On September 17th, a new session of the FLIP Project took place, this time organized by our team at Kehsia. The focus of the session was one of the most urgent and transformative topics facing Europe today: sustainable finance.
As young Europeans, understanding how money flows can help (or harm) the planet is no longer optional. It’s a necessity. This session provided a deep dive into the new tools, policies, and strategies the European Union is deploying to build a sustainable financial system, one that supports a greener, fairer, and more resilient future.
WHAT IS SUSTAINABLE FINANCE?
Sustainable finance refers to the process of channeling financial resources into activities that benefit the environment and society, while still generating economic value. It’s about more than just profit: it’s about investing with purpose.
In the past, financial systems focused purely on maximizing returns and minimizing risk. But today, if your project isn’t sustainable, you’re unlikely to receive funding. That’s how high the stakes are. Understanding this shift is essential, not only for those pursuing careers in finance or sustainability, but for anyone who wants to be part of the solution.
During the session, we explored the four key instruments the European Union has introduced to enable this financial transformation:
- The European Green Deal
- The EU Taxonomy
- The Sustainable Finance Disclosure Regulation (SFDR)
- The European Investment Bank (EIB)
Launched in 2018, the Green Deal is the EU’s flagship strategy to become the first climate-neutral continent by 2050. It’s not just an environmental plan—it’s a complete overhaul of how Europe grows its economy, with a focus on resource efficiency, social inclusion, and competitive sustainability.
EU Taxonomy is essentially a classification system that defines which economic activities can be considered sustainable. The taxonomy helps investors identify and support projects that are aligned with the EU’s climate and environmental goals. It’s a crucial step toward a transparent, trustworthy sustainable finance market.
The SFDR (Sustainable Finance Disclosure Regulation) requires financial institutions to disclose the sustainability impact of their products. It creates three categories:
- Article 6: Products with no sustainability objective
- Article 8 (“light green”): Products promoting environmental or social characteristics
- Article 9 (“dark green”): Products with a specific sustainable investment goal
This categorization helps investors make informed decisions and encourages the financial sector to step up its sustainability game.
The EIB (European Investment Bank) is one of the largest multilateral financial institutions in the world. It provides climate-focused funding both within and outside the EU. Through loans and investments, the EIB supports projects that align with EU policies, making it a key player in financing Europe’s green transition.
REDEFINING FINANCE: FROM PROFIT TO PURPOSE
At the core of this shift is the need to redefine what finance is for. Traditional finance looks only at financial return potential and investment risk. But in today’s world, we need a model that also considers impact, especially on the environment and society.
This is where ESG (Environmental, Social, and Governance) factors come in. By including these in financial decisions, investors can ensure they are supporting projects that do good in the world, not just those that do well on paper.
We also explored what it means to invest with a conscious commitment to change. Impact investing goes beyond ESG screening. It actively seeks to make a positive difference, and its key elements include:
- Intentionality: A clear goal to create measurable social or environmental benefits
- Evidence-Based Design: Using data and research to shape investments
- Impact Management: Tracking outcomes to ensure investments deliver on their goals
- Industry Contribution: Sharing knowledge to strengthen the whole impact investment ecosystem
WHY THIS MATTERS ESPECIALLY FOR YOUNG PEOPLE
This isn’t just a topic for economists or politicians. Young people have a critical role to play in this transition.
- Protecting our future: Climate change, inequality, and social justice are defining challenges of our generation. Sustainable finance directs capital toward the solutions.
- Aligning values with investments: Today’s youth care about where their money goes. They want to support causes like clean energy, fair labor, and community growth.
- New career opportunities: The green economy is creating exciting new roles, like ESG analysts, Green Project Managers, and Climate Risk Officers. These are jobs that allow young people to make a living while making a difference.
The FLIP Project session was more than just a lecture: it was a call to action. The tools are there. The policies are in place. Now it’s up to us, the next generation of European citizens, to engage, learn, and take part in shaping a sustainable future.
At Kehsia, we’re proud to be part of this conversation. And we’re even more proud to help others discover the power of sustainable finance, not just as a trend, but as a new way of thinking about money, responsibility, and the future of our planet.
Because now, truly, it’s our turn.