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Sustainable finance is that which conditions economic growth towards more humane and balanced development. There are three types within sustainable finance:

  • Socially Responsible Investment (SRI): investments that include environmental, social and governance criteria other than strictly economic ones (risk, profitability and liquidity). Also included are impact investments, whose purpose is to generate social and environmental impact as well as financial return.
  • Ethical banking: banks that carry on their activity following from the outset the criteria of transparency, democracy and sustainability, together with the financial criteria of traditional banking.
  • Microfinance: provides basic financial services to groups at risk of financial exclusion (current accounts, debit cards, loans, etc.). The aim is to include these groups in the financial aspects.

In turn, sustainable finance allows the use of different financing products which promote sustainable development:

  • Pension and investment funds: investment and savings instruments made up of the assets of a group of individual investors and managed by a management company.
  • Green and social bonds: public or private debt issues focused on financing projects with a positive environmental or social impact.
  • Social risk capital: investments with sustainability criteria in non-listed companies.
  • Microcredits: small loans for entrepreneurship or business development with difficulty in accessing financing, the objective of which is to promote self-employment at the social level.