Financial system and its contribution to climate change: sustainable finance as a leverage for change

Abstract

In the fight against climate change, companies and financial markets play a very important role. They are important as well as in managing the risks that this situation entails than in managing new opportunities for growth and development. In order to do this, in a first phase of this study, a qualitative analysis will examine how different instruments of SRI market (investment funds, initiatives, indices and rating agencies) are integrating aspects related to the fight against climate change. Subsequently, in a second phase, through a quantitative analysis, it will try to demonstrate if yield and risk of sustainability thematic funds are better than conventional ones by incorporating the climate criterion. The results of the research show that financial market is increasingly integrating the climate change aspect into its valuation models and investment products, which offer a good behaviour in terms of risk - return.