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KATHMANDU, APRIL 18
Green and social finance - investment capital specifically targeted toward positive environmental goals such as clean energy and social goals such as low-cost housing for the poor - has expanded rapidly in recent years.
Investing in businesses that are both profitable and beneficial to society are clearly becoming more popular but are they achieving the noble goals they espouse?
It is a difficult question to answer because there are inconsistent definitions across markets and a lack of common information disclosure and impact measurement methods.
In addition, measuring the impact of sustainable finance is challenging, especially for social impacts that tend to be broad.
This lack of credible information about impacts of such investments creates concerns about the potential overstatement of green and social impact, or "impact washing".
Regulators and authorities are working to strengthen disclosure and impact measurement methods to address such concerns.
At the same time, it is important to understand the extent to which social finance contribute to SDGs.
A version of this article appears in the print on April 19, 2022, of The Himalayan Times
