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Prospective Innovation at Ethical Banking and Finance

Vol:0, №:0, Year:2013

Fostering Sustainable Finances: The consideration of a Third Party Certification Program

Blanca Fernandez Milan
Land use, Infrastructure and Transport - Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH
Germany

Abstract
Sustainable development is an ongoing process based on a set of principles that have to continue to spread throughout all economic activities. Looking at the current economic scenario, the transformation of the financial sector appears crucial. I define a common understanding of sustainable finances through the identification of those characteristics appearing repeatedly in the literature, stressing the dynamism of the concept. Powerful drivers towards sustainable practices in strong profit-oriented markets are sustainable consumer behaviour and social expectations. Mixed methodology is used to analyse the current and future scenarios of sustainable finances from the consumer perspective. The study focuses on the potential to foster sustainability and on the long-term competitiveness. Although there are strengths and opportunities for further development, there are also threats that need immediate solutions. As a consequence of the financial crisis, society is seeking new alternatives and sustainable finances should be considered as an indispensable one. Nevertheless, public mistrust leads to the necessity of supporting and protecting those truly sustainable initiatives within the financial sector. This research concludes with the idea of a third party certification system as a tool to protect and enhance the adequate development of sustainable finances.

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Key words
Investor rationality, Financial Institution, Financial Service, Standard.

Citation
Blanca Fernandez Milan (2013), Fostering Sustainable Finances: The consideration of a Third Party Certification Program in Leire San-Jose, Jose Luis Retolaza (eds.) Prospective Innovation at Ethical Banking and Finance (Studies in Philosophy, Law and Economics), - Sumy: Vinnychenko M.D., pp.78-99. Available at http://taadler.com/a34

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