FRAMEWORK FOR GREEN INVESTMENT DECISION-MAKING TOWARDS SDG 12 ALIGNMENT

Abstract

The objective of SDG 12 is to sustain consumption and production, which are pivotal strategies that should be adopted to promote sustainable environmentally in the consumption and production process and management of natural resources

Specification

Description:FORM 2
THE PATENTS ACT, 1970
(39 OF 1970)
&
THE PATENTS RULES, 2003
COMPLETE SPECIFICATION
(See section 10; rule 13)



Title: Framework for Green Investment Decision-Making Towards SDG 12 Alignment



APPLICANT DETAILS:
(a) NAME: GRAPHIC ERA DEEMED TO BE UNIVERSITY
(b) NATIONALITY: Indian
(c) ADDRESS: 566/6, Bell Road, Society Area, Clement Town, Dehradun - 248002,
Uttarakhand, India







PREAMBLE TO THE DESCRIPTION:
The following specification particularly describes the nature of this invention and the manner in which it is to be performed.



Framework for Green Investment Decision-Making Towards SDG 12 Alignment

Field of the Invention:
The invention relates to SDG 12-Aligned Investment Decision means the Investment Decisions that are oriented on the implementation of the Sustainable Development Goal 12 responsible for «Responsible consumption and production".
Object of the Invention:
The objective of SDG 12 is to sustain consumption and production, which are pivotal strategies that should be adopted to promote sustainable environmentally in the consumption and production process and management of natural resources.
Detailed description of the Invention:
Key Aspects of SDG 12-Aligned Investment Decision:
1. Sustainable Resource Use: SDG 12 Targets concerns sustainable consumption and production and this implies that financing must be allocated to support activities or entities that increase the effective use of natural resources. These are for example Renewable Energy, Water/Waste Water, Utilities, Sustainable Food/Water/Feed, and Resource Efficient Manufacturing.
2. Waste Minimization and Circular Economy: The initiatives within which such investments are made seek to fund activities that involve minimizing waste, recycling, and creating goods or services that increase the durability of the product. The re-utilization and recycling playing a pivotal role in the execution of this concept, are an important component of the circular economy.
3. Pollution Reduction: Efforts are made to achieve environmental changes by financing industries and projects that seek to decrease the pollution index, industrial processes, transport facilities, or waste disposal systems.
4. Sustainable Supply Chains: Choices that entail postures that enhance corporations with manageable and low-impact supply chains, especially in issues of raw material acquirement, production, and logistics.
5. Sustainable Agriculture and Food Systems: SDG 12 focuses on building sustainable agricultural practices and techniques, soil management, and farming technologies that can help increase the productivity of the agricultural sector for internationally sustainable food systems.
6. Consumer Awareness and Education: This means funding should be given to a campaign, technology, or system that informs the consumer on the correct uses of products and conservation.
Overview of the Model
The model presented is a conceptual framework that visualizes the relationship between various factors contributing to SDG 12-Aligned Investment Decisions, which is related to Sustainable Development Goal 12. It also advocates for the arts for Sustainable Consumption and Production.
Components of the Model



Model- "Framework for Green Investment Decision-Making Towards SDG 12 Alignment"
Source- Author's work

The key elements of the model depicting "Framework for Green Investment Decision-making towards SDG-12 alignment" are:
1. Green Investment Capacity:
This is the total of funds (financial, technical, human, or other) that are available to an entity to undertake 'green' investments. It includes both financial capital and the level of development of the supporting framework for investment in sustainability.
Influences:
a) Environmental Stewardship Investment Focus: More capacity means less tendency toward resource wastage hence, more likely that more investments will be channeled to environmentally responsible projects.
b) Green Portfolio Strategy: Greater green investment capacity influences the stronger tactics on preserving a portfolio with assets made from green investment.
2. Green Risk Tolerance:
This factor focuses on market risks willing to take an investor in green investments. It may be caused by the fluctuating performance in the market of sustainable segments, the changes in policies, or the risks associated with new technologies.

Influences:
a) Environmental Stewardship Investment Focus: The ability of investors to risk their finances towards potentially higher and risky environmental projects may be enhanced.
b) Green Portfolio Strategy: The level of risk that people are willing to endure determines the kind and diversification of sustainable investment assets. This implies that higher risk tolerance may lead to risk diversification in green technologies and industries.
3. Green Risk Appetite:
This is discussed about risk tolerance but it goes a notch higher to do with the strategic intent or propensity of an entity to invest in green projects with different risks. It is consistent with the broad approach in terms of risk-taking as well.

Influences:
a) Environmental Stewardship Investment Focus: There could thus be a higher risk appetite for green project investment as the search for these assets widens.
b) Green Portfolio Strategy- Directs funds investment into portfolios that may have green technologies, new economy sustainable business, or risky sustainable projects.
4. Environmental Stewardship Investment Focus:
This is a core area of the entity's investment plan on sustainable and environment-friendly projects. It is influenced by the investment capacity, the risk tolerance, and the risk appetite.

