Taming Unsustainable Finance : The Perils Of Modern Risk Management

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dc.contributor.author Cullen, Jay
dc.contributor.author Mähönen, Jukka Tapio
dc.contributor.editor Sjåfjell, Beate
dc.contributor.editor Bruner, Christopher M.
dc.date.accessioned 2020-02-26T17:27:01Z
dc.date.available 2020-02-26T17:27:01Z
dc.date.issued 2019-11
dc.identifier.citation Cullen , J & Mähönen , J T 2019 , Taming Unsustainable Finance : The Perils Of Modern Risk Management . in B Sjåfjell & C M Bruner (eds) , The Cambridge Handbook of Corporate Law, Corporate Governance and Sustainability . , 8 , Cambridge Law Handbooks , Cambridge University Press , Cambridge , pp. 100-113 . https://doi.org/10.1017/9781108658386.013
dc.identifier.other PURE: 128659708
dc.identifier.other PURE UUID: 11d20512-e19b-4cec-87d8-d96e3c9796cc
dc.identifier.other ORCID: /0000-0003-1354-8940/work/70953396
dc.identifier.uri http://hdl.handle.net/10138/312357
dc.description.abstract A traditional response to information asymmetries in financial markets has been to require disclosure and heightened transparency in investment chains. We argue in this chapter that the trust placed in such regulatory techniques will fail to deliver sustainable investment for two reasons. The first is the structure of equity markets, which are focused on shareholder returns and excessive turnover of portfolios, preventing meaningful engagement with companies. The second is that both investors and intermediaries make a category error in placing trust in modern risk management to quantify the financial risks from climate change and other environmental changes. Our analysis leads us logically to three micro- and macroprudential policy prescriptions, namely: increasing the capital requirements on assets with so-called ‘brown’ credentials; reforming bank stress tests to reflect the uncertain financial implications of environmental damage; and pivoting central bank bond buying programmes toward green financial assets. en
dc.format.extent 14
dc.language.iso eng
dc.publisher Cambridge University Press
dc.relation.ispartof The Cambridge Handbook of Corporate Law, Corporate Governance and Sustainability
dc.relation.ispartofseries Cambridge Law Handbooks
dc.relation.isversionof 9781108473293
dc.relation.isversionof 9781108658386
dc.relation.isversionof 9781108589208
dc.rights cc_by
dc.rights.uri info:eu-repo/semantics/openAccess
dc.subject 513 Law
dc.subject uncertainty
dc.subject risk
dc.subject climate change
dc.subject banks
dc.subject financial markets
dc.title Taming Unsustainable Finance : The Perils Of Modern Risk Management en
dc.type Chapter
dc.contributor.organization Faculty of Law
dc.description.reviewstatus Peer reviewed
dc.relation.doi https://doi.org/10.1017/9781108658386.013
dc.rights.accesslevel openAccess
dc.type.version acceptedVersion

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