Sustainable Finance: Trends, Opportunities and Risks

Torre, Mario La; Chiappini, Helen

doi:10.1007/978-3-030-40248-8_11

Cited by 4 publications

(5 citation statements)

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“…The subject of sustainable finance is also increasingly approached in academic works (Gutterman, 2021;La Torre & Chiappini, 2020;Migliorelli, 2021;Sachs et al 2016;Migliorelli & Dessertine, 2019;Ziolo & Sergi, 2019;Park, 2019;Wendt, 2018;Ramiah & Gregoriou, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

“…It is recognized as a key means to direct capital toward funding various projects which target the attainment of environmental, social, and governance imperatives that organizations face nowadays. The surge in products related to sustainable finance has been motivated by the investors' quest of balancing financial returns and wider social and environmental benefits (Wendt, 2020;La Torre & Chiappini, 2020), as well as by the policy and regulation initiatives such as the 2030 Agenda for Sustainable Development or The Paris agreement (La Torre & Chiappini, 2020;Gutterman, 2021).…”

Section: Introductionmentioning

confidence: 99%

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Sustainability Bonds. An International Event Study

Mocanu

Constantin

Cernat-Gruici

2021

Journal of Business Economics and Management

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Sustainability bonds enable capital-raising and investment for those projects that have both a positive impact on the environment and a positive social outcome. This study examines the stock market reaction to the announcement of sustainability bonds issuance. The present research is designed as follows: first, an event study that examines the market reaction and second, a highlight of drivers influencing this market reaction via a linear regression with cluster-robust standard errors. Overall, small and negative sample-wide reactions to sustainability bond issue announcements were found. Additionally, the study finds significant negative abnormal returns before the publication in June 2018 of The Sustainability Bond Guidelines by the International Capital Market Association. Specifically, the size of the bond issue, whether the bond is callable or not, the announcement of the issue as a single event in a day, the company’s Return on Assets, the firm’s social disclosure score, and the issuance of the bond prior or after June 2018 are statistically significant factors that influence the stock returns of issuers.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Sustainability Bonds. An International Event Study

Mocanu

Constantin

Cernat-Gruici

2021

Journal of Business Economics and Management

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“…lending and finance). The increasing importance of ESG issues in the EU and global landscape has led to a shift in stakeholders’ preferences, with a growing emphasis on sustainable practices and responsible corporate behaviour (Tan et al , 2017; La Torre and Chiappini, 2020; Houston and Shan, 2022). Interestingly, our study did not find compelling evidence of mimetic pressures, suggesting that the pressure to adopt sustainability practices by imitating successful peers was not a significant driver for MCS changes in the banking industry.…”

Section: Discussionmentioning

confidence: 99%

“…The banking institutional environment has changed radically over the past few years, bringing banks under immense pressure to improve their commitment to sustainability (Raut et al , 2017; Aras et al , 2018; Avrampou et al , 2019; Galletta et al , 2021; Houston and Shan, 2022). This attention to sustainability is mainly driven by the growing demand of different banks’ stakeholders, especially customers and investors, who are increasingly concerned about ESG issues and therefore expect banks to be proactively engaged in sustainable activities (La Torre and Chiappini, 2020; Houston and Shan, 2022). Regulatory and policy pressures are also growing, with policymakers and authorities involved in fostering sustainable economic growth putting heightened pressure on banks to address the sustainability imperative and to do so promptly (Wu and Shen, 2013; Zimmermann, 2019; Cosma et al , 2020; Umar et al , 2021).…”

Section: Introductionmentioning

confidence: 99%

Integrating sustainability in management control systems: an exploratory study on Italian banks

Ferretti,

Gonnella,

Martino

2024

MEDAR

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Purpose Drawing insights from institutional theory, this paper aims to examine whether and to what extent banks have reconfigured their management control systems (MCSs) in response to growing institutional pressures towards sustainability, understood as environmental, social and governance (ESG) issues. Design/methodology/approach The authors conducted an exploratory study at the three largest Italian banking groups to shed light on changes made in MCSs to account for ESG issues. The analysis is based on 12 semi-structured interviews with managers from the sustainability and controls areas, as well as from other relevant operational areas particularly concerned with the integration process of ESG issues. Additionally, secondary data sources were used. The Malmi and Brown (2008) MCS framework, consisting of a package of five types of formal and informal control mechanisms, was used to structure and analyse the empirical data. Findings The examined banks widely implemented numerous changes to their MCSs as a response to the heightened sustainability pressures from regulatory bodies and stakeholders. In particular, with the exception of action planning, the results show an extensive integration of ESG issues into the five control mechanisms of Malmi and Brown’s framework, namely, long-term planning, cybernetic, reward/compensation, administrative and cultural controls. Practical implications By identifying the approaches banks followed in reconfiguring traditional MCSs, this research sheds light on how adequate MCSs can promote banks’ “sustainable behaviours”. The results can, thus, contribute to defining best practices on how MCSs can be redesigned to support the integration of ESG issues into the banks’ way of doing business. Originality/value Overall, the findings support the theoretical assertion that institutional pressures influence the design of banks’ MCSs, and that both formal and informal controls are necessary to ensure a real engagement towards sustainability. More specifically, this study reveals that MCSs, by encompassing both formal and informal controls, are central to enabling banks to appropriately understand, plan and control the transition towards business models fully oriented to the integration of ESG issues. Thereby, this allows banks to effectively respond to the increased stakeholder demands around ESG concerns.

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“…Концепція сталого фінансування не залишилася поза увагою науковців і практиків, які вивчали її з різних аспектів: трендів, ризиків та можливостей сталого фінансування (La Torre, M., Chiappini, H., 2020); як концепція сталого інвестування вписується у рамки Цілей сталого розвитку ООН (Franco, I.B., Sethpornpong, N., 2022); законодавчого регулювання сталого фінансування (Chiu, I.HY., Lin, L. & Rouch, D., 2022); ступеня використання «зеленого» та сталого фінансування на різних ринках (Huynh, T.L.D., Walther, T. & Utz, S., 2022;El Amri, A., Boutti, R., Rodhain, F., 2020); еволюції та зміни ролі фінансів (Ryszawska, B., 2018); досвіду впровадження сталого фінансування в Україні (Prutska, O., 2021); інформаційного забезпечення сталого фінансування (Shkvarchuk, L., Slaviuk, R., 2022). Проте і до сьогодні відбувається розвиток концепції у напрямах уточнення ролі сталого фінансування у досягненні Цілей сталого розвитку, більш точного виокремлення її складових та виділення особливостей, оцінки стану ринку та перспектив подальшого розвитку в світі та в Україні.…”

Section: вступ (Introduction)unclassified

Стале Фінансування: Особливості Та Перспективи

Vasylchuk,

Izmaylova,

Shablii

2023

ete

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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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Sustainable Finance: Trends, Opportunities and Risks

Cited by 4 publications

References 8 publications

Sustainability Bonds. An International Event Study

Sustainability Bonds. An International Event Study

Integrating sustainability in management control systems: an exploratory study on Italian banks

Стале Фінансування: Особливості Та Перспективи

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