First, as we have seen, it is only interested in the maximisation of financial profits through high turnover and does not have a real concern in the quality of its investments but so long as they are profitable investments. This means that there is no ethical consideration of investments, or no consideration of “bad” externalities in the calculation of financial profits.
Further, accounting and reporting systems do not adequately convey potential environmental risks and therefore, financial markets are compelled to make decisions on exposures based on biased information. 38. Thirdly, though financial markets are supposed to help to manage risks and deal with uncertainty, it is also true that higher turnover and enlarging risks leads to higher profits.