Sustainable finance -- Basic concepts and key initiatives

This document provides a non-exhaustive list of relevant basic concepts, key initiatives and terms that are in common use in the global community of sustainable finance, and have been identified by ISO/TCÂ 322Â as helpful to facilitate a greater understanding of the topics suggested by sustainable finance practitioners, including but not limited to: financial regulators, development and commercial banks, asset managers, investors, international initiatives and researchers. The terms included in this document have been selected because they are: widely accepted and used in financial markets; sourced from supranational organization(s) or initiative(s), or national regulatory authorities; NOTEÂ Â Â Â Â Â Â Â Â Â Â With priority given to the source with the larger geographic coverage. likely to be used in documents from ISO/TCÂ 322 and other related International Standards; of international prevalence and interest.

Finance durable -- Concepts de base et initiatives clés

Le présent document fournit une liste non exhaustive de concepts de base, d’initiatives clés et de termes couramment utilisés dans la communauté mondiale de la finance durable. Il s’agit d’éléments considérés utiles par l’ISO/TC 322 pour permettre une meilleure compréhension des sujets abordés par les acteurs de la finance durable qui incluent, sans s’y limiter, régulateurs financiers, banques de développement et banques commerciales, gestionnaires d’actifs, investisseurs, initiatives internationales et centres de recherche. Les termes figurant dans le présent document ont été sélectionnés pour les raisons suivantes: largement reconnus et utilisés au sein des marchés financiers; issus d’une ou de plusieurs organisations ou initiatives supranationales, ou d’autorités de régulation nationales; NOTE           Priorité est donnée à la source couvrant la zone géographique la plus étendue. susceptibles d’être utilisés dans des documents élaborés par l’ISO/TC 322 et d’autres Normes internationales connexes; caractérisés par leur prévalence et leur intérêt au niveau international.

General Information

Status
Published
Publication Date
16-Aug-2021
Current Stage
5060 - Close of voting Proof returned by Secretariat
Start Date
31-May-2021
Completion Date
31-May-2021
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TECHNICAL ISO/TR
REPORT 32220
First edition
2021-08
Sustainable finance — Basic concepts
and key initiatives
Finance durable — Concepts de base et initiatives clés
Reference number
ISO/TR 32220:2021(E)
ISO 2021
---------------------- Page: 1 ----------------------
ISO/TR 32220:2021(E)
COPYRIGHT PROTECTED DOCUMENT
© ISO 2021

All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may

be reproduced or utilized otherwise in any form or by any means, electronic or mechanical, including photocopying, or posting

on the internet or an intranet, without prior written permission. Permission can be requested from either ISO at the address

below or ISO’s member body in the country of the requester.
ISO copyright office
CP 401 • Ch. de Blandonnet 8
CH-1214 Vernier, Geneva
Phone: +41 22 749 01 11
Email: copyright@iso.org
Website: www.iso.org
Published in Switzerland
ii © ISO 2021 – All rights reserved
---------------------- Page: 2 ----------------------
ISO/TR 32220:2021(E)
Contents Page

Foreword ........................................................................................................................................................................................................................................iv

Introduction ..................................................................................................................................................................................................................................v

1 Scope ................................................................................................................................................................................................................................. 1

2 Normative references ...................................................................................................................................................................................... 1

3 Terms and definitions ..................................................................................................................................................................................... 1

4 Basic concepts ......................................................................................................................................................................................................... 1

5 Principles, guidelines and regulation ..........................................................................................................................................11

6 Financial products and services ........................................................................................................................................................22

7 Verification, reporting and disclosure ........................................................................................................................................26

8 International initiatives and organizations ..........................................................................................................................28

Annex A (informative) Related ISO committees and directly related standalone standards .................35

© ISO 2021 – All rights reserved iii
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ISO/TR 32220:2021(E)
Foreword

ISO (the International Organization for Standardization) is a worldwide federation of national standards

bodies (ISO member bodies). The work of preparing International Standards is normally carried out

through ISO technical committees. Each member body interested in a subject for which a technical

committee has been established has the right to be represented on that committee. International

organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.

ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of

electrotechnical standardization.

The procedures used to develop this document and those intended for its further maintenance are

described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the

different types of ISO documents should be noted. This document was drafted in accordance with the

editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/ directives).

Attention is drawn to the possibility that some of the elements of this document may be the subject of

patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of

any patent rights identified during the development of the document will be in the Introduction and/or

on the ISO list of patent declarations received (see www .iso .org/ patents).

Any trade name used in this document is information given for the convenience of users and does not

constitute an endorsement.

For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and

expressions related to conformity assessment, as well as information about ISO’s adherence to the

World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT), see www .iso .org/

iso/ foreword .html.

This document was prepared by Technical Committee ISO/TC 322, Sustainable finance.

Any feedback or questions on this document should be directed to the user’s national standards body. A

complete listing of these bodies can be found at www .iso .org/ members .html.
iv © ISO 2021 – All rights reserved
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ISO/TR 32220:2021(E)
Introduction

The practice of sustainable finance is evolving fast and is being endorsed by an increasing number of

regions, countries and economic entities with different focuses. Given this dynamic, there is a need

to inform users about basic concepts, key initiatives and terms in common use, in order to facilitate

communication among various types of financial market participants and stakeholders across wide

geographic regions.

To compile this document, many information sources were reviewed. These included international,

regional and national policies and frameworks, official websites and publications by multilateral

development financial institutions, international initiatives and organizations which contribute to

promoting, enabling and harmonizing sustainable finance practices worldwide, academic literature

and related International Standards.

Inclusion in this document demonstrates that a term has been widely accepted and used in the global

community of sustainable finance. However, its definition has not been formally endorsed through the

consensus-building process used for developing International Standards.

Each term includes at least one accessible source for its definition. Some terms refer to one or more

reference sources to provide the context for the definition. To improve ease of use, the listed key

sustainable finance concepts, initiatives and terms are grouped into five clauses:

— basic concepts (see Clause 4);
— principles, guidelines and regulation (see Clause 5);
— financial products and services (see Clause 6);
— verification, reporting and disclosure (see Clause 7);
— international initiatives and organizations (see Clause 8).

Additionally, the liaison ISO committees of ISO/TC 322 and standalone standards directly related to

sustainable finance are listed in Annex A.
© ISO 2021 – All rights reserved v
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TECHNICAL REPORT ISO/TR 32220:2021(E)
Sustainable finance — Basic concepts and key initiatives
1 Scope

This document provides a non-exhaustive list of relevant basic concepts, key initiatives and terms

that are in common use in the global community of sustainable finance, and have been identified by

ISO/TC 322 as helpful to facilitate a greater understanding of the topics suggested by sustainable

finance practitioners, including but not limited to: financial regulators, development and commercial

banks, asset managers, investors, international initiatives and researchers.
The terms included in this document have been selected because they are:
— widely accepted and used in financial markets;

— sourced from supranational organization(s) or initiative(s), or national regulatory authorities;

NOTE With priority given to the source with the larger geographic coverage.

— likely to be used in documents from ISO/TC 322 and other related International Standards;

— of international prevalence and interest.
2 Normative references
There are no normative references in this document.
3 Terms and definitions
No terms and definitions are listed in this document.

ISO and IEC maintain terminological databases for use in standardization at the following addresses:

— ISO Online browsing platform: available at https:// www .iso .org/ obp
— IEC Electropedia: available at http:// www .electropedia .org/
4 Basic concepts

This clause outlines the basic concepts related to sustainable finance. In some instances, one source has

been cited, but in others several sources have been identified as appropriate, e.g. the term “sustainable

finance” has been used in many ways and this document identifies the four most appropriate

descriptions.
© ISO 2021 – All rights reserved 1
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ISO/TR 32220:2021(E)
sustainable finance

financing as well as related institutional and market arrangements that contribute to the

achievements of strong, sustainable, balanced and inclusive growth, through supporting directly and

indirectly the framework of the United Nations (UN) Sustainable Development Goals (SDGs)

[SOURCE: G20 Sustainable Finance Synthesis Report, Introduction, July 2018]

the process of taking environmental, social and governance (ESG) considerations into account when

making investment decisions in the financial sector, leading to more long-term investments in

sustainable economic activities and projects

[SOURCE: European Commission website. Available from [last accessed 2021-05]: https:// ec .europa

.eu/ info/ business -economy -euro/ banking -and -finance/ sustainable -finance/ overview -sustainable

-finance _en]
application of financial services to achieve the goal of sustainability

[SOURCE: PAS 7340:2020, Framework for embedding the principles of sustainable finance in financial

services organizations. Guide, 2.26]

incorporation of environmental, social, and governance (ESG) principles into business decisions,

economic development, and investment strategies

[SOURCE: International Monetary Fund. Global Financial Stability Report: Lower for Longer, Chapter

6: Sustainable Finance, October 2019. Available from: https:// www .elibrary .imf .org/ view/ books/

082/ 26206 -9781498324021 -en/ 26206 -9781498324021 -en -book .xml ?language = en & redirect = true

#references]
sustainability

state of the global system, including environmental, social and economic aspects, in which the needs

of the present are met without compromising the ability of future generations to meet their own

needs
[SOURCE: ISO 20400:2017, Sustainable procurement — Guidance, 3.33]
Further detail:

— The environmental, social and economic aspects interact, are interdependent and are often

referred to as the “three dimensions of sustainability”.
— Sustainability is the goal of sustainable development.
Sustainable Development Goals (SDGs)

The blueprint to achieve a better and more sustainable future for all. They address the global

challenges we face, including those related to poverty, inequality, climate change, environmental

degradation, peace and justice.

