Finance in Transition

Loorbach, Derk; Schoenmaker, Dirk; Schramade, Willem

Finance in Transition

Loorbach, D., D. Schoenmaker and W. Schramade (2020), Finance in Transition: Principles for a positive finance future, Rotterdam School of Management, Erasmus University, Rotterdam.

100 Pages Posted: 19 Jan 2021

See all articles by Derk Loorbach

Derk Loorbach

Dutch Research Institute for Transitions

Dirk Schoenmaker

Rotterdam School of Management, Erasmus University; Erasmus Research Institute of Management (ERIM); Centre for Economic Policy Research (CEPR)

Willem Schramade

Nyenrode Business University

Date Written: November 18, 2020

Abstract

Finance in Transition discusses the transition from traditional finance to transition finance. The current pattern of unsustainable economic development is supported by the global financial system, whose goal function is to create ever more financial value. Traditional finance is based on the concept of shareholder value.

This paper develops new principles for a sustainable financial system. These guiding principles are: 1) from shareholder to integrated value, which combines financial, social and environmental value; 2) stewardship based on a direct link between financiers and companies; and 3) capital allocation based on long-term societal value.

Keywords: Financial, Social and Environmental Risks and Value, Transition, Sustainable Finance, Sustainable Development

JEL Classification: G11, G21, H23, H41, Q01

Suggested Citation: Suggested Citation

Loorbach, Derk and Schoenmaker, Dirk and Schramade, Willem, Finance in Transition (November 18, 2020). Loorbach, D., D. Schoenmaker and W. Schramade (2020), Finance in Transition: Principles for a positive finance future, Rotterdam School of Management, Erasmus University, Rotterdam. , Available at SSRN: https://ssrn.com/abstract=3732696