Zrównoważony rozwój w zarządzaniu finansami

Summary of Sustainable Development in Financial Management

• Causes of Sustainable Development Concept:
  • Ecological crisis
  • Civilization crisis (increasing polarization, growing weapons, wars, terrorism, influence of global capital on policies)
  • Ethical concerns (competition, selfishness, unsustainable lifestyles, disregard for future generations, unsustainable consumption)
  • Shift in worldview (cooperation, social justice, prudence, moderation, sustainability)

Nature of the Ecological Crisis

• Ecological dimension: Depletion and destruction of the biosphere due to human pressure
• Socio-economic dimension: Disruption of the balance between nature and society
• Anthropological dimension: Crisis of values and beliefs defining the purpose of life and existence

Ecological Crisis, Problems, and Catastrophes

• Ecological crisis: A state of interconnectedness between humans and nature leading to environmental changes, hindering socio-economic development and unmet human needs
• Ecological problem: Environmental change due to human or natural activities that disrupts the ecological balance and impacts organisms, ecosystems, or habitats.
• Ecological catastrophe: A situation in which the environment's carrying capacity is significantly and permanently exceeded, rendering it unsuitable for human needs

Characteristics of the Contemporary Ecological Crisis

• Global scale
• Complexity
• Change in state sovereignty and international security
• Linkages between global ecological problems and the global economy
• Ecological colonialism
• Human impact on nature exceeding Earth's boundaries
• Interdependence of global ecological crisis with the issue of war and peace.

Environment as a System, Complex System Characteristics

• Environment –everything surrounding; a relational category; three elements: subject, object (factors), interaction
• System – interconnected elements distinguished from the surroundings based on these connections
• Characteristics of complex systems: Chaotic Determinism, Dark Side of Chaos – reality is complicated, difficult to understand, unpredictable; Bright Side of Chaos – ordering emerges from simple laws, order arising from chaos (chaotic collapse); Butterfly Effect; Long-term and widespread consequences; Synergies; Dynamic stability – reaching equilibrium.

Systemic Approach Characteristics

• From realism to phenomenology (from system structure to processes within)
• From certain knowledge to approximation
• From mechanistic thinking (reversible events) to irreversible processes
• From pure rationality to incorporating intuition

Human-Environment Relationship Model

• Society
• Environment
• Economy

Principles of Sustainable Development

• Intergenerational, interregional, and intragroup equity – equal access to resources
• Integration of ecological, economic, and social systems – environmental protection as an essential part of sustainable management
• Prevention (elimination of pollution at source) and response to existing threats – preventing pollution at source, recycling, and avoiding irreversible changes in ecosystems
• Precautionary principle – actions should be taken when there is a justifiable probability of a problem requiring a solution, rather than only when fully scientifically proven
• Best available techniques and technologies (BAT) – Selecting techniques minimizing emissions and resource use, while being economically viable
• Economic and ecological effectiveness and efficiency – selecting development projects based on environmental principles, efficiency, and reduced resource use; evaluating outcomes in the long run
• Regionalization – enabling local authorities more decision-making power in regional ecological policies, adapting to local needs
• Partnership and public participation (socialization) – involving citizens and organizations in planning and implementing sustainable development, ensuring knowledge on environmental changes.
• Polluter pays principle – the polluter bears legal and financial responsibility for pollution or environmental damage

Rio Conference and its Outcomes

• United Nations Conference on Environment and Development (Earth Summit) – 1992
• Rio Declaration on Environment and Development
• Forest declaration
• UN Framework Convention on Climate Change
• Convention on Biological Diversity

Sustainable Development Goals (SDGs)

• 17 Agenda 2030 goals (presented graphically)

European Green Deal Priorities

• more ambitious climate goals for 2030 and 2050
• providing clean, affordable, and safe energy
• mobilizing the industry for a clean, circular economy
• building and refurbishing energy-efficient and resource-saving buildings
• transforming the EU economy toward a sustainable future
• promoting science and innovation
• achieving zero emissions, non-toxic environments
• protecting and restoring ecosystems and biodiversity
• Farm-to-table: fair, healthy, and environmentally friendly food system
• accelerating the transition to sustainable and smart mobility
• funding transformation

Conditions for Sustainable Environmental Activities

• contributes substantially to at least one of six environmental objectives
• does not severely harm any of the environmental objectives
• follows minimal environmental standards
• meets technical qualification criteria

Environmental Objectives Taxonomy

• climate mitigation,
• sustainable use and protection of water resources and seas,
• adaptation to climate change,
• transition to a circular economy,
• prevention of and control of pollution,
• protection and restoration of biodiversity and ecosystems

DNSH (Do No Significant Harm) Principle

• Activities must not significantly harm any environmental goal throughout their life cycle.

ESG (Environmental, Social, and Governance) Definition & Areas

• encompasses a wide range of corporate activities, and processes concerning stakeholders, interrelations with employees, and management, to ensure the pursuit of sustainable and fair goals.
• environmental (E): climate change mitigation, adaptation, energy, pollution and waste, water and marine resources, biodiversity and ecosystems, resource use and circular economy
• social (S): job conditions, safety and health, diversity, inclusion, development and training, human rights, relations with communities
• governance (G): corporate governance, culture, corruption, lobbying, relations with suppliers, data privacy and security.

Sustainable Financing Definition and Goals

• integrates environmental and societal aspects into investment decisions, aiming at investments for sustained, inclusive growth.
• redirecting capital flows to sustainable investments
• managing financial risks related to climate change, environmental degradation, and social issues
• supporting transparency and long-term sustainability in financial and business activity

Reporting Principles (ESRS)

• Double Materiality: financial materiality and impact materiality
• Due Diligence for Sustainability: identifying, preventing, mitigating, and accounting for company's actual and potential negative environmental and social impact throughout the value chain, considering relationships, products, and services.
• Value Chain Approach: requires companies to understand activities associated with product and service production, from conception to use and disposal.
• reporting includes significant information relevant to the value chain