Sustainable Finance: Features and Perspectives
DOI:
https://doi.org/10.62911/ete.2023.01.01.01Keywords:
green growth, sustainability, sustainable finance, financial markets, capital market, asset allocation, investment decisions, banks, corporate financeAbstract
The aim of the article is to explore the level of development and maturity of the concept of sustainable financing, examine its components and defining characteristics, and assess the trends in its development. Several research questions have been formulated: What is the essential content of the definition of «sustainable financing», and what evolutionary changes have occurred in the conceptual approach to financing sustainable development? What can be identified as the peculiarities of the concept of sustainable financing and the content and changes in its main components? What is the current state of development of the global and European sustainable investing market and its prospects for development? It was established that evolution of the concept has led to fundamental shifts in the understanding of investment principles and distinctions between responsible investing and sustainable development investing based on ESG principles: under the former approach, the goal of financial market participants is to mitigate the risks associated with transitioning to sustainable development, while under the second approach - to benefit from the realization of sustainable development opportunities. The opinion is expressed that based on the set of signs and patterns, it is possible to state a break in the existing system of views on capital allocation processes in financial markets, and according to the degree of maturity, this break indicates the transition from the "concept" to the "paradigm" of sustainable financing. It is argued that the peculiarities of sustainable financing are determined by its components, its goal function, the diverse spectrum of financial market participants, and the financial instruments. Sustainable finance has been found to help transform both economies and societies through more responsible development and investment around the world, but its development trends in recent years have been influenced by geopolitical factors such as pandemics and war.
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