Blended finance and the SDGs: Using the spectrum of capital to de-risk business model transformation

Vanina Farber; Patrick Reichert

doi:10.1007/978-3-031-26959-2_5

Blended finance and the SDGs: Using the spectrum of capital to de-risk business model transformation

Vanina Farber
, Patrick Reichert

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

2 Scopus citations

Abstract

The longstanding debate of whether environmental, social and governance (ESG) issues impact financial performance appears to have given way to identifying the best way for firms to achieve long-term sustainability. In this essay, we suggest that overlaying ESG issues with the United Nations’ Sustainable Development Goals (SDGs) provides an avenue for firms to transition to sustainable business models. To this end, the pursuit of sustainable opportunities via blended finance, mechanisms whereby the private sector, nonprofits and public actors work together in an effort to tackle the most pressing global challenges, could help to de-risk private sector involvement in sustainable development. We argue that de-risking occurs through three mechanisms: (1) identification of material ESG issues for firms, (2) the use of subsidy via blended finance instruments, and (3) trust brokering from civil society and public sector actors. Through two illustrative case studies, we identify the challenges and opportunities of blended finance to serve as a tool to meet Agenda 2030.

Original language	English
Title of host publication	Measuring sustainability and CSR
Subtitle of host publication	From reporting to decision-making
Editors	Slobodan Kacanski, Johannes Kabderian Dreyer, Kristian J. Sund
Publisher	Springer Science and Business Media B.V.
Pages	37-48
Number of pages	12
ISBN (Electronic)	978-3-031-26959-2
ISBN (Print)	978-3-031-26958-5, 978-3-031-26961-5
DOIs	https://doi.org/10.1007/978-3-031-26959-2_5
State	Published - 2023
Externally published	Yes

Publication series

Name	Ethical Economy
Volume	64
ISSN (Print)	2211-2707
ISSN (Electronic)	2211-2723

Bibliographical note

Publisher Copyright:
© 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy
SDG 8 Decent Work and Economic Growth
SDG 13 Climate Action
SDG 17 Partnerships for the Goals

Access to Document

10.1007/978-3-031-26959-2_5

Cite this

Farber, V., & Reichert, P. (2023). Blended finance and the SDGs: Using the spectrum of capital to de-risk business model transformation. In S. Kacanski, J. K. Dreyer, & K. J. Sund (Eds.), Measuring sustainability and CSR: From reporting to decision-making (pp. 37-48). (Ethical Economy; Vol. 64). Springer Science and Business Media B.V.. https://doi.org/10.1007/978-3-031-26959-2_5

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Blended finance and the SDGs: Using the spectrum of capital to de-risk business model transformation. / Farber, Vanina; Reichert, Patrick.
Measuring sustainability and CSR: From reporting to decision-making. ed. / Slobodan Kacanski; Johannes Kabderian Dreyer; Kristian J. Sund. Springer Science and Business Media B.V., 2023. p. 37-48 (Ethical Economy; Vol. 64).

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

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Blended finance and the SDGs: Using the spectrum of capital to de-risk business model transformation

Abstract

Publication series

Bibliographical note

UN SDGs

Access to Document

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Cite this