Innovative green-technology SMEs as an opportunity to promote financial de-risking

Abstract

The authors recommend that the G20 target innovative green-technology SMEs as an opportunity to promote financial de-risking while addressing Paris Agreement commitments and UN Sustainable Development Goals. This should be achieved by creating signals for private investors through: (1) a reporting system that can help monitor the scale-up of green-technology SMEs; (2) the use of public funds to signal innovative green-technology SMEs to investors; and (3) the inclusion of SMEs in the design of green finance platforms. By implementing these recommendations, the G20 will ensure that innovative, low-carbon SMEs become attractive, low(er)-risk investment opportunities for the private sector.(Published as Global Solutions Paper) JEL O31 Q55 Q58 E60

Do agenda 2030 and Sustainable Development Goals act at local and operational levels? Evidence from a case study in a large energy company in Italy

“…It also represents a new way of interpreting the relationship between SDGs and PPPs, compared to that inspired by government-institutional initiatives (Kamphof & Melissen, 2018;Maslova & Sokolov, 2017) or by inter-sectoral analysis (Florini & Pauli, 2018;Stafford-Smith et al, 2017). Moreover, considering the barriers related to energy infrastructures (Bronfman, Jiménez, Arévalo, & Cifuentes, 2012;Cohen et al, 2014;Raven, Mourik, Feenstra, & Heiskanen, 2009) (Shoaf et al, 2018;Thorlakson et al, 2018;Verdolini et al, 2018), and increasing its transparency and credibility (Agarchand & Laishram, 2017;Anasi et al, 2018).…”

“…Bebbington and Unerman (2018) and Stafford‐Smith et al (2017) stress that the SDGs are also important in the accounting field. SDGs have the potential to inform and influence accounting practices and sustainability reporting (Bebbington, Russell, & Thomson, 2017) and represent an attractive invitation to act in favour of sustainability (Dressler & Bucher, 2018; Shoaf, Jermakowicz, & Epstein, 2018; Thorlakson, de Zegher, & Lambin, 2018; Verdolini, Bak, Ruet, & Venkatachalam, 2018). However, in their study of 2,413 sustainability reports, Rosati & Faria, 2019a, 2019b highlight a relatively low number of references to the SDGs contained within them.…”

Towards a comprehensive approach to climate policy, sustainable infrastructure, and finance

“…As part of creating markets to finance sustainable infrastructure and scaled-up deployment of innovation, harmonization of the disclosure of climate-related financial risk throughout the financial system will stimulate a shift of global capital and anchor climate resilience in the global financial system (Verdolini et al, 2017). Information asymmetries related to climate risk make it difficult for investors to assess the physical, regulatory and legal risks of climate change.…”

“…In order to accelerate the climate and economic spill-over benefits of public investment in innovation, sustainable finance policies must also address the broadening and deepening of markets for investment in low carbon innovation. This can be achieved by disclosure of the positive impact that investments in these projects have on climate-related financial risk (Bak, 2017; see also Verdolini et al 2017). …”

Can Canada Step into the Breach? Addressing Climate-related Financial Risk and Growing Green Finance

“…In order to accelerate the climate and economic spillover benefits of public investment in innovation, green finance policies must also address the broadening and deepening of disclosures that may open markets for investment in lowcarbon innovation. This could be achieved through disclosure of the positive impact that investments in innovative carbon-reducing projects have on climate-related financial risk (Verdolini et al 2017).…”