Sustainable finance

Sustainable Finance

Meaning statusEstablishedSource recordDirect document linkedWhy these are different

definitionPOJK 51/2017 — Sustainable Finance · POJK 51/POJK.03/2017

Definition

Sustainable finance is the process of taking environmental, social and governance considerations into account when making investment and lending decisions, so that capital flows support long-term, sustainable economic activity. The field spans ESG integration in asset management, labelled instruments (green, social, sustainability and sustainability-linked bonds and loans), taxonomies defining sustainable activities, disclosure regimes (SFDR, CSRD, ISSB), and stewardship — coordinated in the EU by the sustainable finance action plan and globally by networks of regulators and central banks.

References

Indonesiadefinition

comprehensive support from the financial services sector for sustainable growth created by aligning economic, social and environmental interests.

POJK 51/2017 — Sustainable FinancePOJK 51/POJK.03/2017 · verified 2026-08-22Official text

finance.ec.europa.euBulk import source

Source imported for editorial provenance.

Source organisationSupporting reference

This reference provides supporting context for how “Sustainable Finance” is defined and used.

Overview

How it is used

The concept structures regulatory frameworks, institutional investment strategy, bank lending policy, and the product architecture of ESG funds and green instruments.

Why it matters

The transition is, in large part, a capital reallocation problem; sustainable finance is the machinery built to perform it.