As our social, environmental and cultural conscience continues to evolve, so do our decisions. Creating a better future calls for teamwork and the collaborative action of different industries and players of society. The financial sector has the power to produce great change, providing funding that can promote the development of projects or businesses that support the greater good.

If you’re interested in financial management and also care about having a positive impact, then studying ethical finance might be just for you.

What is Ethical Finance?

As its name suggests, ethical finance integrates ethics and finance to engage in practices that not only consider an economic return, but also focus on environmental, social and governance (ESG) factors.

Environmental factors are those affecting the natural world, such as climate change, waste reduction and the use of sustainable resources. Social factors are the ones concerning local and global communities, such as health and safety, working conditions, and inclusion.

On the other hand, governance factors refer to internal structure of both public and private organizations and their decision-making processes, such as transparency, employee relations, board diversity, and their stance on bribery and corruption.

Ethical finance has accuracy, honesty, and justice at the heart of every financial transaction, aiming to promote and deliver measures with positive socio-environmental impact.

Though governance is sometimes overlooked, it’s also important that corporations are held accountable for their management and inner-workings. Therefore, sectors considered unethical, such as arms, gambling and tobacco, or companies involved in corruption or corporate scandals, are not included in these practices.

Types of Ethical Finance

Financial activities can affect many different areas of society. Ethical finance is divided in three main categories, allowing individuals and businesses to identify the one that better suits their needs and values.

Green Finance

Investments are geared towards ‘green’ projects and business activities that protect and benefit the environment.

Social Finance

Stakes are made available for projects that tackle specific social issues, or aim to benefit a particular sector of society.

Sustainability-linked Finance

In this case, funds are not directed towards any particular project, but instead are assessed and measured against ESG factors.

Ethical Finance Benefits Everyone

With the financial sector turning towards more sustainable practices, companies are starting to realize the importance of integrating positive social impact into their business model.

Transparency, ethics, and social responsibility, are now key factors that cannot be ignored. Apart from its socio-environmental benefits, this approach also provides a competitive advantage for corporations.

The future is clearly sustainable, and as such, requires motivated re-solutionaries willing to work hard to deliver value to society. Ethical finance serves as a great way to align your personal life values with your career, studying with a purpose and sharing this purpose with the world.

At Advantere we stand for a re-solutionary approach to learning, helping you embark on a journey beyond your comfort zone to make a difference both as a professional and as a person.

If you are re-solved to advance your career in finance while being a motor for positive change, then our Master in Finance may be the perfect choice for you.