Which factor is NOT considered in sustainable finance?

In the context of sustainable finance, the primary focus is on integrating environmental, social, and governance (ESG) factors into financial decision-making. This approach aims to promote long-term sustainability and positive societal impact alongside financial performance.

Environmental impacts are crucial as they assess how investments contribute to sustainability efforts, including climate change mitigation and resource conservation. Social responsibility addresses how businesses impact society, including labor practices, community engagement, and human rights. Governance aspects are equally critical for evaluating the structure and practices of corporations in terms of accountability, transparency, and ethical business conduct.

While corporate profitability remains an important consideration for any business or investment, it does not inherently align with the objectives of sustainable finance, which prioritize the long-term viability and ethical implications of financial activities over short-term financial gains. Sustainable finance seeks to balance financial returns with social and environmental responsibilities, rather than focusing solely on profitability.