How Sustainable Finance Is Shifting the Future of Investing

Running head: SUSTAINABLE FINANCE
Sustainable Finance
Name of the University
Name of the student
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Table of Contents
Answer to Part 1:.............................................................................................................................3
Brief industry overview of ESG priorities for global telecommunication:.....................................3
Accounting metrics for measuring ESG priorities as per SASB are:..............................................4
SASB ESG priority analysis:...........................................................................................................4
ESG priorities for British telecom:..................................................................................................5
Issues reported by nonprofit stakeholders are as follows:...............................................................5
Further information required to make decisions:.............................................................................6
Recommendation for making decision based on available data:.....................................................7
Answer to Part 2:.............................................................................................................................8
Answer to Part 3:...........................................................................................................................10
Answer to Part 4:...........................................................................................................................13
Financial model of Green Real estate investment trust:................................................................13
Metrics for measuring environmental impact of REIT:................................................................14
Actual financial performance of Green real Estate Investment trust:............................................15
Answer to Part 5:...........................................................................................................................15
Analysis of Asian impact investing fund:......................................................................................15
Financial model of Lotus impact:..................................................................................................17
Operating model of Lotus impact:.................................................................................................17

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Metrics for measuring environmental and social impact:..............................................................18
Financial performance of Lotus funds:..........................................................................................18
Reference:......................................................................................................................................19

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Answer to Part 1:
Brief industry overview of ESG priorities for global telecommunication:
The telecommunications industry are scored based on three environmental, social and
governance (ESG) factors. Accounting standard under SASB (Sustainability accounting
standard) for the telecommunication industries provides the companies with accounting metrics
for accounting the performance in terms of sustainability. Wire line and wireless are the two
main segments of the telecommunication industry. They are heavily influenced by the data
resulting from the expansion of electronic gadgets. When the telecommunication industry are
required to make disclosure about their performance with respect to the sustainability, there are
identified accounting metrics by SASB (Aziakpono et al. 2014). Concerning the sustainability
topic, it is required by companies to make a narrative description of any material factors that is
considered essential for ensuring comparability, completeness and accuracy of data being
reported. For measuring the ESG priorities of the telecommunication industry, following
accounting metrics has been provided in accordance with SASB. Metrics comprised of
accounting and activity metrics. Activity metrics needs to make disclosure about contextual
information and they are deemed generally useful for some accounting metrics (Benjamin 2013).
Activity metrics are as follows:
 Subscribers of broadband services
 Subscribers of wire line services
 Subscribers of wireless services
 Network traffic, percentage on cellular network and percentage on fixed network

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Accounting metrics for measuring ESG priorities as per SASB are:
 Total energy consumption by fixed and cellular networks, percentage grid energy and
percentage renewable energy.
 Another metrics is related to privacy of data and it involves discussion of policies relating
to usage and collection of information about customers. Settlement associated with
privacy of customers and amount of regulatory and legal fines.
 Metrics concerning technological disruptions involves duration and frequency of average
interruption.
 Metrics related to data security number of data security breaches and management
addressing security risks related to data.
 Regarding competitive behavior, metrics involves settlement associated with anti-
competitive prices, regulatory and legal fines.
SASB ESG priority analysis:
European Telecommunications Network Operators' Association has chosen to pursue a
systematic approach to integrating environmental, social and governance factors throughout the
entire investment cycle for managing risks and enhancing returns. The commitment of
association is create a long lasting positive impact and going beyond the business interest and
extending themselves as role model in corporate responsibility. It has also adopted the global
sustainability reporting guidelines. Organization makes the communication about business and
ESG performance in an integrated manner (Berensmann et al. 2017). Social and environmental
issues of the association are reported in relation to strategies and concepts explaining business
works.

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ESG priorities for British telecom:
British telecom are committed to carry out their operating activities in accordance with
the ethics and business integrity for maintaining highest standard in corporate governance and
financial reporting. Areas where the telecom is making material impact are measured and
managed by organizations. Some of the state’s list of ESG priorities are as follows:
 Reducing the footprint of carbon and assisting the customers in reducing theirs with the
help of technology. Cutting the carbon footprint and helping customers to cut their
emissions by three times of own carbon impact.
 Extending the commitment to United Kingdom education through the ambition of new
tech literacy. Reserving the paradox of people of UK who are growing up as technology
consumers by helping children with computer thinking and coding skills.
 Protecting consumers from online threats, supporting human rights and improving
conditions with the suppliers.
 Reducing the savings of energy by replacing energy intensive air conditioning with
adiabatic cooling units, installation of energy efficient rectifier units and installations of
energy efficient lights.
Issues reported by nonprofit stakeholders are as follows:
There is a loss of legitimacy, return on investments have affected nonprofits stakeholders,
and they are increasingly being questioned about their works and expenses. Non-profits are faced
with increased pressure to perform. Human resource is regarded as the most underappreciated
element of non-profit organizations. Some of the other issues related to stakeholders of
organization includes managing ESG risks in business activities, valuing workplace and people,
pursuing products and services through an ESG focus and advancing environmental