Leads to:
SDG 12 -Aligned Investment Decision: The pro-environment efforts of an organization directly contribute to the subject organization's positioning to implement investment decisions that correspond to SDG 12, responsible consumption and production.
5. Green Portfolio Strategy:
The approach outlines how investment choices for and management of assets in a portfolio emphasize green or sustainable resources. Sensitivity to risk and investor capacity, therefore, determine the strategy.

Leads to:
SDG 12 -Aligned Investment Decision: It is thus a great strategy for making an investment decision that will align with SDG 12. It also ensures the investments being made achieve the aim of sustainability and consuming responsibly.
6. SDG 12-Aligned Investment Decision: Based on identified SDG12 parameters, the investment decision can be made which is the result of interaction between the above factors. Funds that are linked to SDG 12 focus on the goal where consumption and production must be made sustainable thus seeking to avoid wastage while enhancing the use of available resources.
Driven by:
A combination of environmental stewardship investment focus and a structured green portfolio strategy shape decisions that support the responsible use of resources and sustainable economic growth.
Relationships:
a) Investment Capacity, Risk Tolerance, and Risk Appetite are antecedents of Environmental Stewardship Investment Focus and Green Portfolio Strategy formation.
b) These two (investment focus and portfolio strategy) then lead to an SDG 12-Aligned Investment Decision meaning that; the investments made are sustainable and support the responsible production and consumption agenda of the SDGs.

In summary, the model presents how green investment factors like capacity, risk tolerance, and risk appetite influence key strategic decisions (environmental focus and portfolio strategy) that ultimately lead to sustainable investment decisions aligned with SDG 12.

The model provides guidelines for green investment decisions that can be aligned with the responsibility consumption and production aspect of SDG 12. It highlights the interplay between critical factors like Green Investment Capacity, Green Risk Tolerance, and Green Risk Appetite, which serve as antecedents influencing two primary intermediate outcomes: Environmental Stewardship Investment Focus and Green Portfolio Strategy. These intermediate outcomes, in turn, drive the final investment decision-making process towards SDG 12 alignment.
Combined in this manner, these factors guarantee that investment strategies contribute positively towards the theme, together with a concept of stewardship and responsible risk-taking. This comprehensive approach helps investors to make informed, strategic decisions that contribute to the achievement of global sustainability goals, specifically fostering resource-efficient and sustainable development.


, Claims:FORM 2
THE PATENTS ACT, 1970
(39 OF 1970)
&
THE PATENTS RULES, 2003
COMPLETE SPECIFICATION
(See section 10; rule 13)



Title: Framework for Green Investment Decision-Making Towards SDG 12 Alignment



APPLICANT DETAILS:
(a) NAME: GRAPHIC ERA DEEMED TO BE UNIVERSITY
(b) NATIONALITY: Indian
(c) ADDRESS: 566/6, Bell Road, Society Area, Clement Town, Dehradun - 248002,
Uttarakhand, India







PREAMBLE TO THE DESCRIPTION:
The following specification particularly describes the nature of this invention and the manner in which it is to be performed.



Framework for Green Investment Decision-Making Towards SDG 12 Alignment

Field of the Invention:
The invention relates to SDG 12-Aligned Investment Decision means the Investment Decisions that are oriented on the implementation of the Sustainable Development Goal 12 responsible for «Responsible consumption and production".
Object of the Invention:
The objective of SDG 12 is to sustain consumption and production, which are pivotal strategies that should be adopted to promote sustainable environmentally in the consumption and production process and management of natural resources.
Detailed description of the Invention:
Key Aspects of SDG 12-Aligned Investment Decision:
1. Sustainable Resource Use: SDG 12 Targets concerns sustainable consumption and production and this implies that financing must be allocated to support activities or entities that increase the effective use of natural resources. These are for example Renewable Energy, Water/Waste Water, Utilities, Sustainable Food/Water/Feed, and Resource Efficient Manufacturing.
2. Waste Minimization and Circular Economy: The initiatives within which such investments are made seek to fund activities that involve minimizing waste, recycling, and creating goods or services that increase the durability of the product. The re-utilization and recycling playing a pivotal role in the execution of this concept, are an important component of the circular economy.
3. Pollution Reduction: Efforts are made to achieve environmental changes by financing industries and projects that seek to decrease the pollution index, industrial processes, transport facilities, or waste disposal systems.
4. Sustainable Supply Chains: Choices that entail postures that enhance corporations with manageable and low-impact supply chains, especially in issues of raw material acquirement, production, and logistics.
5. Sustainable Agriculture and Food Systems: SDG 12 focuses on building sustainable agricultural practices and techniques, soil management, and farming technologies that can help increase the productivity of the agricultural sector for internationally sustainable food systems.
6. Consumer Awareness and Education: This means funding should be given to a campaign, technology, or system that informs the consumer on the correct uses of products and conservation.
Overview of the Model
The model presented is a conceptual framework that visualizes the relationship between various factors contributing to SDG 12-Aligned Investment Decisions, which is related to Sustainable Development Goal 12. It also advocates for the arts for Sustainable Consumption and Production.
Components of the Model



