Browsing by Keyword "Sustainable finance"
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Item Evaluating and managing the sustainability of investments in green and sustainable chemistry: An overview of sustainable finance approaches and tools(2022-08) Yilan, Gülşah; Cordella, Mauro; Morone, Piergiuseppe; Tecnalia Research & InnovationGreen chemistry (GC) was developed to maximise resource efficiency and minimise hazards in chemical processes and products. Over time, the approach evolved into green and sustainable chemistry (GSC), which aims at promoting the development of an ecologically friendly society. GSC encourages society's reliance on sustainable materials and technologies/processes and supports the ambitious sustainability targets set by international organisations. It also steers public attention to the provision of sustainable solutions for producers, consumers and investors. Since GSC implementation requires significant financial investment, this paper describes a broad range of approaches and tools to assess the sustainability of potential investments and shows, although with a primary focus on environmental sustainability, how life cycle approaches could be used to define enhanced key performance indicators. Thus, the paper may serve as a useful reference for: (i) chemical companies interested in evaluating the sustainability performance of activities requiring financial investment, and (ii) investors interested in evaluating the sustainability of potential financial investments.Item Evaluating and managing the sustainability performance of investments in green and sustainable chemistry: Development and application of an approach to assess bio-based and biodegradable plastics(2023-01) Yilan, Gülşah; Cordella, Mauro; Morone, Piergiuseppe; Tecnalia Research & InnovationThe state of the world urgently calls for a transition toward production and consumption partners that can support a carbon-neutral, circular and sustainable economy. Green and sustainable chemicals, especially, biodegradable and bio-based plastics, are key components of this transition. However, significant financial investments are required for the implementation of green and sustainable chemistry principles and the broader promotion of sustainability. In this regard, the financial sector needs sound approaches to assess the sustainability of investments. With this paper, we show an approach to assess the environmental performance of investments through key performance indicators calculated based on life cycle assessment. The approach is applied for the assessment of a fictitious investment aimed at financing bio-based and biodegradable plastic mulch films. The performance is assessed by comparing changes induced by the investment, compared with what would have happened without the investment (i.e., using fossil-based plastic mulch films). The application of the approach shows that the investment could be in general favourable from an environmental point of view, in particular for the promotion of a more circular and low-carbon economy. The approach could be easily adapted to reflect the specificities of a wide range of investments. However, it should be noted that other environmental, economic, and social aspects may need to be integrated to depict the sustainability performance of investments in a more comprehensive manner.Item Measuring investments progress in ecological transition: The Green Investment Financial Tool (GIFT) approach(2022-07-10) Becchetti, Leonardo; Cordella, Mauro; Morone, Piergiuseppe; Tecnalia Research & InnovationDriving and monitoring the transition toward a sustainable economy requires sound environmental and social indicators. In this paper we outline the ‘Green Investment Financial Tool’ (GIFT), an approach developed within a pilot project of the Italian government to assess the environmental performance of investments through quantitative indicators defined based on system thinking and life cycle assessment, while pursuing the fulfilment of the “Do Not Significant Harm” principle (i.e., no step back in the six environmental objectives set in the EU taxonomy for sustainable activities) as well as social safeguard requirements. We explain how the GIFT can be applied to small and medium business investments without creating competitive barriers associated with high cost of implementation. We also discuss how the approach could be potentially used in support of policy applications (e.g., enhancing green private investments, issuing green government bonds), when defining improvement objectives aligned with the EU taxonomy, and its implications for knowledge creation (monitoring and accounting). Finally, research orientations for potential future developments of the approach are addressed.