Sustainable finance

O'Sullivan, Niamh

Abstract

Sustainable finance relates to the integration of environmental and social issues into banking, investment, and insurance activities, and the recognition that in doing so, the financial sector has tremendous leverage to shift international economies towards sustainable development. That is, if the financial sector imposes sustainability requirements on economic entities to secure or maintain financial support, this could cause more positive environmental and social outcomes, and thus a more sustainable economy. The underlying ethos is that the finance sector, at the head of the economic supply chain, has a huge influence on economic activity and can have an equal, mutually reinforcing influence on environmental protection and social stewardship, through the application of sustainability obligations on the entities they lend to, invest in, and insure. Through the concept and practice of sustainable finance, we now see (arguably) a greater merger of the shareholder and stakeholder views of the firm, making the demarcation between both more porous and nuanced than ever before. This opens new, rich research and teaching opportunities for corporate social responsibility scholars as well as broader business, management and finance colleagues.

Citation

O'Sullivan, N. (2024). Sustainable finance. In L. Matthews, L. Bianchi, & C. Ingram (Eds.), Concise Encyclopedia of Corporate Social Responsibility (196-201). Edward Elgar Publishing. https://doi.org/10.4337/9781800880344.ch37

• Online Publication Date: Jan 28, 2024
• Publication Date: Jan 28, 2024
• Deposit Date: Oct 16, 2024
• Publisher: Edward Elgar Publishing
• Peer Reviewed: Peer Reviewed
• Pages: 196-201
• Book Title: Concise Encyclopedia of Corporate Social Responsibility
• Chapter Number: 37
• ISBN: 9781800880337
• DOI: https://doi.org/10.4337/9781800880344.ch37
• Keywords: Corporate Social Responsibility; Sustainable Finance; Sustainability; Environmental; Social and Governance Issues; Banking; Investment; Insurance; Finance Sector
• Public URL: https://nottingham-repository.worktribe.com/output/40582763
• Publisher URL: https://www.elgaronline.com/display/book/9781800880344/ch37.xml