Green Finance Challenges and Opportunities

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[...] In this study, CSR measures the dimension determined by Carroll (1991) with modifications to adapt it to the Vietnamese context. II. A favorable context for the integration of green finance Favorable media context The initiative led by investors Climate Action 100+ found that while many companies (partially included in sustainable investment funds) take ambitious climate commitments (e.g. net zero emissions by 2050), only a few companies have clear short-term (up to 2025) or medium-term (2026-2035) goals on how to achieve these climate targets (ClimateAction100+ 2021)16. [...]

[...] However, a number of legal experts, politicians, and primarily climate scientists have stated that the COP26 constituted a respective step and a progress in the field of the environment. European Regulation Most studies on green finance in Europe are policy reports. There are very few academic studies. A report by the European Commission (2017)28 shows that the common green financing strategies adopted in Europe are 'green bonds' issued in accordance with the principles of green bonds, and 'green equity investment'. In Austria, Breitenfellner et al (2020)29 analyze the green finance market. [...]

[...] It is considerable that the financing needs vary significantly across emerging economies, and this is why authors and financial experts emphasize the importance of private investments, financial institution funding, and foreign financial aid26. Subsequently, the Paris Agreement of 2015 established a reference point for climate change mitigation. Thanks to the Paris Agreement, an innovative global framework for sustainable development was concluded, strengthening and further tightening the obligations of countries to achieve the SDGs. This framework and the 2030 Agenda were reinforced by the two-week United Nations Climate Summit in Glasgow. [...]

[...] Sustainable finance examines how finance (investment and lending) interacts with economic, social, and environmental issues. The primary task of the financial system being to allocate funds to their most productive use, finance can play a leading role in allocating investments to sustainable companies and projects, and thus contribute to accelerating sustainable development4. The European Sustainable Investment Forum (Eurosif) defines sustainable and responsible investment (SRI) as a 'long-term investment approach that integrates ESG factors into the research, analysis and selection process within a portfolio of investments'5. [...]

[...] The demand for sustainable financial products is increasing, and asset managers are integrating ESG factors into their investment processes. In recent times, active ownership aimed at addressing sustainability issues has become an increasingly important tool for responsible investment strategies applied by investors. The development of responsible investment has developed in collaboration with other popular subjects, namely corporate social responsibility referring to the actions taken by a company to improve its performance in sustainable development. It is natural that the two have developed together in companies subject to responsible investments. [...]