Sustainable Banking: New Forms of Investing under the Umbrella of the 2030 Agenda
1
Department of Market Research and Quantitative Methods, ESIC Business & Marketing School, Pozuelo de Alarcón, 28223 Madrid, Spain
2
Department of Finance and Market Research, Autonomous University of Madrid, 28049 Madrid, Spain
*
Author to whom correspondence should be addressed.
Sustainability 2020, 12(5), 2096; https://doi.org/10.3390/su12052096
Received: 11 February 2020 / Revised: 29 February 2020 / Accepted: 6 March 2020 / Published: 9 March 2020
(This article belongs to the Special Issue Sustainable Banking: Issues and Challenges)
(1) Social Impact Bonds (SIBs) foster the relationships between public and private sectors while adding value to new forms of investment that are closely linked to Socially Responsible Investments (SRIs). In this context, Sustainable Developments Goals (SDGs) aim to strengthen global partnerships in order to achieve the 2030 Agenda. Sustainable banking should consider its role in both new responsible investment products and the 2030 Agenda. This study aims to: (i) estimate the ROI of SIBS, (ii) define a financial formulation and a measurement system, and (iii) explain the relationship between SIBs and SDGs. (2) This research analyzes SIBs from an SDG approach, and proposes a valuation model based on a financial options valuation methodology that clarifies the financial value of the world’s first SIB (Peterborough Prison, UK). (3) Findings suggest that investors expect to have a negative return of 16.48%, and that this expected loss may be compensated for by the short- and long-term positive impact of an intervention in society. (4) It is shown that SIBs provide an opportunity to reach SDG 17 and improve sustainable investment portfolios, while providing an opportunity to strengthen a company’s Corporate Social Responsibility policy and its corporate reputation.
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Keywords:
Corporate Social Responsibility (CSR); Sustainable Developments Goals; SDG; Social Impact Bonds; Valuation; Peterborough SIB
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MDPI and ACS Style
Méndez-Suárez, M.; Monfort, A.; Gallardo, F. Sustainable Banking: New Forms of Investing under the Umbrella of the 2030 Agenda. Sustainability 2020, 12, 2096. https://doi.org/10.3390/su12052096
AMA Style
Méndez-Suárez M, Monfort A, Gallardo F. Sustainable Banking: New Forms of Investing under the Umbrella of the 2030 Agenda. Sustainability. 2020; 12(5):2096. https://doi.org/10.3390/su12052096
Chicago/Turabian StyleMéndez-Suárez, Mariano, Abel Monfort, and Fernando Gallardo. 2020. "Sustainable Banking: New Forms of Investing under the Umbrella of the 2030 Agenda" Sustainability 12, no. 5: 2096. https://doi.org/10.3390/su12052096
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