ABSTRACT
Until recently, the financial markets’ recognition of environmental performance was restricted to legal liabilities and to negative risk factors. Today, a growing number of players within the financial markets are starting to factor environmental considerations into their thinking—albeit not all at the same pace. Insurers and bankers are naturally concerned about the financial risks posed by specific environmental issues, such as climate change. But some are also recognising that good environmental performance can translate into shareholder value. What’s been missing, however, are metrics that would allow financial markets to measure eco-efficiency so that it makes sense on the balance sheet.
