The aim of this volume is to foster more sustainable business models through financial markets. To that end, it is necessary to know the main global challenges facing financial markets and their impact on creating sustainable value in business models of enterprises in the context of sustainable adaptation. The book focuses on assessing the decision criteria adopted by financial markets in the process of transaction risk valuation, in terms of the presence of Environmental, Social, and Governance (ESG) criteria, and by assessing the impact of including these criteria in the risk assessment process by financial markets in business decisions, leading as a consequence to building new value in the form of a sustainable business model.
The book presents global ESG risks facing the financial markets, and discusses how ESG risks are managed and monitored, and how financial markets can measure and operationalize extra-financial risks in its assessment process. The book also analyses ESG risk implications and influences on company behavior, and the actions that companies should take considering the ESG assessment requirements of financial markets. Finally, it provides a comprehensive, structured, and systematic view of how financial markets and companies should adapt and improve their business models. The book provides unique challenges for investors, companies, financial markets, and for our society as a whole, advancing traditional risk management approaches to address global risks.
Author(s): Magdalena Ziolo, Elena Escrig-Olmedo, Rodrigo Lozano
Series: Strategies for Sustainability
Publisher: Springer
Year: 2022
Language: English
Pages: 182
City: Cham
Introduction
Contents
Chapter 1: Addressing the New Global Challenges and Risks in Financial Market
1 Evolution of Risk Concept and Risk Classifications
2 Emergence of ESG Risk Factors in Risk Management Models
3 The Changes in Global Risk Landscape and Emerging Key Risks
4 Climate Change as a Key Risk
5 Fiscal and Financial Instability Risks: Reinforced Due to COVID-19 Pandemic
6 Technological Challenges
6.1 Data Governance and Cloud Computing
6.2 Cybersecurity Control Failures
7 Supply Chain Disruptions
8 Conclusion
References
Chapter 2: Interdependencies Between Sustainable Financial Market and Sustainable Business
1 Introduction
2 Financial Markets and Environmental, Social, and Management Criteria
3 Determinants of Changes in Financial Markets Towards Sustainable Business Practices
4 Sustainable Decision Criteria Adopted by Financial Institutions in the Financial Market
5 Conclusions
References
Chapter 3: Corporate Sustainability and Value Creation: A Perspective of Companies and the Financial Market
1 Introduction
2 Development of Companies Towards Creating Sustainable Value
3 Empirical Material and Methods
3.1 Stages in the Employed Research Procedure
3.2 Literature Review: Identification of Keywords
3.3 Quantitative Analysis: Stage 2
3.4 In-Depth Content Analysis: Stage 3
4 Conclusions
References
Chapter 4: ESG Risk in Financial Decisions of Financial Markets and Companies
1 Introduction
2 Financial Decisions: Theoretical Framework
3 ESG Risk and Its Impact on the Performance of Enterprises and Financial Market Institutions
4 ESG Risk in Financial Decisions Made by Financial Market Institutions
5 Implementation and Management of ESG Risk in Enterprises and Financial Market Institutions
6 Conclusions
References
Chapter 5: Analyzing the Links Between Financial Markets’ ESG Risk Assessment Process and Corporate Sustainability
1 Introduction
2 Theoretical Framework
2.1 CRAs and ESG Risk Assessment
2.2 Global Risks
3 Methodology
4 Results
4.1 Corporate Sustainability Assessment Market
4.2 ESG Risks Analyzed by Rating Agencies vs. Current Global Risks
5 Conclusions
Appendix I: Global Risks Analyzed by SRAs
References
Chapter 6: Business Models for Sustainable Value Creation in Companies and Financial Markets
1 Introduction
2 The Triple Layered Business Model Canvas (TLBMC) as an Example of Sustainable Business Model Management
2.1 Business Models: Approaching, Definitions and Concepts
3 The Role of 3BL Aspects in Implementing Innovative Business Models
4 Innovative Tools for Managing Sustainable Business Models
5 ESG Criteria: The Context of How Financial Markets Impact an Organisation’s Operations
5.1 ESG: Definition, Criteria and Areas
5.2 Stakeholders’ Roles in Implementing ESG in Innovative Business Models
5.3 Advantages and Disadvantages of Implementing ESG Criteria in Organisations
6 SD, TLBMC and ESG in the Context of Value Addition and the Win–Win Paradigm
7 Conclusion
References
Chapter 7: Sustainable Adaptation of Companies Through Financial Markets
1 Introduction
2 Sustainable Adaptation
3 Alternative Scenarios of Sustainable Adaptation of Enterprises Through the Financial Market: Case Study.
3.1 Scenario of a Sustainable Bank Adaptation: The Example of BNP Paribas
3.2 Scenario of a Sustainable Adaptation of the Stock Exchange: The Example of Luxembourg Stock Exchange
3.3 Scenario of a Sustainable Adaptation of Enterprises: The Example of Grupa Azoty Zakłady Azotowe “Puławy” Spółka Akcyjna
3.4 Sustainable Adaptation Towards Building Sustainable Value of Enterprises and Financial Institutions
4 Conclusion
References
Index
