Traditional finance focuses solely on financial return and risk. By contrast, sustainable finance considers financial, social and environmental returns in combination. This essay provides a new framework for sustainable finance highlighting the move from the narrow shareholder model to the broader stakeholder model, aimed at long-term value creation for the wider community. Major obstacles to sustainable finance are short-termism and insufficient private efforts. To overcome these obstacles, this essay develops guidelines for governing sustainable finance.

Bruegel Essay and Lecture Series
Rotterdam School of Management (RSM), Erasmus University

Schoenmaker, D. (2017). Investing for the common good. Bruegel Essay and Lecture Series. Bruegel. Retrieved from