[SOURCE: UN SDGs website. Available from [last accessed 2021-03]: https:// www .un .org/ sus

tainablede velopment/ sustainable -development -goals/ ]
Further detail:

— The 17 goals are all interconnected and, in order to leave no one behind, it is important that all of

them are achieved by 2030.
2 © ISO 2021 – All rights reserved
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ISO/TR 32220:2021(E)
sustainability taxonomy

classification system identifying activities, assets and revenue segments that deliver on key

sustainability goals based on the eligibility conditions set out by the taxonomy

[SOURCE: PAS 7340:2020, Framework for embedding the principles of sustainable finance in financial

services organizations. Guide, 2.24]
Further detail:

— Designed as a framework onto which existing (and future) definitions that are used in a variety of

contexts can be mapped, enabling comparability of different standards and products.

— A taxonomy is a framework that can be applied to a variety of financial instruments.

— The classification system is an evolving tool that requires continuous review and updating.

green finance

financing of investments that provide environmental benefits in the broader context of

environmentally sustainable development

[SOURCE: G20 Green Finance Study Group. G20 Green Finance Synthesis Report, Summary, July 2016.

Available from: http:// www .g20 .utoronto .ca/ 2016/ green -finance -synthesis .pdf]

financial services provided for economic activities that are supportive of environment improvement,

climate change mitigation and more efficient resource utilization

[SOURCE: The People’s Bank of China et al. Guidelines for Establishing the Green Financial System

(Yinfa 2016 Doc No. 228), 2016. Available from: http:// www .pbc .gov .cn/ english/ 130721/ 3133045/

index .html]
Further detail:

— These economic activities include the financing, operation and risk management for projects in

areas such as environmental protection, energy savings, clean energy, green transportation and

green buildings.
climate finance

local, national or transnational financing—drawn from public, private and alternative sources of

financing—that seeks to support mitigation and adaptation actions that will address climate change

[SOURCE: UNFCCC Website. Available from [last accessed 2021-03]: https:// unfccc .int/ topics/ climate

-finance/ the -big -picture/ introduction -to -climate -finance]
social finance

financing that supports actions mitigating or addressing a specific social issue and/or seeking to

achieve positive social outcomes especially but not exclusively for a target population(s)

[Adapted from source: ICMA. Sustainable Finance High-level definitions, May 2020. Available from:

https:// www .icmagroup .org/ assets/ documents/ Regulatory/ Green -Bonds/ Sustainable -Finance -High

-Level -Definitions -May -2020 -110520v4 .pdf]
© ISO 2021 – All rights reserved 3
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ISO/TR 32220:2021(E)
microfinance

Loans, savings, insurance, transfer services and other financial products targeted at low-income

clients.

[SOURCE: Wegner, L. (2006), "Microfinance: How Bankers Could Buy Back Their Soul", OECD

Development Centre Policy Insights, No. 31, OECD Publishing, Paris, https:// doi .org/ 10 .1787/

244828638578]
blended finance

the strategic use of development finance for the mobilisation of additional finance towards

sustainable development in developing countries

[SOURCE: Wegner, L. (2006), "Microfinance: How Bankers Could Buy Back Their Soul", OECD

Development Centre Policy Insights, No. 31, OECD Publishing, Paris, https:// doi .org/ 10 .1787/

244828638578]
official development assistance (ODA)

government aid that promotes and specifically targets the economic development and welfare of

developing countries

[SOURCE: OECD website. Available from [last accessed 2021-03]: https:// www .oecd .org/ dac/

financing -sustainable -development/ development -finance -standards/ official -development -assistance

.htm]
Further detail:

— ODA is flows to countries and territories on the DAC List of ODA Recipients and to multilateral

development institutions that are: a) provided by official agencies, including state and local

governments, or by their executive agencies; and b) concessional (i.e. grants and soft loans)

and administered with the promotion of the economic development and welfare of developing

countries as the main objective.

— DAC List of ODA Recipients: https:// www .oecd .org/ dac/ financing -sustainable -development/

development -finance -standards/ daclist .htm
ESG investing (responsible investing)

strategies and practices that incorporate material ESG factors in investment decisions and active

ownership with a view to minimize risks and maximize returns

[SOURCE: ICMA. Sustainable Finance High-level definitions, May 2020. Available from: https:// www

.icmagroup .org/ assets/ documents/ Regulatory/ Green -Bonds/ Sustainable -Finance -High -Level

-Definitions -May -2020 -110520v4 .pdf]
Further detail:
— ESG stands for “environmental, social and governance”.

— There has not been a standardized approach to evaluate ESG performance of investment

portfolios, although ESG ratings, benchmarks and indices are used by investors.

— Some ESG investing methodology includes “best in class/positive screening”, “negative

screening/exclusionary screening”, “sustainable thematic investing”, etc., see: https:// www

.sustainablefinance .ch/ en/ glossary - _content - - -1 - -3077 .html
4 © ISO 2021 – All rights reserved
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ISO/TR 32220:2021(E)
ESG integration

explicit and systematic inclusion of ESG issues in investment analysis and investment decisions

[SOURCE: PRI website. Available from [last accessed 2021-03]: https:// www .unpri .org/ fixed -income/

what -is -esg -integration/ 3052 .article]
socially responsible investment (SRI)

investing with the aim of achieving financial returns while respecting specific ethical, environmental

and/or social criteria

[SOURCE: ICMA. Sustainable Finance High-level definitions, May 2020. Available from: https:// www

.icmagroup .org/ assets/ documents/ Regulatory/ Green -Bonds/ Sustainable -Finance -High -Level

-Definitions -May -2020 -110520v4 .pdf]
impact investment
investment made with the intention to generate positive, measurable social and
environmental impact alongside a financial return

[Adapted from source: GIIN website. Available from [last accessed 2021-03]: https:// thegiin .org/

impact -investing/ need -to -know/ #what -is -impact -investing]
green technology (environmental technology)

technology that has the potential to significantly improve environmental performance relative to

other technology

[SOURCE: UN ESCAP. Low Carbon Green Growth Roadmap for Asia and the Pacific: Fact Sheet – Green

Technology, January 2012. Available from: https:// www .unescap .org/ sites/ default/ files/ 34 . %20FS

-Green -Technology .pdf]
greenwashing

the practice of gaining an unfair competitive advantage by marketing a financial product as

environmentally friendly, when in fact it does not meet basic environmental standards

[SOURCE: Technical expert group on sustainable finance (TEG). Proposal for a Regulation of the

European Parliament and of the Council on the establishment of a framework to facilitate sustaina-

ble investment – Approval of the final compromise text, December 2019. Available from: https:// data

.consilium .europa .eu/ doc/ document/ ST -14970 -2019 -ADD -1/ en/ pdf]
© ISO 2021 – All rights reserved 5
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ISO/TR 32220:2021(E)
sustainable supply chain

incorporate eligibility requirements, based on sustainability standards, into contractual

relationships with suppliers
Further detail:

— By explicitly factoring social, environmental, and governance criteria upstream, where raw

materials are processed, and downstream to the consumer, purchasers and their suppliers can

reduce operational risks, maintain profitability, and meet the growing demand for organic,

certified and sustainably produced goods.

[SOURCE: IFC. Sustainable Finance Opportunities: Sustainable Supply Chain Finance, 2006. Available

from: https:// www .ifc .org/ wps/ wcm/ connect/ eea816de -4b76 -4d5b -b607 -665bfe5e6ac8/ FMS -EO

-SupplyChain .pdf ?MOD = AJPERES & CVID = jkCUlzt]
sustainable infrastructure

infrastructure projects that are planned, designed, constructed, operated, and decommissioned in a

manner to ensure economic and financial, social, environmental (including climate resilience), and

institutional sustainability over the entire life cycle of the project

[SOURCE: Inter-America Development Bank, What is Sustainable Infrastructure, March 2018.

Available from: https:// publications .iadb .org/ publications/ english/ document/ What _is _Sustainable

_Infrastructure _ _A _Framework _to _Guide _Sustainability _Across _the _Project _Cycle .pdf]

environmental costs

costs connected with the actual or potential deterioration of natural assets due to economic activities

[SOURCE: OECD Statistics Portal website. Available from [last accessed 2021-03]: https:// stats .oecd

.org/ glossary/ ]
greenhouse gas emission reduction (GHG emission reduction)

quantified decrease in GHG emissions between a baseline scenario and the GHG project

[SOURCE: ISO 14064-2:2019, Greenhouse gases — Part 2: Specification with guidance at the project level

for quantification, monitoring and reporting of greenhouse gas emission reductions or removal

enhancements, 3.1.7]
Further detail:

— Greenhouse gas (GHG): gaseous constituent of the atmosphere, both natural and anthropogenic,

that absorbs and emits radiation at specific wavelengths within the spectrum of infrared

radiation emitted by the Earth’s surface, the atmosphere and clouds.

— Baseline scenario: hypothetical reference case that best represents the conditions most likely to

occur in the absence of a proposed GHG project.

