Sustainable Finance and Investment Strategies

Dear Colleagues,

Sustainable finance has transitioned from a niche to a mainstream sector, with assets under management projected to reach USD 4 trillion by 2025. Yet critical challenges remain: ESG ratings show correlation as low as 0.38 across providers, climate risk assessment lacks standardized frameworks, and the integration of artificial intelligence and fintech innovations raises fundamental questions about transparency, effectiveness, and unintended consequences.

This Special Issue invites rigorous research examining how emerging technologies—particularly AI, machine learning, and blockchain—are reshaping sustainable finance and investment practices. We seek papers that advance theoretical understanding, inform policy decisions, or guide practical implementation at this critical intersection of finance, accounting, technology, and sustainability.

Topics of Interest

We welcome submissions addressing (but not limited to) the following themes:

AI and Data Analytics for Sustainable Finance • Machine learning for ESG scoring, prediction, and portfolio optimization • Alternative data integration (satellite imagery, NLP, IoT) for sustainability assessment • Climate risk modeling and scenario analysis using advanced computational methods • Explainable AI and algorithmic transparency in sustainable investment decisions.

Fintech Innovations and Digital Platforms • Blockchain applications for green bonds, carbon markets, and supply chain transparency • Digital platforms and robo-advisors for sustainable investing • RegTech solutions for ESG compliance and disclosure requirements • Algorithmic trading and market microstructure with ESG considerations.

Disclosure, Verification, and Greenwashing • Natural language processing for analyzing sustainability reports and detecting misrepresentation • ESG data quality, harmonization, and standardization challenges • Real-time monitoring, continuous assurance, and the future of ESG auditing • Corporate disclosure strategies and their effectiveness in capital markets.

Market Implications and Financial Outcomes • Cost of capital, valuation, and performance implications of sustainable finance • Impact of regulatory mandates (EU Taxonomy, SFDR, CSRD, climate disclosure rules) • Investor preferences, behavioral biases, and decision-making in sustainable investing • Financial inclusion and access to green finance in emerging markets.

We particularly encourage research that: • Employs innovative methodologies or novel data sources • Bridges finance and accounting perspectives on sustainability • Examines critical or contrarian perspectives on sustainable finance effectiveness • Addresses practical implementation challenges facing institutions and regulators • Investigates unintended consequences or limitations of current approaches.

Submission Guidelines

We welcome diverse methodologies, appropriate to the research questions addressed, including archival studies, experiments, surveys, case studies, computational modeling, machine learning applications, and mixed-methods approaches. Both empirical and theoretical contributions will be considered. Descriptive research that advances understanding of emerging phenomena is valued alongside causal inference studies.

Manuscripts should: • Clearly articulate contributions to theory, practice, or policy • Demonstrate rigor appropriate to the chosen methodology • Have clear implications for finance and/or accounting scholarship • Follow the International Journal of Financial Studies’ formatting and submission guidelines.

Dr. Saurabh Ahluwalia
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. International Journal of Financial Studies is an international peer-reviewed open access quarterly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1800 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

• sustainable finance
• ESG (environmental, social, and governance)
• corporate social responsibility (CSR)
• artificial intelligence in finance
• fintech
• machine learning
• climate risk
• greenwashing detection
• investment strategies
• corporate finance
• asset pricing