Model- "Framework for Green Investment Decision-Making Towards SDG 12 Alignment"
Source- Author's work

The key elements of the model depicting "Framework for Green Investment Decision-making towards SDG-12 alignment" are:
1. Green Investment Capacity:
This is the total of funds (financial, technical, human, or other) that are available to an entity to undertake 'green' investments. It includes both financial capital and the level of development of the supporting framework for investment in sustainability.
Influences:
a) Environmental Stewardship Investment Focus: More capacity means less tendency toward resource wastage hence, more likely that more investments will be channeled to environmentally responsible projects.
b) Green Portfolio Strategy: Greater green investment capacity influences the stronger tactics on preserving a portfolio with assets made from green investment.
2. Green Risk Tolerance:
This factor focuses on market risks willing to take an investor in green investments. It may be caused by the fluctuating performance in the market of sustainable segments, the changes in policies, or the risks associated with new technologies.

Influences:
a) Environmental Stewardship Investment Focus: The ability of investors to risk their finances towards potentially higher and risky environmental projects may be enhanced.
b) Green Portfolio Strategy: The level of risk that people are willing to endure determines the kind and diversification of sustainable investment assets. This implies that higher risk tolerance may lead to risk diversification in green technologies and industries.
3. Green Risk Appetite:
This is discussed about risk tolerance but it goes a notch higher to do with the strategic intent or propensity of an entity to invest in green projects with different risks. It is consistent with the broad approach in terms of risk-taking as well.

Influences:
a) Environmental Stewardship Investment Focus: There could thus be a higher risk appetite for green project investment as the search for these assets widens.
b) Green Portfolio Strategy- Directs funds investment into portfolios that may have green technologies, new economy sustainable business, or risky sustainable projects.
4. Environmental Stewardship Investment Focus:
This is a core area of the entity's investment plan on sustainable and environment-friendly projects. It is influenced by the investment capacity, the risk tolerance, and the risk appetite.

Leads to:
SDG 12 -Aligned Investment Decision: The pro-environment efforts of an organization directly contribute to the subject organization's positioning to implement investment decisions that correspond to SDG 12, responsible consumption and production.
5. Green Portfolio Strategy:
The approach outlines how investment choices for and management of assets in a portfolio emphasize green or sustainable resources. Sensitivity to risk and investor capacity, therefore, determine the strategy.

Leads to:
SDG 12 -Aligned Investment Decision: It is thus a great strategy for making an investment decision that will align with SDG 12. It also ensures the investments being made achieve the aim of sustainability and consuming responsibly.
6. SDG 12-Aligned Investment Decision: Based on identified SDG12 parameters, the investment decision can be made which is the result of interaction between the above factors. Funds that are linked to SDG 12 focus on the goal where consumption and production must be made sustainable thus seeking to avoid wastage while enhancing the use of available resources.
Driven by:
A combination of environmental stewardship investment focus and a structured green portfolio strategy shape decisions that support the responsible use of resources and sustainable economic growth.
Relationships:
a) Investment Capacity, Risk Tolerance, and Risk Appetite are antecedents of Environmental Stewardship Investment Focus and Green Portfolio Strategy formation.
b) These two (investment focus and portfolio strategy) then lead to an SDG 12-Aligned Investment Decision meaning that; the investments made are sustainable and support the responsible production and consumption agenda of the SDGs.

In summary, the model presents how green investment factors like capacity, risk tolerance, and risk appetite influence key strategic decisions (environmental focus and portfolio strategy) that ultimately lead to sustainable investment decisions aligned with SDG 12.

The model provides guidelines for green investment decisions that can be aligned with the responsibility consumption and production aspect of SDG 12. It highlights the interplay between critical factors like Green Investment Capacity, Green Risk Tolerance, and Green Risk Appetite, which serve as antecedents influencing two primary intermediate outcomes: Environmental Stewardship Investment Focus and Green Portfolio Strategy. These intermediate outcomes, in turn, drive the final investment decision-making process towards SDG 12 alignment.
Combined in this manner, these factors guarantee that investment strategies contribute positively towards the theme, together with a concept of stewardship and responsible risk-taking. This comprehensive approach helps investors to make informed, strategic decisions that contribute to the achievement of global sustainability goals, specifically fostering resource-efficient and sustainable development.

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