— GHG project: activity or activities that alter the conditions of a GHG baseline and which cause

GHG emission reductions or GHG removal enhancements.
6 © ISO 2021 – All rights reserved
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ISO/TR 32220:2021(E)
carbon pricing

to put a price on carbon pollution as a means of bringing down emissions and drive investment into

cleaner options

[SOURCE: World Bank Website. Available from [last accessed 2021-03]: https:// www .worldbank .org/

en/ programs/ pricing -carbon #CarbonPricing]
Further detail:

— There are two main types of carbon pricing: emissions trading systems (ETS) and carbon taxes.

carbon credit

tradable certificate or permit that represents the right to emit a specified amount of greenhouse

gases

[SOURCE: ISO 6707-3:2017, Buildings and civil engineering works – Vocabulary – Part 3: Sustainability

terms, 3.6.20]
Further detail:

— The unit of one carbon credit is equal to one tonne of carbon dioxide emissions.

— Allows an organization to benefit financially from an emission reduction.
carbon offsetting

mechanism for compensating for all or for a part of the carbon footprint of a product or the partial

carbon footprint of a product through the prevention of the release of, reduction in, or removal of an

amount of greenhouse gas emissions in a process outside the product system under study

[SOURCE: ISO 14050:2020, Environmental management – Vocabulary, 3.11.5]
Further detail:

— Carbon footprint is the net amount of GHG emissions and GHG removals, expressed in CO

equivalents.
emissions trading system (ETS)

system whereby the government imposes a limit (cap) on the total emissions in one or more sectors of

the economy, and it issues a number of tradable allowances not exceeding the level of the cap

[SOURCE: World Bank website. Available from [last accessed 2020-08]: https:// www .worldbank .org/

en/ programs/ pricing -carbon]
Further detail:

— The advantage of an emissions trading system is that it permits compliance flexibility, allowing

each source to make a tailored choice in order to meet the target limit for emissions.

— There are two main types of trading systems: a) cap-and-trade systems, and b) baseline-and-

credit systems. In a cap-and-trade system, an upper limit on emissions is fixed, and emission

permits are either auctioned out or distributed for free according specific criteria. Under a

baseline-and-credit system, there is no fixed limit on emissions, but polluters that reduce their

emissions more than they otherwise are obliged to can earn “credits” that they sell to others who

need them in order to comply with regulations they are subject to.
© ISO 2021 – All rights reserved 7
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ISO/TR 32220:2021(E)
social responsibility

responsibility of an organization for the impacts of its decisions and activities on society and the

environment, through transparent and ethical behaviour that

— contributes to sustainable development, including health and the welfare of society;

— takes into account the expectations of stakeholders;

— is in compliance with applicable law and consistent with international norms of behaviour; and

— is integrated throughout the organization and practised in its relationships.
[SOURCE: ISO 26000:2010, Guidance on Social Responsibility, 2.18]
Further detail:
— Activities include products, services and processes.

— Relationships refer to an organization’s activities within its sphere of influence.

CSR (corporate social responsibility)

a management concept whereby companies integrate social and environmental concerns in their

business operations and interactions with their stakeholders

[SOURCE: UNIDO Website. Available from [last accessed 2021-03]: https:// www .unido .org/ our -focus/

advancing -economic -competitiveness/ competitive -trade -capacities -and -corporate -responsibility/

corporate -social -responsibility -market -integration/ what -csr]
disaster resilience

the capacity of a system, community or society potentially exposed to hazards to adapt, by resisting

or changing in order to reach and maintain an acceptable level of functioning and structure

[SOURCE: UNISDR. Hyogo Framework, 2005. Available from: https:// www .unisdr .org/ 2005/ wcdr/

intergover/ official -doc/ L -docs/ Hyogo -framework -for -action -english .pdf]
climate resilience

the ability to anticipate, prepare for, and respond to hazardous events, trends, or disturbances related

to climate

[SOURCE: C2ES website. Available from [last accessed 2021-03]: https:// www .c2es .org/ content/

climate -resilience -overview/ ]
Further detail:

— Governments and businesses are obtaining capital to invest in resilience projects through

innovative finance mechanisms such as green bonds and climate funds.
8 © ISO 2021 – All rights reserved
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ISO/TR 32220:2021(E)
environmental-related risks

risks posed by the exposure of financial firms and/or the financial sector to activities that may

potentially cause or be affected by environmental degradation

[SOURCE: Network for Greening the Financial System (NGFS). First Comprehensive Report: A Call for

Action-Climate Change as a source of financial risk, April 2019. Available from: https:// www .ngfs .net/

sites/ default/ files/ medias/ documents/ ngfs _first _comprehensive _report _ - _17042019 _0 .pdf]

Further detail:

— Environmental degradation includes but is not limited to: air pollution, ware pollution and

scarcity of fresh water, land contamination, reduced biodiversity and deforestation.

climate-related risks

risks posed by the exposure of financial firms and/or the financial sector to physical or transition

risks caused by or related to climate change

[SOURCE: NGFS. First Comprehensive Report: A Call for Action-Climate Change as a source of financial

risk, April 2019. Available from: https:// www .ngfs .net/ sites/ default/ files/ medias/ documents/ ngfs

_first _comprehensive _report _ - _17042019 _0 .pdf]
Further detail:

— Climate-related risks include transition and physical risks that can impact revenues,

expenditures and liabilities of financial institutions and non-financial groups.

— Description of transition and physical risks: https:// assets .bbhub .io/ company/ sites/ 60/ 2020/ 10/

FINAL -2017 -TCFD -Report -11052018 .pdf
environmental risk assessment (ERA)

methods and modelling techniques used to size the financial impact of climate and environment-

related risks to micro-prudential objectives

[SOURCE: NGFS. First Progress Report, October 2018. Available from: https:// www .ngfs .net/ en/ first

-progress -report]
environmental stress testing

an approach to quantify the environmental risk probably facing financial institutions by making use

of the stress testing methodology

[SOURCE: Research Bureau of the People’s Bank of China and the Green Finance Committee of China

Society for Finance and Banking. Green Finance Terminology Handbook, 2018]
Further detail:

— The process is as follows: determine the stress taker and stress indicators; select the stress

factors and indicators, build the stress conduction model; analyse the stress test results;

and bring forward the policies and suggestions, see: https:// www .trucost .com/ publication/

internalization -of -environmental -costs -for -investment -stress -testing/
© ISO 2021 – All rights reserved 9
---------------------- Page: 14 ----------------------
ISO/TR 32220:2021(E)
stranded asset

asset that has suffered from unanticipated or premature write-downs, devaluations, or conversion to

liabilities

[SOURCE: Caldecott B., Howarth N., McSharry P. Stranded Assets in Agriculture: Protecting Value

from Environment-Related Risks. Smith School of Enterprise and the Environment, University of

Oxford, 2013. Available from: https:// www .smithschool .ox .ac .uk/ publications/ reports/ stranded

-assets -agriculture -report -final .pdf]
Further detail:

— Inter-American Development Bank (IDB) adopted the definition in its report Stranded Assets: A

Climate Risk Chal
...

RAPPORT ISO/TR
TECHNIQUE 32220
Première édition
2021-08
Finance durable — Concepts de base
et initiatives clés
Sustainable finance — Basic concepts and key initiatives
Numéro de référence
ISO/TR 32220:2021(F)
ISO 2021
---------------------- Page: 1 ----------------------
ISO/TR 32220:2021(F)
DOCUMENT PROTÉGÉ PAR COPYRIGHT
© ISO 2021

Tous droits réservés. Sauf prescription différente ou nécessité dans le contexte de sa mise en œuvre, aucune partie de cette

publication ne peut être reproduite ni utilisée sous quelque forme que ce soit et par aucun procédé, électronique ou mécanique,

y compris la photocopie, ou la diffusion sur l’internet ou sur un intranet, sans autorisation écrite préalable. Une autorisation peut

être demandée à l’ISO à l’adresse ci-après ou au comité membre de l’ISO dans le pays du demandeur.

ISO copyright office
Case postale 401 • Ch. de Blandonnet 8
CH-1214 Vernier, Genève
Tél.: +41 22 749 01 11
E-mail: copyright@iso.org
Web: www.iso.org
Publié en Suisse
ii © ISO 2021 – Tous droits réservés
---------------------- Page: 2 ----------------------
ISO/TR 32220:2021(F)
Sommaire Page

Avant-propos ..............................................................................................................................................................................................................................iv

Introduction ..................................................................................................................................................................................................................................v

1 Domaine d’application ................................................................................................................................................................................... 1

2 Références normatives ................................................................................................................................................................................... 1

3 Termes et définitions ....................................................................................................................................................................................... 1

4 Concepts de base .................................................................................................................................................................................................. 1

5 Principes, lignes directrices et réglementation ................................................................................................................10

6 Produits et services financiers ...........................................................................................................................................................20

7 Vérification, reporting et publication des informations ..........................................................................................23

8 Initiatives et organisation internationales ............................................................................................................................25

Annexe A (informative) Comités ISO connexes et normes autonomes en lien direct .....................................32

© ISO 2021 – Tous droits réservés iii
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ISO/TR 32220:2021(F)
Avant-propos

L’ISO (Organisation internationale de normalisation) est une fédération mondiale d’organismes

nationaux de normalisation (comités membres de l’ISO). L’élaboration des Normes internationales est

en général confiée aux comités techniques de l’ISO. Chaque comité membre intéressé par une étude

a le droit de faire partie du comité technique créé à cet effet. Les organisations internationales,

gouvernementales et non gouvernementales, en liaison avec l’ISO participent également aux travaux.

L’ISO collabore étroitement avec la Commission électrotechnique internationale (IEC) en ce qui

concerne la normalisation électrotechnique.

