Short description:

This book addresses current developments in the field of sustainable finance, conveying the relevant theories in connection with their practical application. It considers the sustainable finance ecosystem from a broad and integrated viewpoint and presents a comprehensive and cohesive roadmap.

Long description:

Sustainable finance involves making investment decisions that consider not only financial returns, but also environmental, social, and governance factors. Additionally, the role and contribution of sustainable finance mechanisms in the transition to a resilient, low-carbon, and sustainable economy are critical for sustainable development. As a rapidly developing research area where theory and practice intersect, sustainable finance deserves detailed examination from different perspectives. This book addresses current developments in the field, conveying the relevant theories in connection with their practical application.

 It considers the sustainable finance ecosystem from a broad and integrated viewpoint and presents a comprehensive and cohesive roadmap. It analyzes current issues and evolving theories including, but not limited to, the EU Green Deal, Green taxonomy, impact investing, Environmental Social Governance investing and the carbon and energy markets, offering a cross-disciplinary perspective of the challenges and impact of these concepts. The book tackles key concerns such as the issues with implementing and impacting the efficiency of sustainable finance, greenwashing and related terminology, sustainability rating and the risk context and, Environment Social Governance risk as well as the global regulatory challenge. Further, it highlights the importance of sustainable finance instruments for channeling capital to address climate change and support the Sustainable Development Goals. Analysing and mapping the Sustainable Development Goals against each topic under discussion provides a structure that supports the book's originality.

 The book is written in an accessible style and will appeal to a wide audience from academics, researchers and advanced students to regulators, standard setters, ESG intermediaries, auditors and policymakers.

Güler Aras is a Professor of Finance, Accounting and Sustainability at Yildiz Technical University, Istanbul, Turkey.

Table of Contents:

Introduction: What Is Sstainable Finance and Why? Part I: Sustainable Financial Markets and Instruments 1. Sustainable Finance Mechanisms, Instruments, and Financing SDGs 2. Approaching Investments of Private Equity Funds Based on ESG Criteria 3. Impact Investing 4. Carbon Offsetting and Climate Innovation 5. Towards an Ethical Economy of Sustainable Finance: From ESG Reporting and Investments to Due Diligence Regulation of the European Union Part II: Sustainable Finance Alignment Approaches 6. Regulations as a Driver of Sustainable Finance: Sustainable Taxonomies 7. Institutional Investors and Sustainability Reporting 8. Bank Social Responsibility (BSR): When the Internal Audit Function Innovates for Sustainable and Responsible Finance and Value Creation 9. Conclusion: Future Perspective