Exploring Sustainable Finance: A Review and Future Research Agenda

Abstract

The sustainable finance study is considered as an important study under the 2030 agenda for achieving sustainable development goals. It is assumed to include an investment decision-making process by directing capital towards sustainable investment and monitoring climate change under its core agendas. The study on sustainable finance is much diversified. There is no definition of sustainable finance which is applicable universally. The governments, financial institutions and several international organizations have considered framing a definition according to their approach and applicability. This article reviews the study conducted on the topic ‘sustainable finance’ to answer the question related to the meaning of sustainable finance and the areas covered under it. The study aims to explore the vast database of Scopus and Web of Science for the specified duration of 2002–22. The study tries to close the gap present in a diversification and interpretation of sustainable finance meaning, and it further draws the attention of the people concerned globally towards this less explored subject under the sustainability goal. There is abundant research undertaken in the various areas related to sustainability but very little in sustainable finance. The subject is majorly understood under the corporate governance spectrum despite having its relation with many other factors and also its individual impact on the industry growth, thus demanding a thorough review of the topic.