Les procédures utilisées pour élaborer le présent document et celles destinées à sa mise à jour sont

décrites dans les Directives ISO/IEC, Partie 1. Il convient, en particulier, de prendre note des différents

critères d’approbation requis pour les différents types de documents ISO. Le présent document a été

rédigé conformément aux règles de rédaction données dans les Directives ISO/IEC, Partie 2 (voir www

.iso .org/ directives).

L’attention est attirée sur le fait que certains des éléments du présent document peuvent faire l’objet de

droits de propriété intellectuelle ou de droits analogues. L’ISO ne saurait être tenue pour responsable

de ne pas avoir identifié de tels droits de propriété et averti de leur existence. Les détails concernant

les références aux droits de propriété intellectuelle ou autres droits analogues identifiés lors de

l’élaboration du document sont indiqués dans l’Introduction et/ou dans la liste des déclarations de

brevets reçues par l’ISO (voir www .iso .org/ brevets).

Les appellations commerciales éventuellement mentionnées dans le présent document sont données

pour information, par souci de commodité, à l’intention des utilisateurs et ne sauraient constituer un

engagement.

Pour une explication de la nature volontaire des normes, la signification des termes et expressions

spécifiques de l’ISO liés à l’évaluation de la conformité, ou pour toute information au sujet de l’adhésion

de l’ISO aux principes de l’Organisation mondiale du commerce (OMC) concernant les obstacles

techniques au commerce (OTC), voir www .iso .org/ avant -propos.

Le présent document a été élaboré par le Comité technique ISO/TC 322, Finance durable.

Il convient que l’utilisateur adresse tout retour d’information ou toute question concernant le présent

document à l’organisme national de normalisation de son pays. Une liste exhaustive desdits organismes

se trouve à l’adresse www .iso .org/ fr/ members .html.
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ISO/TR 32220:2021(F)
Introduction

La finance durable est une pratique en pleine évolution qui est adoptée par un nombre grandissant

de régions, pays et entités économiques dans différents registres. Compte tenu de cette dynamique, il

est nécessaire que les utilisateurs aient connaissance des concepts de base, des initiatives clés et des

termes couramment utilisés, afin que soit facilitée la communication entre différents types d’acteurs

des marchés financiers et parties prenantes dans diverses zones géographiques.

Le présent document a été élaboré après consultation de nombreuses sources d’information

notamment: politiques et cadres-directeurs au niveau international, régional et national, sites Web

officiels et publications des institutions financières de développement (IFD) multilatérales, initiatives

et organisations internationales contribuant à promouvoir, permettre et harmoniser les pratiques de

finance durable dans le monde, publications spécialisées et Normes internationales afférentes.

Les termes figurant dans le présent document sont des termes largement reconnus et utilisés dans la

communauté mondiale de la finance durable. En revanche, leurs définitions n’ont pas fait l’objet d’une

validation formelle par le biais du processus de consensus appliqué pour l’élaboration des Normes

internationales.

Pour chaque terme, au moins une source accessible est associée à la définition. Certains termes font

référence à une ou plusieurs sources donnant un contexte à la définition. Pour faciliter l’utilisation du

document, les concepts, initiatives et termes clés de la finance durable sont répartis en cinq articles:

— concepts de base (voir Article 4);
— principes, lignes directrices et réglementation (voir Article 5);
— produits et services financiers (voir Article 6);
— vérification, rapports et publication des informations (voir Article 7);
— initiatives et organisations internationales (voir Article 8).

Les comités ISO en liaison avec l’ISO/TC 322 et les normes directement liées à la finance durable sont

indiqués dans l’Annexe A.
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RAPPORT TECHNIQUE ISO/TR 32220:2021(F)
Finance durable — Concepts de base et initiatives clés
1 Domaine d’application

Le présent document fournit une liste non exhaustive de concepts de base, d’initiatives clés et de termes

couramment utilisés dans la communauté mondiale de la finance durable. Il s’agit d’éléments considérés

utiles par l’ISO/TC 322 pour permettre une meilleure compréhension des sujets abordés par les acteurs

de la finance durable qui incluent, sans s’y limiter, régulateurs financiers, banques de développement

et banques commerciales, gestionnaires d’actifs, investisseurs, initiatives internationales et centres de

recherche.

Les termes figurant dans le présent document ont été sélectionnés pour les raisons suivantes:

— largement reconnus et utilisés au sein des marchés financiers;

— issus d’une ou de plusieurs organisations ou initiatives supranationales, ou d’autorités de régulation

nationales;

NOTE Priorité est donnée à la source couvrant la zone géographique la plus étendue.

— susceptibles d’être utilisés dans des documents élaborés par l’ISO/TC 322 et d’autres Normes

internationales connexes;
— caractérisés par leur prévalence et leur intérêt au niveau international.
2 Références normatives
Le présent document ne contient aucune référence normative.
3 Termes et définitions
Aucun terme n’est défini dans le présent document.

L’ISO et l’IEC tiennent à jour des bases de données terminologiques destinées à être utilisées en

normalisation, consultables aux adresses suivantes:

— ISO Online browsing platform: disponible à l’adresse https:// www .iso .org/ obp

— IEC Electropedia: disponible à l’adresse http:// www .electropedia .org/
4 Concepts de base

Le présent article énonce les concepts de base liés à la finance durable. Dans certains cas, une seule

source est citée; dans d’autres, plusieurs sources ont été identifiées comme appropriées. Par exemple,

le terme «finance durable» est utilisé dans de nombreux contextes et le présent document identifie les

quatre descriptions les plus appropriées.
finance durable

financement et dispositions institutionnelles et de marché afférentes contribuant à la réalisation d’une crois-

sance forte, durable, équilibrée et inclusive au travers du soutien direct et indirect du cadre des Objectifs de

développement durable (ODD) des Nations Unies

[SOURCE: G20 Rapport de synthèse sur la finance durable, Introduction, juillet 2018]

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ISO/TR 32220:2021(F)
finance durable

processus consistant à tenir dûment compte des considérations environnementales et sociales dans la prise de

décisions d’investissement, ce qui se traduit par une hausse des investissements dans des activités à plus long

terme et durables

[SOURCE: Site Web de la Commission européenne. Disponible à l’adresse [dernier accès le 2021-05]: https:// ec

.europa .eu/ transparency/ documents -register/ detail ?ref = COM(2018)97 & lang = fr]

mise en œuvre de services financiers pour répondre à l’objectif de durabilité

[SOURCE: PAS 7340:2020, Framework for embedding the principles of sustainable finance in financial services

organizations. Guide, 2.26]

intégration des principes environnementaux, sociaux et de gouvernance (ESG) dans les décisions des entre-

prises, le développement économique et les stratégies d’investissement

[SOURCE: Fonds monétaire international. Global Financial Stability Report: Lower for Longer, Chapter 6: Sus-

tainable Finance, octobre 2019. Disponible à l’adresse: https:// www .elibrary .imf .org/ view/ books/ 082/ 26206

-9781498324021 -en/ 26206 -9781498324021 -en -book .xml ?language = en & redirect = true #references]

durabilité

état du système mondial, incluant les aspects environnementaux, sociaux et économiques, qui répond aux

besoins du présent sans compromettre la capacité des générations futures à répondre aux leurs

[SOURCE: ISO 20400:2017, Achats responsables — Lignes directrices, 3.33]
Détails supplémentaires:

— Les aspects environnementaux, sociaux et économiques interagissent, sont interdépendants et sont

souvent désignés comme les trois dimensions de la durabilité.
— La durabilité est l’objectif du développement durable.
objectifs de développement durable (ODD)

marche à suivre pour parvenir à un avenir meilleur et plus durable pour tous. Les objectifs répondent aux défis

mondiaux auxquels nous sommes confrontés, notamment ceux liés à la pauvreté, aux inégalités, au climat, à la

dégradation de l’environnement, à la paix et à la justice

[SOURCE: Site Web des Objectifs de développement durable des Nations Unies. Disponible à l’adresse [dernier

accès le 2021-03]: https:// www .un .org/ sus tainablede velopment/ fr/ objectifs -de -developpement -durable/ ]

Détails supplémentaires:

— Les 17 objectifs sont interconnectés et, pour ne laisser personne de côté, il est important d’atteindre chacun

d’entre eux d’ici à 2030.
taxonomie des activités économiques durables

système de classification identifiant les activités, les actifs et les segments de marché qui répondent aux objec-

tifs de durabilité en fonction des conditions d’éligibilité définies par la taxonomie

[SOURCE: PAS 7340:2020, Framework for embedding the principles of sustainable finance in financial services

organizations. Guide, 2.24]
Détails supplémentaires:

— Cadre sur lequel peuvent s’appuyer les définitions existantes (et futures) qui sont utilisées dans des

contextes divers, permettant ainsi la comparabilité de différentes normes et différents produits.

— Une taxonomie est un cadre pouvant être appliqué à divers instruments financiers.

— Le système de classification est un outil évolutif qui nécessite d’être vérifié et mis à jour en continu.

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ISO/TR 32220:2021(F)
finance verte

financement d’investissements produisant des avantages environnementaux dans le contexte plus large du

développement durable

[SOURCE: Groupe d’études sur la finance verte du G20. G20 Green Finance Synthesis Report, Résumé, juillet 2016.

