Authors: Vinod R. Kantharia
Abstract: In recent years, the growing awareness of environmental, social, and governance (ESG) factors has led to an increasing emphasis on sustainable finance and investment as critical components of long-term economic growth. The primary aim of this journal paper is to examine sustainable finance and investment and strategies that can be utilized to promote these practices in organizations. The specific objectives included exploring the benefits of sustainable finance and the potential challenges that can be experienced in their implementation. The findings of this study are significant in expanding the literature on sustainable financing and investment. A mixed method was employed, and surveys and interviews were considered for data collection. A crucial finding was that sustainable financing and investment benefits included adopting innovative practices and increased organizational profitability. In particular, sustainable funding was noted to improve the company’s image as caring due to the management of social and environmental issues, thereby attracting more customers. The study revealed that sustainable finance and investment significantly enhance organizational profitability, drive research and development, and promote environmental responsibility. However, challenges such as greenwashing, lack of investor commitment, and slow returns hinder its widespread adoption, highlighting the need for stronger regulations, awareness creation, and policy enforcement.A crucial challenge linked to sustainable financing entails greenwashing, in which organizations provide false information on their sustainability efforts, thereby misleading customers about the quality of products. In this regard, one recommendation to promote sustainable financing and investment involves implementing policies that lower the costs of implementing sustainable investments. Moreover, increasing awareness among investors on sustainable financing can ensure that they consider the sustainable practices of organizations before funding them.
DOI: http://doi.org/10.5281/zenodo.20445015
