Sustainable Finance as a Way of European Companies’ Transition to Green Economy

Shalneva, M. S.; Zinchenko, Yuliya V.

doi:10.1007/978-3-030-00102-5_106

Cited by 5 publications

(3 citation statements)

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“…Recently, numerous studies have been conducted worldwide on green finance [6,10,[15][16][17][18]. These studies mostly focused on the recent trends, problems and opportunities for the development of green finance to achieve sustainable development goals (SDGs).…”

Section: Introductionmentioning

confidence: 99%

Green Finance Development in Bangladesh: The Role of Private Commercial Banks (PCBs)

et al. 2021

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Green finance (GF) has been gaining significant attention in recent literature, owing to the rise in global actions against the climate change. It is conceptually ambiguous, with no conclusive agreement among researchers on its meaning. Therefore, the main purpose of the study is to identify the bankers’ perception of various dimensions of GF, and identify the major challenges affecting its implementation in Bangladesh. Besides, this study also reveals the status of GF in Bangladesh’s banks and non-bank financial institutions from 2014 to 2019. In order to define the key aspects of GF through the data obtained from 296 banking staffs of private commercial banks (PCBs) in Bangladesh, confirmatory factor analysis (CFA) was used. The study also used descriptive statistics to identify the major challenges hindering the development of GF in Bangladesh. The findings of this study show that, in comparison with other banks and non-bank financial institutions, the PCBs are the largest contributors to direct GF, accounting for 74.2% of the total GF in Bangladesh. The outcomes of the study also identify the “economic dimension” as the most significant dimension affecting the level of bankers’ perceptions of GF. Moreover, the bankers perceived the “social and environmental dimensions” as being the second and third most crucial factors influencing GF, followed by sources of green financing. The empirical findings indicate that bankers of PCBs deemed the level of awareness, beliefs and understanding of the major dimensions of GF and sources of green financing to be satisfactory for the implementation of GF in Bangladesh. In addition, the study also shows that high transaction costs, heavy default culture, operational self-insufficiency, improper appraisal of loan applications, and the absence of adequate accountability and transparency are the major barriers to the development of GF in Bangladesh. Therefore, major policy implications are further discussed.

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Section: Introductionmentioning

confidence: 99%

Green Finance Development in Bangladesh: The Role of Private Commercial Banks (PCBs)

et al. 2021

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“…Numerous studies have been recently conducted in the field of GF worldwide [1,3,12,16,[21][22][23][24][25][26][27][28][29][30][31][32], and these studies are mostly centered on GF for sustainable economic development [23][24][25]31,32]; the impact of GF on Fintech [26]; GF trends and opportunities [3,16,22,28]; the environmental effect of GF reform and innovations [17,29]; GF development and sustainability [1,27,33,34]; GF standards and green bonds [21,30]; and GF and sustainable development [12,[35][36][37]. Besides this, a few studies have tried to identify the relationship between GF and the green economy [7,38]; GF, carbon intensity, and non-fossil energy consumption, as well as climate change mitigation in the context of N11, BRICS countries, and China [39,40]; and sustainability performance [19,41]. Although several existing studies have emphasized the practices, prospects, challe...…”

Section: Introductionmentioning

confidence: 99%

Factors Affecting the Sustainability Performance of Financial Institutions in Bangladesh: The Role of Green Finance

et al. 2021

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Despite the increasing popularity of green finance and sustainable investment in the field of Sustainable Development Goals (SDGs), very few studies have investigated the effect of green finance dimensions on the sustainable performance of banks. Therefore, this study attempts to examine the dimensions of green finance and their effects on the sustainability performance of financial institutions in developing economies such as Bangladesh. The study also depicts the level of green financing adoption among the banks and non-bank financial institutions in the country between 2015 and 2020. Considering the nature of the dataset, the structural equation modeling technique was employed in this study to fulfil the research objectives. Amongst banks and non-bank financial institutions, the study highlighted private commercial banks as being the highest contributor to green financing, accounting for 78.12% of the total green financing in Bangladesh. In addition, the empirical findings revealed that the dimensions of green finance are related to the economic, social, and environmental aspects of the SDGs. Furthermore, empirical findings indicated that the dimensions of green finance—social, economic, and environmental—have a strong positive effect on the sustainability performance of banks. The study also discovered that approximately 95% of bankers identify green financing as an essential element in the short- and long-term development of banking strategies in Bangladesh. Consequently, this study adds to the body of knowledge on green finance development and the sustainability performance of banks and financial institutions in emerging economies such as Bangladesh. Therefore, major managerial policy implications are discussed.

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“…Many ideas, opinions, expectations and perspectives on sustainable finance have emerged in the academic literature and in policy circles, such as the need for the banking sector to play a significant role in promoting sustainable financing (Jeucken 2010;Weber 2014); the need to develop sustainable finance regulation and disclosure rules (Ahlström and Monciardini 2021;Chiu 2021); the need to avoid greenwashing (Zeidan 2020;Gregory 2021); the need to ensure that investors put sustainability over short-term profits (Ryszawska 2018); the need to promote sustainable finance through the issuance of green bonds (Park 2018); the role of sustainable finance in achieving the sustainable development goals (Ziolo, Bak, and Cheba 2021); allowing financial institutions to play a significant role in promoting sustainable finance (Ozili 2021); the mainstreaming of sustainable finance as a solution to climate change risk (Chebly, Rutz, and Schiano 2018); and mobilizing institutional efforts towards sustainable financing (Shalneva and Zinchenko 2018). While these ideas and perspectives on sustainable finance are interesting and noteworthy, they do not provide explanations for the behaviour and actions of economic agents towards sustainable finance.…”

Section: Introductionmentioning

confidence: 99%

Theories of Sustainable Finance

Ozili¹

2023

MGT

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This paper attempts to formulate new theories of sustainable finance, meeting a need to establish a set of propositions that can help us understand the behaviour and actions of economic agents towards sustainable finance. The paper used a literature survey to establish a theoretical relationship between sustainable finance and the actions of economic agents. The paper proposed six theories of sustainable finance, namely, the priority theory of sustainable finance, the resource theory of sustainable finance, the peer emulation theory of sustainable finance, the life span theory of sustainable finance, the positive signalling theory of sustainable finance, and the system disruption theory of sustainable finance. These theories offer believable explanations for the behaviour and actions of economic agents towards sustainable finance. Academics, policy makers, economists, researchers and students will find these theories very useful in their work in sustainable finance.

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Sustainable Finance as a Way of European Companies’ Transition to Green Economy

Cited by 5 publications

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Green Finance Development in Bangladesh: The Role of Private Commercial Banks (PCBs)

Green Finance Development in Bangladesh: The Role of Private Commercial Banks (PCBs)

Factors Affecting the Sustainability Performance of Financial Institutions in Bangladesh: The Role of Green Finance

Theories of Sustainable Finance

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