Sustainable Finance and Green Bonds: Bridging the Gap Between Protability and Environmental Responsibility
DOI:
https://doi.org/10.37296/esci.v5i1.189Keywords:
Sustainable Finance, Green Bonds, Profitability, Environmental ResponsibilityAbstract
This study aims to explore the role of sustainable finance and green bonds in bridging the gap between corporate profitability and environmental responsibility. With the increasing global demand for sustainable investment, green bonds are emerging as a financial instrument that allows companies to integrate environmental aspects into their business strategies without sacrificing financial gains. This study uses descriptive analysis methods and case studies to assess the impact of green bonds on the company's financial performance and environment. The results of the study show that investing in green bonds not only drives long-term economic benefits, but also improves the company's image in social and environmental responsibility. These findings underscore the importance of integration between economic benefits and environmental sustainability in the modern financial world.
References
Akomea-Frimpong, I., Adeabah, D., Ofosu, D., & Tenakwah, E. J. (2022). A review of studies on green finance of banks, research gaps and future directions. Journal of Sustainable Finance and Investment, 12(4), 1241–1264. https://doi.org/10.1080/20430795.2020.1870202
Billio, M., Costola, M., Hristova, I., Latino, C., & Pelizzon, L. (2024). Sustainable Finance: A Journey Toward ESG and Climate Risk. International Review of Environmental and Resource Economics, 18(1–2), 1–75. https://doi.org/10.1561/101.00000156
Cicchiello, A. F., Cotugno, M., Monferrà, S., & Perdichizzi, S. (2022). Credit spreads in the European green bond market: A daily analysis of the COVID-19 pandemic impact. Journal of International Financial Management and Accounting, 33(3), 383–411. https://doi.org/10.1111/jifm.12150
D’Orazio, P., & Popoyan, L. (2019). Fostering green investments and tackling climate-related financial risks: Which role for macroprudential policies? In Ecological Economics (Vol. 160, Issue 778). https://doi.org/10.1016/j.ecolecon.2019.01.029
Dziwok, E., & Jäger, J. (2021). A Classification of Different Approaches to Green Finance and Green Monetary Policy. Sustainability, 13(21), 11902. https://doi.org/10.3390/su132111902
Gabor, D. (2019). Securitization for Sustainability: Does it help achieve the Sustainable Development Goals? https://eu.boell.org/sites/default/files/2019-11/SecurSust.pdf
Kumar, L., Nadeem, F., Sloan, M., Restle-Steinert, J., Deitch, M. J., Ali Naqvi, S., Kumar, A., & Sassanelli, C. (2022). Fostering Green Finance for Sustainable Development: A Focus on Textile and Leather Small Medium Enterprises in Pakistan. Sustainability (Switzerland), 14(19), 1–24. https://doi.org/10.3390/su141911908
Liu, N., Liu, C., Xia, Y., Ren, Y., & Liang, J. (2020). Examining the coordination between green finance and green economy aiming for sustainable development: A case study of China. Sustainability (Switzerland), 12(9). https://doi.org/10.3390/su12093717
Mendez, A., & Houghton, D. P. (2020). Sustainable banking: The role of multilateral development banks as norm entrepreneurs. Sustainability (Switzerland), 12(3), 1–21. https://doi.org/10.3390/su12030972
Migliorelli, M., & Dessertine, P. (2018). Time for new financing instruments? A market-oriented framework to finance environmentally friendly practices in EU agriculture. Journal of Sustainable Finance and Investment, 8(1), 1–25. https://doi.org/10.1080/20430795.2017.1376270
Partridge, C., & Medda, F. R. (2020). Green bond pricing: The search for greenium. Journal of Alternative Investments, 23(1), 49–56. https://doi.org/10.3905/jai.2020.1.096
Pyka, I., & Nocoń, A. (2021). Banks’ capital requirements in terms of implementation of the concept of sustainable finance. Sustainability (Switzerland), 13(6). https://doi.org/10.3390/su13063499
Schäfer, H. (2023). Sustainable Finance – A Conceptual Outline. SSRN Electronic Journal, 49(0), 1–44. https://doi.org/10.2139/ssrn.4322341
Tolulope Esther Edunjobi. (2024). Sustainable supply chain financing models: Integrating banking for enhanced sustainability. International Journal of Multidisciplinary Research Updates, 7(2), 001–011. https://doi.org/10.53430/ijmru.2024.7.2.0030
Udeagha, M. C., & Muchapondwa, E. (2023). Green finance, fintech, and environmental sustainability: fresh policy insights from the BRICS nations. International Journal of Sustainable Development and World Ecology, 30(6), 633–649. https://doi.org/10.1080/13504509.2023.2183526
Weber, O., & Saravade, V. (2019). Green Bonds: Current Development and Their Future. Center for International Governance Innovation, 210, 1–32. https://www.cigionline.org/sites/default/files/documents/Paper no.210_0.pdf