Disponible à l’adresse: http:// unepinquiry .org/ wp -content/ uploads/ 2016/ 09/ Synthesis _Report _Summary _FR

.pdf]

services financiers fournis pour des activités économiques qui soutiennent l’amélioration de l’environnement,

l’atténuation du changement climatique et l’utilisation plus efficace des ressources

[SOURCE: The People’s Bank of China et al. Guidelines for Establishing the Green Financial System (Yinfa 2016

Doc No. 228), 2016. Disponible à l’adresse: http:// www .pbc .gov .cn/ english/ 130721/ 3133045/ index .html]

Détails supplémentaires:

— Ces activités économiques incluent le financement, la mise en œuvre et la gestion des risques pour des

projets dans les domaines de la protection de l’environnement, des économies d’énergie, des énergies

propres, des transports verts et de l’écoconstruction.
finance climat

financement local, national ou transnational, issu de fonds publics, privés et alternatifs, qui cherche à soutenir

les actions d’atténuation et d’adaptation mises en œuvre pour lutter contre le changement climatique

[SOURCE: Site Web de la Convention-cadre des Nations Unies sur les changements climatiques. Disponible à

l’adresse [dernier accès le 2021-03]: https:// unfccc .int/ topics/ climate -finance/ the -big -picture/ introduction -to

-climate -finance]
finance sociale

financement qui soutient des actions permettant d’atténuer ou de résoudre un problème social spécifique et/

ou de chercher à obtenir des résultats sociaux positifs en particulier, mais pas exclusivement, pour une ou des

populations cibles

[Adaptée de la source: ICMA. Sustainable Finance High-level definitions, mai 2020. Disponible à l’adresse:

https:// www .icmagroup .org/ assets/ documents/ Regulatory/ Green -Bonds/ Sustainable -Finance -High -Level

-Definitions -May -2020 -110520v4 .pdf]
micro-finance

services de prêts, d’épargne, d’assurance, de transfert et autres produits financiers ciblant une clientèle à

faibles revenus

[SOURCE: Wegner, L. (2006), La micro-finance: un moyen pour les banquiers de racheter leur âme. Centre de

développement de l’OCDE, Repères, No. 31. Éditions OCDE, Paris: https:// doi .org/ 10 .1787/ 244828638578]

financement mixte

utilisation stratégique du financement du développement pour mobiliser des financements additionnels à

l’appui du développement durable dans les pays en développement

[SOURCE: Wegner, L. (2006), La micro-finance: un moyen pour les banquiers de racheter leur âme. Centre de

développement de l’OCDE, Repères, No. 31. Éditions OCDE, Paris: https:// doi .org/ 10 .1787/ 244828638578]

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ISO/TR 32220:2021(F)
aide publique au développement (APD)

aide fournie par les États dans le but exprès de promouvoir le développement économique et d’améliorer les

conditions de vie dans les pays en développement

[SOURCE: Site Web de l’OCDE. Disponible à l’adresse [dernier accès le 2021-03]: https:// www .oecd .org/

fr/ cad/ financem entpourled eveloppeme ntdurable/ normes -financement -developpement/ aide -publique -au

-developpement .htm]
Détails supplémentaires:

— Les apports d’APD fournis aux pays et territoires figurant sur la Liste des bénéficiaires de l’APD

établie par le CAD (Comité d’aide au développement de l’OCDE) ou à des organisations multilatérales

de développement: a) émanent d’organismes publics, y compris les États et les collectivités locales, ou

d’organismes agissant pour le compte d’organismes publics; et b) sont assortis de conditions favorables

(dons et prêts concessionnels) et ont pour but essentiel de favoriser le développement économique et

l’amélioration du niveau de vie des pays en développement.

— Liste des bénéficiaires de l’APD établie par le CAD: https:// www .oecd .org/ fr/ cad/ financem entpourled

eveloppeme ntdurable/ normes -financement -developpement/ listecad .htm
investissement ESG (investissement responsable)

stratégies et pratiques qui intègrent des facteurs ESG concrets dans les décisions d’investissement et un

actionnariat actif en vue de réduire le plus possible les risques et d’optimiser les rendements

[SOURCE: ICMA. Sustainable Finance High-level definitions, mai 2020. Disponible à l’adresse: https:// www

.icmagroup .org/ assets/ documents/ Regulatory/ Green -Bonds/ Sustainable -Finance -High -Level -Definitions -May

-2020 -110520v4 .pdf]
Détails supplémentaires:
— ESG signifie «environnementaux, sociaux et de gouvernance».

— Bien que les investisseurs aient recours à des notations, des indices de référence et des indices ESG, aucune

approche normalisée n’existe pour évaluer les performances ESG des portefeuilles d’investissement.

— Certaines méthodologies d’investissements ESG intègrent les approches suivantes: «best-in-class/filtrage

positif», «filtrage négatif/exclusion», «investissement thématique durable», etc., voir: https:// www

.sustainablefinance .ch/ en/ glossary - _content - - -1 - -3077 .html
intégration ESG

intégration explicite et systématique des critères ESG dans le processus d’analyse financière et les décisions

d’investissement

[SOURCE: Site Web des principes pour l’investissement responsable (PRI). Disponible à l’adresse [dernier accès

le 2021-03]: https:// www .unpri .org/ fixed -income/ what -is -esg -integration/ 3052 .article]

investissement socialement responsable (ISR)

investissement qui vise à fournir un rendement financier tout en respectant des critères éthiques, environne-

mentaux et/ou sociaux spécifiques

[SOURCE: ICMA. Sustainable Finance High-level definitions, mai 2020. Disponible à l’adresse: https:// www

.icmagroup .org/ assets/ documents/ Regulatory/ Green -Bonds/ Sustainable -Finance -High -Level -Definitions -May

-2020 -110520v4 .pdf]
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ISO/TR 32220:2021(F)
investissement à impact

investissement réalisé dans l’intention de produire un impact positif et mesurable au niveau de critères

sociaux et environnementaux

[Adaptée de la source: Site Web du réseau GIIN. Disponible à l’adresse [dernier accès le 2021-03]: https://

thegiin .org/ impact -investing/ need -to -know/ #what -is -impact -investing]
technologie verte (technologie environnementale)

technologie qui a la capacité d’améliorer significativement les performances environnementales par rapport à

une autre technologie

[SOURCE: UN ESCAP. Low Carbon Green Growth Roadmap for Asia and the Pacific: Fact Sheet – Green Technology,

janvier 2012. Disponible à l’adresse: https:// www .unescap .org/ sites/ default/ files/ 34 . %20FS -Green -Technology

.pdf]
éco-blanchiment

pratique consistant à commercialiser comme respectueux de l’environnement un produit financier qui, en réa-

lité, ne satisfait pas à des normes environnementales de base, afin d’obtenir un avantage concurrentiel indu

[SOURCE: Groupe d’experts techniques (TEG) sur la finance durable. Proposition de Règlement du Parlement

européen et du Conseil sur l’établissement d’un cadre pour favoriser les investissements durables – Approbation

du texte de compromis final, décembre 2019. Disponible à l’adresse: https:// data .consilium .europa .eu/ doc/

document/ ST -14970 -2019 -ADD -1/ fr/ pdf]
chaîne d’approvisionnement responsable

intégrer des critères d’éligibilité, basés sur des normes de durabilité, dans les relations contractuelles avec les

fournisseurs
Détails supplémentaires:

— En intégrant de manière explicite des critères sociaux, environnementaux et de gouvernance en amont

(au niveau des matières premières) et en aval jusqu’au consommateur, les acheteurs et leurs fournisseurs

peuvent réduire les risques opérationnels, préserver la rentabilité et répondre à la demande grandissante

en produits biologiques, certifiés et issus de sources durables.

[SOURCE: IFC. Sustainable Finance Opportunities: Sustainable Supply Chain Finance, 2006. Disponible à l’adresse:

https:// www .ifc .org/ wps/ wcm/ connect/ eea816de -4b76 -4d5b -b607 -665bfe5e6ac8/ F M S -E O -Suppl y C h a i n .

pdf?MOD=AJPERES&CVID=jkCUlzt]
infrastructure durable

projets d’infrastructure qui sont planifiés, conçus, construits, mis en œuvre et démantelés de sorte à garantir

la durabilité économique, financière, sociale, environnementale (y compris résilience climatique) et institu-

tionnelle pendant tout le cycle de vie du projet

[SOURCE: Inter-America Development Bank, What is Sustainable Infrastructure, mars 2018. Disponible à

l’adresse: http:// unepinquiry .org/ wp -content/ uploads/ 2016/ 06/ Sustainable _Infrastructure _and _Finance .pdf]

coûts écologiques

coûts associés à la dégradation réelle ou potentielle des actifs naturels due aux activités économiques

[SOURCE: Site Web du portail des statistiques de l’OCDE. Disponible à l’adresse [dernier accès le 2021-03]:

https:// stats .oecd .org/ glossary/ ]
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ISO/TR 32220:2021(F)
réduction d’émissions de gaz à effet de serre (réduction d’émissions de GES)

diminution quantifiée des émissions de GES entre un scénario de référence et le projet GES

[SOURCE: ISO 14064-2:2019, Gaz à effet de serre — Partie 2: Spécifications et lignes directrices, au niveau des

projets, pour la quantification, la surveillance et la rédaction de rapports sur les réductions d’émissions ou les

accroissements de suppressions des gaz à effet de serre, 3.1.7]
Détails supplémentaires:

— Gaz à effet de serre (GES): constituant gazeux de l’atmosphère, naturel ou anthropique, qui absorbe et

émet le rayonnement de longueurs d’onde spécifiques du spectre du rayonnement infrarouge émis par la

surface de la Terre, l’atmosphère et les nuages.

