Green Asset Ratio (GAR)

Green Asset Ratio (GAR)

Glossary · 28/12/2023

Green Asset Ratio (GAR)

The Green Asset Ratio (GAR) is a financial indicator that assesses the sustainability of a bank or financial institution’s assets. The GAR measures the percentage of ‘green’ or sustainable assets out of the financial institution’s entire portfolio. These ‘green’ assets may include: Loans Investments Other assets related to sustainable projects such as renewable energy, energy [...]

The Green Asset Ratio (GAR) is a financial indicator that assesses the sustainability of a bank or financial institution’s assets .

The GAR measures the percentage of ‘green’ or sustainable assets out of the financial institution’s entire portfolio.

These ‘green’ assets may include:

  • Loans
  • Investments
  • Other assets related to sustainable projects such as renewable energy, energy efficiency or low environmental impact projects
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