Sustainable Finance Research Centre

Welcome to the Sustainable Finance Research Centre

The global conversation surrounding sustainable development revolves around intertwining environmental considerations with societal concerns to promote human well-being while safeguarding the needs of future generations. This paradigm shift marks a departure from mere economic growth towards a holistic approach to development.

The concept of "sustainable development" was introduced in the landmark Brundtland Report of 1987. In response, the United Nations established the World Commission on Environment and Development to tackle urgent global challenges. The commission's report, titled "Our Common Future," set the stage for the Earth Summit in 1992 and the subsequent formation of the Commission on Sustainable Development.

Addressing sustainability demands a multidisciplinary effort. While disciplines such as natural and social sciences have long embraced sustainability, the realms of finance and investment have recently joined the conversation. New branches like ESG (Environmental, Social, and Governance), climate risk, and green finance have emerged to address these concerns.

The growing importance of sustainability in finance and investment, coupled with the urgent climate crisis, underscores the necessity for academic research to both refine theoretical frameworks and emphasize empirical studies seeking nature-positive solutions. To bridge the gap between research and industry practice, we established the Sustainable Finance Research Centre in collaboration with the Institute of Finance at Corvinus University of Budapest.

Our center conducts empirical research on how financial markets and investments impact sustainability. As environmental and societal challenges become more acute, there's a growing need to reassess asset ownership, shareholder value, funding true costs, and evaluating the full impact, including externalities. The responsibility for a sustainable future lies with all stakeholders—individuals, businesses, and governments alike.

Our lateset working paper on Biodiversity Risk Premium is available on SSRN.