— Scénario de référence: cas de référence hypothétique qui représente le mieux les conditions qui seraient

les plus vraisemblables en l’absence du projet GES proposé.

— Projet GES: une ou plusieurs activités modifiant les conditions d’une référence GES et destinées à la

réduction d’émissions de GES ou à l’accroissement des suppressions de GES.
tarification du carbone

définition d’un prix pour la pollution au carbone, utilisée comme outil pour réduire les émissions et favoriser

les investissements dans des options plus propres

[SOURCE: Site Web de la Banque mondiale. Disponible à l’adresse [dernier accès le 2021-03]: https:// www

.worldbank .org/ en/ programs/ pricing -carbon #CarbonPricing]
Détails supplémentaires:

— Il existe deux principaux types de mécanisme de tarification du carbone: les systèmes d’échange de droits

d’émission (ETS) et les taxes carbone.
crédit carbone

certificat ou permis négociable qui représente le droit d’émettre une quantité spécifiée de gaz à effet de serre

[SOURCE: ISO 6707-3:2017, Buildings and civil engineering works – Vocabulary – Part 3: Sustainability terms,

3.6.20]
Détails supplémentaires:
— Un crédit carbone équivaut à l’émission d’une tonne de dioxyde de carbone.

— Il permet à une entreprise de tirer un profit financier de la réduction de ses émissions.

compensation carbone

mécanisme de compensation de la totalité ou d’une partie de l’empreinte carbone d’un produit ou de l’em-

preinte carbone d’un produit partielle par la prévention des émissions, la réduction ou la captation d’une quan-

tité des émissions de gaz à effet de serre d’un processus en dehors du système de produits objet de l’étude

[SOURCE: ISO 14050:2020, Management environnemental – Vocabulaire, 3.11.5]
Détails supplémentaires:

— L’empreinte carbone est la quantité nette des émissions de GES et des suppressions de GES, exprimée en

équivalents CO .
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ISO/TR 32220:2021(F)
système d’échange de droits d’émission (ETS)

système par lequel le gouvernement impose une limite (plafond) sur les émissions totales dans un ou plusieurs

secteurs de l’économie, et distribue un certain nombre de quotas échangeables ne dépassant pas le plafond

défini

[SOURCE: Site Web de la Banque mondiale. Disponible à l’adresse [dernier accès le 2020-08]: https:// www

.worldbank .org/ en/ programs/ pricing -carbon]
Détails supplémentaires:

— L’avantage d’un système d’échange de droits d’émission est d’apporter une souplesse en matière de

conformité, permettant ainsi à chaque source de faire des choix adaptés à sa situation pour répondre à la

limite fixée pour les émissions.

— Il existe deux principaux types de systèmes d’échange: a) les systèmes de plafonnement et d’échange,

et b) les systèmes de référence et crédit (« baseline-and-credit »). Dans un système de plafonnement et

d’échange, une limite supérieure des émissions est fixée et des permis d’émission sont mis aux enchères

ou distribués selon des critères précis. Dans un système de «référence et crédit», aucune limite n’est

fixée pour les émissions, mais les pollueurs qui réduisent leurs émissions au-delà de ce qui leur est

imposé peuvent gagner des «crédits» qu’ils vendent à ceux qui en ont besoin pour se conformer aux

réglementations qui leur sont applicables.
responsabilité sociétale

responsabilité d’une organisation vis-à-vis des impacts de ses décisions et activités sur la société et sur l’envi-

ronnement, se traduisant par un comportement éthique et transparent qui:

— contribue au développement durable, y compris à la santé et au bien-être de la société;

— prend en compte les attentes des parties prenantes;

— respecte les lois en vigueur tout en étant en cohérence avec les normes internationales de comportement;

— est intégré dans l’ensemble de l’organisation et mis en œuvre dans ses relations.

[SOURCE: ISO 26000:2010, Lignes directrices relatives à la responsabilité sociétale, 2.18]

Détails supplémentaires:
— Les activités comprennent des produits, des services et des processus.

— Les relations correspondent aux activités de l’organisation au sein de sa sphère d’influence.

RSE (responsabilité sociétale des entreprises)

concept de management dans lequel les entreprises prennent en compte les enjeux sociaux et environnemen-

taux dans leurs activités et dans leurs interactions avec les parties prenantes

[SOURCE: Site Web de l’UNIDO. Disponible à l’adresse [dernier accès le 2021-03]: https:// www .unido .org/ our

-focus/ advancing -economic -competitiveness/ competitive -trade -capacities -and -corporate -responsibility/

corporate -social -responsibility -market -integration/ what -csr]
résilience face aux catastrophes

aptitude d’un système, d’une collectivité ou d’une société potentiellement exposé à des aléas à s’adapter, en

opposant une résistance ou en se modifiant, afin de parvenir ou de continuer à fonctionner convenablement

avec des structures acceptables

[SOURCE: UNISDR. Cadre d’action de Hyogo, 2005. Disponible à l’adresse: https:// www .unisdr .org/ 2005/ wcdr/

intergover/ official -doc/ L -docs/ Hyogo -framework -for -action -french .pdf]
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ISO/TR 32220:2021(F)
résilience face aux changements climatiques

capacité à anticiper, se préparer et répondre à des événements dangereux, des tendances ou des perturbations

en lien avec le climat

[SOURCE: Site Web du C2ES. Disponible à l’adresse [dernier accès le 2021-03]: https:// www .c2es .org/ content/

climate -resilience -overview/ ]
Détails supplémentaires:

— Les gouvernements et les entreprises financent leurs investissements dans des projets de résilience par le

biais de mécanismes financiers novateurs tels que les obligations v
...

TECHNICAL ISO/TR
REPORT 32220
First edition
Sustainable finance — Basic concepts
and key initiatives
PROOF/ÉPREUVE
Reference number
ISO/TR 32220:2021(E)
ISO 2021
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ISO/TR 32220:2021(E)
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© ISO 2021

All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may

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below or ISO’s member body in the country of the requester.
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Published in Switzerland
ii PROOF/ÉPREUVE © ISO 2021 – All rights reserved
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ISO/TR 32220:2021(E)
Contents Page

Foreword ........................................................................................................................................................................................................................................iv

Introduction ..................................................................................................................................................................................................................................v

1 Scope ................................................................................................................................................................................................................................. 1

2 Normative references ...................................................................................................................................................................................... 1

3 Terms and definitions ..................................................................................................................................................................................... 1

4 Basic concepts ......................................................................................................................................................................................................... 1

5 Principles, guidelines and regulation ..........................................................................................................................................10

6 Financial products and services ........................................................................................................................................................20

7 Verification, reporting and disclosure ........................................................................................................................................23

8 International initiatives and organizations ..........................................................................................................................25

Annex A (informative) Related ISO committees and directly related standalone standards .................31

© ISO 2021 – All rights reserved PROOF/ÉPREUVE iii
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ISO/TR 32220:2021(E)
Foreword

ISO (the International Organization for Standardization) is a worldwide federation of national standards

bodies (ISO member bodies). The work of preparing International Standards is normally carried out

through ISO technical committees. Each member body interested in a subject for which a technical

committee has been established has the right to be represented on that committee. International

organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.

ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of

electrotechnical standardization.

The procedures used to develop this document and those intended for its further maintenance are

described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the

different types of ISO documents should be noted. This document was drafted in accordance with the

editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/ directives).

Attention is drawn to the possibility that some of the elements of this document may be the subject of

patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of

any patent rights identified during the development of the document will be in the Introduction and/or

on the ISO list of patent declarations received (see www .iso .org/ patents).

Any trade name used in this document is information given for the convenience of users and does not

constitute an endorsement.

For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and

expressions related to conformity assessment, as well as information about ISO’s adherence to the

World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT), see www .iso .org/

iso/ foreword .html.

This document was prepared by Technical Committee ISO/TC 322, Sustainable finance.

Any feedback or questions on this document should be directed to the user’s national standards body. A

complete listing of these bodies can be found at www .iso .org/ members .html.
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ISO/TR 32220:2021(E)
Introduction

The practice of sustainable finance is evolving fast and is being endorsed by an increasing number of

regions, countries and economic entities with different focuses. Given this dynamic, there is a need

to inform users about basic concepts, key initiatives and terms in common use, in order to facilitate

communication among various types of financial market participants and stakeholders across wide

geographic regions.

To compile this document, many information sources were reviewed. These included international,

regional and national policies and frameworks, official websites and publications by multilateral

development financial institutions, international initiatives and organizations which contribute to

promoting, enabling and harmonizing sustainable finance practices worldwide, academic literature

and related International Standards.

Inclusion in this document demonstrates that a term has been widely accepted and used in the global

community of sustainable finance. However, its definition has not been formally endorsed through the

consensus-building process used for developing International Standards.

Each term includes at least one accessible source for its definition. Some terms refer to one or more

reference sources to provide the context for the definition. To improve ease of use, the listed key

sustainable finance concepts, initiatives and terms are grouped into five clauses:

— basic concepts (see Clause 4);
— principles, guidelines and regulation (see Clause 5);
— financial products and services (see Clause 6);
— verification, reporting and disclosure (see Clause 7);
— international initiatives and organizations (see Clause 8).

