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.

Additional Metadata
Publisher Bruegel
ISBN 978-90-78910-43-5
Persistent URL
Series Bruegel Essay and Lecture Series
Schoenmaker, D. (2017). Investing for the common good. Bruegel Essay and Lecture Series. Bruegel. Retrieved from