Abstract

In an era defined by escalating environmental degradation, social inequalities, and corporate governance failures, the imperative for sustainable finance and environmental, social, and governance (ESG) investing has attained unprecedented significance. The global community's mounting concerns regarding climate change and social responsibility underscore the urgency for financial institutions, particularly banks, to re-evaluate their traditional approaches to decision-making. This study delves into the pivotal question of how banks can navigate the evolving landscape of sustainable finance, integrating ESG criteria into their core decision-making processes, pioneering the development of sustainable financial products, and effectively assessing environmental risks within their lending portfolios. Against a backdrop of heightened awareness surrounding the interconnectedness between financial performance and broader societal and environmental impacts, this investigation seeks to illuminate pathways for banks to align their operations with sustainability imperatives while simultaneously enhancing their resilience to emerging risks and opportunities.

Description