Additionally, the liaison ISO committees of ISO/TC 322 and standalone standards directly related to

sustainable finance are listed in Annex A.
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TECHNICAL REPORT ISO/TR 32220:2021(E)
Sustainable finance — Basic concepts and key initiatives
1 Scope

This document provides a non-exhaustive list of relevant basic concepts, key initiatives and terms

that are in common use in the global community of sustainable finance, and have been identified by

ISO/TC 322 as helpful to facilitate a greater understanding of the topics suggested by sustainable

finance practitioners, including but not limited to: financial regulators, development and commercial

banks, asset managers, investors, international initiatives and researchers.
The terms included in this document have been selected because they are:
— widely accepted and used in financial markets;

— sourced from supranational organization(s) or initiative(s), or national regulatory authorities;

NOTE With priority given to the source with the larger geographic coverage.

— likely to be used in documents from ISO/TC 322 and other related International Standards;

— of international prevalence and interest.
2 Normative references
There are no normative references in this document.
3 Terms and definitions
No terms and definitions are listed in this document.

ISO and IEC maintain terminological databases for use in standardization at the following addresses:

— ISO Online browsing platform: available at https:// www .iso .org/ obp
— IEC Electropedia: available at http:// www .electropedia .org/
4 Basic concepts

This clause outlines the basic concepts related to sustainable finance. In some instances, one source has

been cited, but in others several sources have been identified as appropriate, e.g. the term “sustainable

finance” has been used in many ways and this document identifies the four most appropriate

descriptions.
sustainable finance

Financing as well as related institutional and market arrangements that contribute to the achievements of

strong, sustainable, balanced and inclusive growth, through supporting directly and indirectly the framework

of the United Nations (UN) Sustainable Development Goals (SDGs).
[SOURCE: G20 Sustainable Finance Synthesis Report, Introduction, July 2018]

The process of taking due account of environmental and social considerations when making investment

decisions, leading to increased investment in longer-term and sustainable activities.

[SOURCE: European Commission website. Available from [last accessed 2021-03]: https:// ec .europa .eu/ info/

business -economy -euro/ banking -and -finance/ sustainable -finance/ overview -sustainable -finance _en

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ISO/TR 32220:2021(E)
sustainable finance
application of financial services to achieve the goal of sustainability

[SOURCE: PAS 7340:2020, Framework for embedding the principles of sustainable finance in financial services

organizations. Guide, 2.26]

incorporation of environmental, social, and governance (ESG) principles into business decisions, economic

development, and investment strategies

[SOURCE: International Monetary Fund. Global Financial Stability Report: Lower for Longer, Chapter 6:

Sustainable Finance, October 2019. Available from: https:// www .elibrary .imf .org/ view/ books/ 082/ 26206

-9781498324021 -en/ 26206 -9781498324021 -en -book .xml ?language = en & redirect = true #references]

sustainability

state of the global system, including environmental, social and economic aspects, in which the needs of the

present are met without compromising the ability of future generations to meet their own needs

[SOURCE: ISO 20400:2017, Sustainable procurement — Guidance, 3.33]
Further detail:

— The environmental, social and economic aspects interact, are interdependent and are often referred to as

the “three dimensions of sustainability”.
— Sustainability is the goal of sustainable development.
Sustainable Development Goals (SDGs)

The blueprint to achieve a better and more sustainable future for all. They address the global challenges we

face, including those related to poverty, inequality, climate change, environmental degradation, peace and

justice.
Further detail:

— The 17 goals are all interconnected and, in order to leave no one behind, it is important that all of them are

achieved by 2030.

[SOURCE: UN SDGs website. Available from [last accessed 2021-03]: https:// www .un .org/ sus tainablede

velopment/ sustainable -development -goals/ ]
sustainability taxonomy

classification system identifying activities, assets and revenue segments that deliver on key sustainability

goals based on the eligibility conditions set out by the taxonomy

[SOURCE: PAS 7340:2020, Framework for embedding the principles of sustainable finance in financial services

organizations. Guide, 2.24]
Further detail:

— Designed as a framework onto which existing (and future) definitions that are used in a variety of contexts

can be mapped, enabling comparability of different standards and products.

— A taxonomy is a framework that can be applied to a variety of financial instruments.

— The classification system is an evolving tool that requires continuous review and updating.

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ISO/TR 32220:2021(E)
green finance

financing of investments that provide environmental benefits in the broader context of environmentally

sustainable development

[SOURCE: G20 Green Finance Study Group. G20 Green Finance Synthesis Report, Summary, July 2016. Available

from: http:// www .g20 .utoronto .ca/ 2016/ green -finance -synthesis .pdf]

financial services provided for economic activities that are supportive of environment improvement, climate

change mitigation and more efficient resource utilization

[SOURCE: The People’s Bank of China et al. Guidelines for Establishing the Green Financial System (Yinfa 2016

Doc No. 228), 2016. Available from: http:// www .pbc .gov .cn/ english/ 130721/ 3133045/ index .html]

Further detail:

— These economic activities include the financing, operation and risk management for projects in areas such

as environmental protection, energy savings, clean energy, green transportation and green buildings.

climate finance

local, national or transnational financing—drawn from public, private and alternative sources of financing—

that seeks to support mitigation and adaptation actions that will address climate change

[SOURCE: UNFCCC Website. Available from [last accessed 2021-03]: https:// unfccc .int/ topics/ climate -finance/

the -big -picture/ introduction -to -climate -finance]
social finance

financing that supports actions mitigating or addressing a specific social issue and/or seeking to achieve

positive social outcomes especially but not exclusively for a target population(s)

[Adapted from source: ICMA. Sustainable Finance High-level definitions, May 2020. Available from: https:// www

.icmagroup .org/ assets/ documents/ Regulatory/ Green -Bonds/ Sustainable -Finance -High -Level -Definitions -May

-2020 -110520v4 .pdf]
microfinance

Loans, savings, insurance, transfer services and other financial products targeted at low-income clients.

[SOURCE: Wegner L. Microfinance: How Bankers Could Buy Back Their Soul. OECD Development Centre Policy

Insights, No. 31. OECD Publishing, Paris, 2006. Available from: https:// doi .org/ 10 .1787/ 244828638578]

blended finance

the strategic use of development finance for the mobilisation of additional finance towards sustainable

development in developing countries

[SOURCE: OECD website. Available from [last accessed 2020-08]: http:// www .oecd .org/ development/ financing

-sustainable -development/ blended -financeprinciples/ ]
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ISO/TR 32220:2021(E)
official development assistance (ODA)

government aid that promotes and specifically targets the economic development and welfare of developing

countries

[SOURCE: OECD website. Available from [last accessed 2021-03]: https:// www .oecd .org/ dac/ financing

-sustainable -development/ development -finance -standards/ official -development -assistance .htm]

Further detail:

— ODA is flows to countries and territories on the DAC List of ODA Recipients and to multilateral

development institutions that are: a) provided by official agencies, including state and local governments,

or by their executive agencies; and b) concessional (i.e. grants and soft loans) and administered with the

promotion of the economic development and welfare of developing countries as the main objective.

— DAC List of ODA Recipients: https:// www .oecd .org/ dac/ financing -sustainable -development/ development

-finance -standards/ daclist .htm
ESG investing (responsible investing)

strategies and practices that incorporate material ESG factors in investment decisions and active ownership

with a view to minimize risks and maximize returns

[SOURCE: ICMA. Sustainable Finance High-level definitions, May 2020. Available from: https:// www .icmagroup

.org/ assets/ documents/ Regulatory/ Green -Bonds/ Sustainable -Finance -High -Level -Definitions -May -2020

-110520v4 .pdf]
Further detail:
— ESG stands for “environmental, social and governance”.

— There has not been a standardized approach to evaluate ESG performance of investment portfolios,

although ESG ratings, benchmarks and indices are used by investors.

— Some ESG investing methodology includes “best in class/positive screening”, “negative screening/

exclusionary screening”, “sustainable thematic investing”, etc., see: https:// www .sustainablefinance .ch/

en/ glossary - _content - - -1 - -3077 .html
ESG integration

explicit and systematic inclusion of ESG issues in investment analysis and investment decisions

[SOURCE: PRI website. Available from [last accessed 2021-03]: https:// www .unpri .org/ fixed -income/ what -is

-esg -integration/ 3052 .article]
socially responsible investment (SRI)

investing with the aim of achieving financial returns while respecting specific ethical, environmental and/or

social criteria

[SOURCE: ICMA. Sustainable Finance High-level definitions, May 2020. Available from: https:// www .icmagroup

.org/ assets/ documents/ Regulatory/ Green -Bonds/ Sustainable -Finance -High -Level -Definitions -May -2020

-110520v4 .pdf]
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ISO/TR 32220:2021(E)
impact investment

investment made with the intention to generate positive, measurable social and environmental impact

alongside a financial return

[Adapted from source: GIIN website. Available from [last accessed 2021-03]: https:// thegiin .org/ impact

-investing/ need -to -know/ #what -is -impact -investing]
green technology (environmental technology)

technology that has the potential to significantly improve environmental performance relative to other

technology

[SOURCE: UN ESCAP. Low Carbon Green Growth Roadmap for Asia and the Pacific: Fact Sheet – Green Technology,

January 2012. Available from: https:// www .unescap .org/ sites/ default/ files/ 34 . %20FS -Green -Technology .pdf]

greenwashing

the practice of gaining an unfair competitive advantage by marketing a financial product as environmentally

friendly, when in fact it does not meet basic environmental standards

[SOURCE: Technical expert group on sustainable finance (TEG). Proposal for a Regulation of the European

