Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 14, 2022 erstellt
Beschreibung:
We introduce the Carbon Equivalence Principle that requires carbon-equivalent flows enabled, or caused, by a financial product to have equal status with cashflows. This reveals that existing financial products already have environmental impact and so are ESG-linked, without the need for any add-on terms. Where carbon flows are material, products need analysis and redesign to achieve financial net-zero. We show a typical approach, which includes carbon sequestration to achieve sustainability alignment