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| The Emerging World of Environmental Finance | |
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| Introduction | |
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| An Emerging Field | |
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| Why Is It Happening at This Particular Time? | |
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| Lessons Learned | |
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| How Might Environmental Finance Prepare Us for the Challenges Ahead? | |
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| Conclusion | |
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| Concepts and Tools for Developing Environmental Finance | |
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| Introduction | |
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| Environmental Management and Shareholder Value Creation | |
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| Environmental Management Systems | |
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| Stakeholder Relationships | |
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| Looking Ahead: Scenarios and Simulations | |
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| Tools for Risk Transfer | |
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| Traditional Insurance Mechanisms | |
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| Tapping into the Capital Markets | |
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| Trading Atmospheric Emission Reduction Credits | |
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| Conclusion | |
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| The Financial Services Sector | |
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| Introduction | |
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| Structure of the Global Market for Financial Capital | |
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| Forces Reshaping Financial Service Industries | |
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| Globalization and Market Forces | |
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| Technology | |
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| Deregulation | |
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| Core Financial Services | |
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| Response of the Financial Services Sector to Deregulation | |
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| Consolidation | |
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| Environmental Implications of Organizational Change | |
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| Delivery of Personal Financial Services | |
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| Financial Services' Approach to Environmental Issues | |
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| Conclusion | |
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| Endnotes | |
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| Banking | |
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| Introduction | |
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| Commercial Banking | |
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| Direct Liability of Contaminated Land | |
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| United States | |
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| Canada | |
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| European Union | |
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| Asia and South America | |
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| Brownfield Redevelopment | |
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| Risk Management | |
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| Environmental Products and Services | |
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| Niche Markets and Microcredit | |
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| Internal Environmental Management | |
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| UNEP Financial Institutions Initiative | |
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| Measurements and Reporting of Environmental Management | |
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| VfU | |
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| EPI-Finance 2000 | |
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| The Natural Step | |
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| Investment Banking | |
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| Climate Change: Risks and Opportunities for the Banking Sector | |
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| Risks | |
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| Opportunities | |
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| Sustainable Energy Funds | |
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| Pure Carbon Funds | |
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| Private Equity Funds with Carbon Credit-Enhanced Internal Rate of Return | |
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| Future Private Equity Funds | |
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| The Price of Carbon | |
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| Reputational Risk | |
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| Conclusion | |
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| Web Sites | |
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| Insurance | |
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| Introduction | |
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| Angus Ross, Invited Author's Comment | |
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| Contaminants in the Environment | |
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| Landfills and Superfund | |
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| Underground Storage Tanks | |
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| Asbestos | |
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| Contaminated Land | |
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| Lead Paint | |
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| Common Lessons from Asbestos and Environmental Problems | |
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| Climate Change and Extreme Weather Events | |
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| Transferring Risk from the Insurance Industry to the Capital Markets | |
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| Regional Variations in the Response of Insurance Companies to the Environmental Challenge | |
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| Conclusion | |
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| Endnote | |
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| Investments | |
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| Introduction | |
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| Evolution of Screening for Social and Environmental Responsibility | |
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| The Relationship between Environmental and Financial Performance | |
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| Measures of Environmental Management | |
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| Measures of Environmental Expenditures | |
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| Sources of Information | |
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| Performance of Environmentally Screened Funds | |
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| Variation in Research Results | |
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| Definition and Measurement | |
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| Data Selection | |
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| Analytical Approaches | |
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| Financial Measures | |
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| Socially Responsible Investment Portfolio Performance Ratings | |
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| Institutional Portfolio Managers | |
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| Shareholder Activism | |
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| Pension Funds | |
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| Mutual Funds | |
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| Corporate Perspective on Shareholder Activism | |
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| Environmental Products in Fund Management | |
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| Environmental Research and Rating Organizations | |
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| Liability Systems | |
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| Compliance Systems | |
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| Environmental and Social Strategic Systems | |
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| Weightings | |
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| Investable Indexes | |
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| Dow Jones Sustainability Indexes | |
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| FTSE4Good | |
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| Conclusion | |
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| Endnotes | |
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| Web Sites | |
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| Climate Change and Financial Vulnerability | |
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| Introduction | |
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| Accepting Climate Change as a Real Phenomenon | |
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| Physical Impacts of Climate Change | |
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| Vulnerability by Economic Sector | |
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| Anticipating Human Response to Climate Change | |
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| Critical Factors in Human Response to Climate Change | |
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| The Future of the Kyoto Convention | |
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| Taxes on Energy and Carbon Emissions | |
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| Trading Credits for Carbon Dioxide Emissions Reduction | |
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| Other Flexible Mechanisms | |
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| Commitment from Developing Countries | |
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| Conclusion | |
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| Web Sites | |
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| Environmental Reporting and Verification | |
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| Introduction | |
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| Trends in Environmental Reporting | |
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| Main Types of Environmental Reporting | |
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| Involuntary Reporting | |
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| Self-Regulation and Voluntary Reporting | |
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| Mandated Reporting | |
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| Pollution Release and Transfer Registers | |
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| North America | |
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| Europe | |
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| Asia-Pacific | |
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| Accounting Profession and Security Regulators | |
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| Accounting Disclosure Requirements | |
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| Securities and Exchange Commission | |
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| Environmental Reporting from the Preparer's Perspective | |
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| Environmental Reporting from the User's Perspective | |
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| Progress in Environmental Reporting | |
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| Environmental Measurements and Benchmarking | |
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| Verification of Environmental Performance and Reporting | |
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| Emergence of Internet-Based Environmental Reporting | |
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| The Global Reporting Initiative | |
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| Alan Willis, Invited Author's Comment | |
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| Conclusion | |
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| Web Sites | |
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| Strategies for Managing Environmental Change | |
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| Introduction | |
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| Greenhouse Gas Emission Targets: Rationale, Types, and Methods | |
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| Green Housekeeping | |
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| Environmental Reporting | |
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| Global Monitoring | |
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| Climate Change Programs | |
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| National Carbon Reduction Initiatives | |
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| Government/Private Sector Climate Change Initiatives | |
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| Private Sector Initiatives | |
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| New Weather-Related Products | |
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| Catastrophe Bonds and Swaps | |
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| Weather Derivatives | |
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| Trading Pollution Reduction Credits | |
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| Conclusion | |
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| Endnotes | |
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| Web Sites | |
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| The Way Ahead | |
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| Introduction | |
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| Business and Environmental Change: What's New? | |
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| The New Paradigm | |
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| Data Quality | |
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| Leadership | |
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| Environmental Change: From Challenge to Opportunity | |
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| The Environmental Learning Curve: Redefining Success | |
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| Appendix A | |
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| UNEP Statement by Financial Institutions on the Environment and Sustainable Development | |
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| List of Signatories to the UNEP Statement by Financial Institutions on the Environment and Sustainable Development | |
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| UNEP Statement of Environmental Commitment by the Insurance Industry | |
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| Status of the UNEP Statement of Environmental Commitment by the Insurance Industry | |
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| Appendix B | |
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| Appendix C | |
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| Acronyms | |
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| References | |
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| Index | |