Towards a finance that CARES
Résumé
Today's sustainable finance mainly relies on the extension of a particular classical capital theory to extra-financial types of capital (in particular human and natural). We call (and justify it) this mainstream theory, the Fisherian-(falsified) Hicksian approach. After a critical analysis of this model, we claim that this way of conceptualising sustainable finance is finally unsustainable. At the same time, we also defend the idea that there is a convergence between ecological-based sustainability (which we can call by definition a genuine sustainability) and the extension of the traditional accounting framework to extra-financial types of capital. Therefore, we propose to structure a sustainable finance from this perspective (which we call CARES, for Capital Approach Resting on Ecological-based Sustainability): after having defined how to operationalise and theorize such a sustainable accounting, thanks to the " Triple Depreciation Line " model (Rambaud & Richard, 2015), we use this model to redefine the notion of free cash-flows to make them " sustainable ". We finally discuss the manner they can be used for financing purposes.
Origine : Fichiers produits par l'(les) auteur(s)
Loading...