Axis 3: Strategic Mutations, Risks and Financial Sustainability

This axis focuses on the adaptations of financial market structures -in a broad sense- engendered by the adoption of the United Nations' agenda on sustainable development in September 2015. It particularly concerns public policy initiatives concerning sustainable development and the environment of low, or even negative, interest rates, which have impacted both the governance and the financing of the economy. Thus, national (PACTE law) and supra-national (European Green Pact) strategies have stimulated companies, financial institutions and institutional investors to build their credibility as creators of long-term wealth. Under this implicit pressure linked to the risks inherent to a sustainable development strategy (climate risk, ESG risk, liquidity risk, default risk, regulatory risk), the market has rapidly adopted innovative financial instruments (green and impact debt, mini-bonds, retirement savings products), leading to a transformation of investor and financial intermediary behaviors, combined with new financial practices (seed capital, Initial Coin Offering-ICO). Such a paradigm shift entails challenges in terms of financial stability, regulation, as well as voluntary standards (IFRS, development of performance indicators and ESG rating systems) and the repositioning of the shareholder-state through strategic changes in industrial structures and institutions.