Sustainable Finance Initiative: How to engage financial markets to support sustainable development
The financial system has important functions that are decisive for achieving sustainable markets. By redirecting capital away from environmentally and socially detrimental economic activity and by channelling funds towards activity that supports a sustainable development, the financial market can play a key role in achieving the global Sustainable Development Goals. The financial market also has a key role in pricing risk – for example in the face of climate change or other sustainability issues – while at the same time being torn between short-term and long-term incentives and goals. This opens up for a myriad of research questions, some of which we are exploring at Misum.
Misum’s sustainable finance initiative is closely linked to the research of the three Misum research platforms - Business Models, Human Capital, and Accounting Frameworks - as they all relate to different ways of capital allocation for sustainable development on the micro-, meso and macro-level. Our research focus addresses the following broad questions: