Sustainable Development Goals developed by the United Nations, poverty is one of the most significant issues worldwide. Microfinance has emerged in a phenomenal hype as a panacea for alleviating poverty and empowering the disempowered. Poor people without access to financial services were offered microcredits in order to lift them out of poverty. This approach has been used for over 30 years now and this extended essay raises the question whether the practices and principles of microfinance as used today have strayed away from the original approach, thus from the framework of Sustainable Development. Consequently, the following question arises: Can an inclusive framework of Sustainable Development provide a sound justification for the practices and principles of microfinance as applied today? With growing commercialization of microfinance and hence, incorporation into the conventional financial sector, a third research question must be asked, namely whether the financial sector itself is inclusive and aligns with the framework of Sustainable Development as outlined. Within this essay, it is revealed that microfinance is on a path of divergence from its initial goals and objectives and thereby focuses more and more on economic benefits, which goes against the concept of Sustainable Development considering the interlinkage of economic, social and environmental aspects. In the same way, the financial system, which microfinance seems to align ever more closely with, features some controversies which essentially detach the financial sector from a Sustainable Development framework. This study comes to the conclusion that microfinance has emerged as an alternative approach, but has been changed by and incorporated into the neoliberal system in the same way as the financial system. Essentially, more research is needed on the effectiveness of microfinance in order to make use of it as one of many interventions to meet the global challenges of Sustainable Development. [less ▲]