Sustainable finance research: Review and agenda

Abstract

Amidst increased climatic disasters, persisting social evils, and governance concerns, sustainable finance and its new and innovative financial instruments have gained prominence across stakeholders globally. Green, social sustainability, sustainability‐linked, and transition (collectively GSS+) debt have a market worth USD 3.9 trillion since 2007 (Climate Bonds Initiative, 2018). We provide a comprehensive review of the evolution and future research directions of the sustainable finance research field by analysing overall publication trends, subject categories, co‐authorship networks, keywords, countries and institutions, journal co‐citation, and cluster analysis. Findings include the emergent need for greater collaboration among authors globally. Future research directions include research questions for themes such as carbon emission trading, financial inclusion, reporting of proceeds related to sustainable finance to prevent greenwashing, the impact of climate change and climate finance on sustainable finance, mobilisation of sustainable finance through green bonds, and technological interactions between sustainable finance and blockchain and artificial intelligence. The study also provides implications for the stakeholders.

Twitter Sentiment Analysis On Sustainable Finance

“…This is because sustainability is not only an issue for socially responsible investors but has become a mainstream issue, influencing the way companies are viewed by policymakers, society, and other stakeholders (Edmans & Kacperczyk, 2022). Not surprisingly, the market for sustainable financial products, such as green bonds and sustainable investment funds, has grown rapidly, reflecting increased demand from investors (Singhania et al, 2023).…”

“…This bias can lead to underinvestment in sustainable projects and practices, as they may not provide immediate financial returns (Schoenmaker, 2017). Singhania et al (2023) added that there is a need for standardized metrics to measure the sustainability performance of financial and investment institutions. The absence of such metrics can make it difficult for investors to compare the sustainability performance of different investments and financial institutions.…”

CSR research in corporate finance: a comment on Gillan et al., “firms and social responsibility: a review of ESG and CSR research in corporate finance”

“…Regarding this topic, among the critical aspects that they consider having been revealed by their findings, Carè and Weber (2023b) include the lack of involvement by top-tier finance journals in the dissemination of theory and concepts. A recent literature review on sustainable finance goes as far as considering that “more involvement and special issues from important finance journals promoting sustainability are required” (Singhania et al , 2023, p. 29).…”