A ground-breaking work that addresses a crucial challenge facing our planet and the finance discipline, this book discusses key omissions in finance theory, principles, and equations, and explores recent developments in sustainable finance/ESG integration. It reveals a spaceless analytical framework and a sustainability debate that avoids the very logic of money creation. A theoretical treatise on sustainability in finance, the book makes the case for the hardwiring of sustainability into financial mathematics, offering a complementary principle and new equations for the purpose, while also discussing the implications of such a transformation for money mechanics.
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Book Foreword by Dr. Saker Nusseibeh, CBE
Our understanding of Finance and Investment is lacking an essential component, namely, its interaction with the rest of the world. Finance and Investment do not stand in splendid isolation and yet this is how we have long chosen to model our understanding of the dynamics at play between all the different actors and components involved. This gap is precisely what Dr Armen Papazian bridged in his book The Space Value of Money. The clue was in the subtitle – he promised Rethinking Finance Beyond Risk & Time, a notion that is long overdue, and duly delivered.
In this book, Dr Papazian goes a step further, this time discussing sustainability in financial mathematics, drawing once again on his concept of the space value of money. Although significant strides have already been made to properly account for our environmental and social impacts, this book’s contribution is to advance our thinking with respect to the intricacies of accounting frameworks and standards, as well as money mechanics. Much remains to be done.
No one else has attempted to properly include concepts of sustainability in finance and investing in the way that the author does. This book should serve as the perfect tool to reformat our understanding of the topic and also to educate those that come after us.
Finance has a critical role to play and embedding it within the twenty first century requires that we broaden our horizons – this is what this book allows the reader to achieve.
Dr. Saker Nusseibeh, CBE
Chief Executive Officer
Federated Hermes Limited
Book Reviews
“Dr. Papazian’s Space Value of Money concept addresses sustainability in microeconomics and
macroeconomics—it critically updates and accounts for the additional dimension. This should be compulsory reading for all students of finance and investing.”
—Eoin Murray, Head of Investment, Federated Hermes Limited
“At a time when the climate crisis drives home the point for urgent action, and ESG measurements
have come under intense scrutiny, one can hardly overstate the importance of this book. Rigorous
and comprehensive, it offers an investment impact measurement methodology and answers the key financial question of our times: how can we fund the transition to a sustainable world? A finance handbook for the future.”
—Dr. Matteo Cominetta, Head of Macroeconomic Research, Barings LLC
“In the bewildering and ever-swelling sea of acronyms that now covers the world of sustainable finance, Dr. Armen Papazian’s laser-like focus on the financial mathematics of investment value and return is a most welcome addition to the profession’s navigation skills.”
—George Littlejohn, Senior Adviser, Chartered Institute for Securities & Investment
“This is a brave book—it highlights inconvenient truths about the financial mathematics of
investment that guides the global flow of capital and offers thought through solutions. It is a must
read for anyone concerned with planetary sustainability.”
—Adrian Webb, Founder & Director, Space Value Foundation
Event Location: Auditorium, One Moorgate Place, London
Selection of Suppliers
Armen is a financial economist, author, consultant and innovator with a track record in global finance and more than 20 years’ experience in sustainable finance, capital markets, and analytics. Armen is a Doctor of Financial Economics from Cambridge University and couples extensive advisory experience for financial institutions and markets with research into both the academic and practical aspects of sustainable finance challenges. More
He is the author of ‘The Space Value of Money: Rethinking Finance Beyond Risk and Time’ (2022) and one of the founders of Space Value Foundation, which campaigns to embed sustainability into the very core equations of finance, allowing a global transition in business and industry. The Space Value Foundation takes its name from the principle and model proposed by Armen in his recently published book.