Parliament and of the Council on the establishment of a framework to facilitate sustainable investment –

Approval of the final compromise text, December 2019. Available from: https:// data .consilium .europa .eu/ doc/

document/ ST -14970 -2019 -ADD -1/ en/ pdf]
sustainable supply chain

supply chain where purchasers and their suppliers can reduce operational risks, maintain profitability, and

meet the growing demand for organic, certified and sustainably produced goods by explicitly factoring social,

environmental, and governance criteria upstream, where raw materials are processed, and downstream to the

consumer

[SOURCE: IFC. Sustainable Finance Opportunities: Sustainable Supply Chain Finance, 2006. Available from:

https:// www .ifc .org/ wps/ wcm/ connect/ eea816de -4b76 -4d5b -b607 -665bfe5e6ac8/ FMS -EO -SupplyChain .pdf

?MOD = AJPERES & CVID = jkCUlzt]
sustainable infrastructure

infrastructure projects that are planned, designed, constructed, operated, and decommissioned in a manner to

ensure economic and financial, social, environmental (including climate resilience), and institutional

sustainability over the entire life cycle of the project

[SOURCE: UNEP Inquiry. Global Infrastructure Basel (GIB). Sustainable Infrastructure and Finance: How to

Contribute to a Sustainable Future, June 2016. Available from: http:// unepinquiry .org/ wp -content/ uploads/

2016/ 06/ Sustainable _Infrastructure _and _Finance .pdf]
environmental costs

costs connected with the actual or potential deterioration of natural assets due to economic activities

[SOURCE: OECD Statistics Portal website. Available from [last accessed 2021-03]: https:// stats .oecd .org/

glossary/ ]
© ISO 2021 – All rights reserved PROOF/ÉPREUVE 5
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ISO/TR 32220:2021(E)
greenhouse gas emission reduction (GHG emission reduction)

quantified decrease in GHG emissions between a baseline scenario and the GHG project

[SOURCE: ISO 14064-2:2019, Greenhouse gases — Part 2: Specification with guidance at the project level for

quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements, 3.1.7]

Further detail:

— Greenhouse gas (GHG): gaseous constituent of the atmosphere, both natural and anthropogenic, that

absorbs and emits radiation at specific wavelengths within the spectrum of infrared radiation emitted by

the Earth’s surface, the atmosphere and clouds.

— Baseline scenario: hypothetical reference case that best represents the conditions most likely to occur in

the absence of a proposed GHG project.

— GHG project: activity or activities that alter the conditions of a GHG baseline and which cause GHG

emission reductions or GHG removal enhancements.
carbon pricing

to put a price on carbon pollution as a means of bringing down emissions and drive investment into cleaner

options

[SOURCE: World Bank Website. Available from [last accessed 2021-03]: https:// www .worldbank .org/ en/

programs/ pricing -carbon #CarbonPricing]
Further detail:

— There are two main types of carbon pricing: emissions trading systems (ETS) and carbon taxes.

carbon credit

tradable certificate or permit that represents the right to emit a specified amount of greenhouse gases

[SOURCE: ISO 6707-3:2017, Buildings and civil engineering works – Vocabulary – Part 3: Sustainability terms,

3.6.20]
Further detail:

— The unit of one carbon credit is equal to one tonne of carbon dioxide emissions.

— Allows an organization to benefit financially from an emission reduction.
carbon offsetting

mechanism for compensating for all or for a part of the carbon footprint of a product or the partial carbon

footprint of a product through the prevention of the release of, reduction in, or removal of an amount of

greenhouse gas emissions in a process outside the product system under study
[SOURCE: ISO 14050:2020, Environmental management – Vocabulary, 3.11.5]
Further detail:

— Carbon footprint is the net amount of GHG emissions and GHG removals, expressed in CO equivalents.

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ISO/TR 32220:2021(E)
emissions trading system (ETS)

system whereby the government imposes a limit (cap) on the total emissions in one or more sectors of the

economy, and it issues a number of tradable allowances not exceeding the level of the cap

[SOURCE: World Bank website. Available from [last accessed 2020-08]: https:// www .worldbank .org/ en/

programs/ pricing -carbon]
Further detail:

— The advantage of an emissions trading system is that it permits compliance flexibility, allowing each

source to make a tailored choice in order to meet the target limit for emissions.

— There are two main types of trading systems: a) cap-and-trade systems, and b) baseline-and-credit

systems. In a cap-and-trade system, an upper limit on emissions is fixed, and emission permits are either

auctioned out or distributed for free according specific criteria. Under a baseline-and-credit system, there

is no fixed limit on emissions, but polluters that reduce their emissions more than they otherwise are

obliged to can earn “credits” that they sell to others who need them in order to comply with regulations

they are subject to.
social responsibility

responsibility of an organization for the impacts of its decisions and activities on society and the environment,

through transparent and ethical behaviour that

— contributes to sustainable development, including health and the welfare of society;

— takes into account the expectations of stakeholders;

— is in compliance with applicable law and consistent with international norms of behaviour; and

— is integrated throughout the organization and practised in its relationships.
[SOURCE: ISO 26000:2010, Guidance on Social Responsibility, 2.18]
Further detail:
— Activities include products, services and processes.

— Relationships refer to an organization’s activities within its sphere of influence.

CSR (corporate social responsibility)

a management concept whereby companies integrate social and environmental concerns in their business

operations and interactions with their stakeholders

[SOURCE: UNIDO Website. Available from [last accessed 2021-03]: https:// www .unido .org/ our -focus/

advancing -economic -competitiveness/ competitive -trade -capacities -and -corporate -responsibility/ corporate

-social -responsibility -market -integration/ what -csr]
disaster resilience

the capacity of a system, community or society potentially exposed to hazards to adapt, by resisting or

changing in order to reach and maintain an acceptable level of functioning and structure

[SOURCE: UNISDR. Hyogo Framework, 2005. Available from: https:// www .unisdr .org/ 2005/ wcdr/ intergover/

official -doc/ L -docs/ Hyogo -framework -for -action -english .pdf]
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ISO/TR 32220:2021(E)
climate resilience

the ability to anticipate, prepare for, and respond to hazardous events, trends, or disturbances related to

climate

[SOURCE: C2ES website. Available from [last accessed 2021-03]: https:// www .c2es .org/ content/ climate

-resilience -overview/ ]
Further detail:

— Governments and businesses are obtaining capital to invest in resilience projects through innovative

finance mechanisms such as green bonds and climate funds.
environmental-related risks

risks posed by the exposure of financial firms and/or the financial sector to activities that may potentially

cause or be affected by environmental degradation

[SOURCE: Network for Greening the Financial System (NGFS). First Comprehensive Report: A Call for Action-

Climate Change as a source of financial risk, April 2019. Available from: https:// www .ngfs .net/ sites/ default/

files/ medias/ documents/ ngfs _first _comprehensive _report _ - _17042019 _0 .pdf]

Further detail:

— Environmental degradation includes but is not limited to: air pollution, ware pollution and scarcity of

fresh water, land contamination, reduced biodiversity and deforestation.
climate-related risks

risks posed by the exposure of financial firms and/or the financial sector to physical or transition risks caused

by or related to climate change

[SOURCE: NGFS. First Comprehensive Report: A Call for Action-Climate Change as a source of financial risk, April

2019. Available from: https:// www .ngfs .net/ sites/ default/ files/ medias/ documents/ ngfs _first _comprehensive

_report _ - _17042019 _0 .pdf]
Further detail:

— Climate-related risks include transition and physical risks that can impact revenues, expenditures and

liabilities of financial institutions and non-financial groups.

— Description of transition and physical risks: https:// assets .bbhub .io/ company/ sites/ 60/ 2020/ 10/ FINAL

-2017 -TCFD -Report -11052018 .pdf
environmental risk assessment (ERA)

methods and modelling techniques used to size the financial impact of climate and environment-related risks

to micro-prudential objectives

[SOURCE: NGFS. First Progress Report, October 2018. Available from: https:// www .ngfs .net/ en/ first -progress

-report]
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ISO/TR 32220:2021(E)
environmental stress testing

an approach to quantify the environmental risk probably facing financial institutions by making use of the

stress testing methodology

[SOURCE: Research Bureau of the People’s Bank of China and the Green Finance Committee of China Society for

Finance and Banking. Green Finance Terminology Handbook, 2018]
Further detail:

— The process is as follows: determine the stress taker and stress indicators; select the stress factors and

indicators, build the stress conduction model; analyse the stress test results; and bring forward the

policies and suggestions, see: https:// www .trucost .com/ publication/ internalization -of -environmental

-costs -for -investment -stress -testing/
stranded asset

asset that has suffered from unanticipated or premature write-downs, devaluations, or conversion to

liabilities

[SOURCE: Caldecott B., Howarth N., McSharry P. Stranded Assets in Agriculture: Protecting Value from Envi-

ronment-Related Risks. Smith School of Enterprise and the Environment, University of Oxford, 2013. Available

from: https:// www .smithschool .ox .ac .uk/ publications/ reports/ stranded -assets -agriculture -report -final .pdf]

Further detail:

— Inter-American Development Bank (IDB) adopted the definition in its report Stranded Assets: A Climate

Risk Challenge, 2016.
green financial system

the institutional arrangement that utilizes financial instruments such as green credit, green bonds, green

stock indices and related products, green development funds, green
...

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