Topic Editors

Prof. Dr. Otilia Manta
Department of Research, Romanian American University, 012101 Bucharest, Romania
Dr. Maria Palazzo
School of Management, Universitas Mercatorum, Rome, Italy

Sustainable and Green Finance

Abstract submission deadline
31 July 2026
Manuscript submission deadline
31 October 2026
Viewed by
3248

Topic Information

Dear Colleagues,

We are pleased to invite you to submit your research for the Topic titled “Sustainable and Green Finance”. As the world faces increasing environmental challenges, the importance of aligning financial systems with sustainability goals has never been greater. This Topic aims to explore innovative approaches, strategies, and policies that can contribute to building a greener and more sustainable financial system.

The financial sector plays a crucial role in supporting the transition toward a more sustainable economy. By allocating capital to environmentally responsible projects, promoting green investments, and developing sustainable financial products, it can help address pressing issues such as climate change, resource depletion, and social inequality. We seek high-quality research that will deepen our understanding of how sustainable and green finance can contribute to the global effort toward achieving long-term environmental, social, and governance (ESG) goals.

This Topic aims to address the evolving landscape of sustainable and green finance. We welcome both theoretical and empirical contributions that explore the various aspects of sustainable financial practices, policies, and instruments. Our goal is to foster discussions on how financial systems can support the transition to low-carbon economies and integrate sustainability principles into investment decisions, risk management, and corporate governance.

The scope covers a wide range of topics related to sustainable finance, including the development of green financial instruments, the role of regulatory frameworks, the impact of ESG factors on financial performance, and the design of sustainable investment strategies. We are particularly interested in studies that offer actionable insights into how financial markets can facilitate environmental sustainability and social responsibility, ensuring a fair transition to a more resilient economy.

Key areas of interest include, but are not limited to, the following:

  • green bonds, green loans, and other sustainable financial products;
  • ESG integration in financial decision-making and asset pricing;
  • regulatory frameworks and policies promoting sustainable finance;
  • climate finance and funding mechanisms for low-carbon transitions;
  • the role of central banks and financial institutions in fostering sustainability;
  • risk assessment, reporting, and disclosure of ESG risks;
  • impact investing and socially responsible investment strategies;
  • technological innovations (e.g., blockchain) supporting sustainable finance;
  • corporate sustainability, governance, and stakeholder engagement;
  • financial inclusion and sustainable development in emerging markets.

We look forward to receiving your valuable contributions to this important topic and to advancing the discussion on how finance can contribute to a more sustainable and equitable future.

Prof. Dr. Otilia Manta
Dr. Maria Palazzo
Topic Editors

Keywords

  • sustainable finance
  • green finance
  • ESG (environmental, social, governance)
  • green bonds
  • climate finance
  • impact investing
  • sustainable development
  • financial regulation
  • low-carbon economy
  • corporate governance

Participating Journals

Journal Name Impact Factor CiteScore Launched Year First Decision (median) APC
Economies
economies
2.1 4.7 2013 21.9 Days CHF 1800 Submit
International Journal of Financial Studies
ijfs
2.1 4.6 2013 24.8 Days CHF 1800 Submit
Sustainability
sustainability
3.3 7.7 2009 19.7 Days CHF 2400 Submit
Businesses
businesses
- - 2021 24.7 Days CHF 1000 Submit
Journal of Risk and Financial Management
jrfm
- 5.0 2008 21 Days CHF 1400 Submit

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Published Papers (5 papers)

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19 pages, 303 KiB  
Article
Can Green Funds Improve Corporate Carbon Performance? Firm-Level Evidence from China
by Pengcheng Wang and Shanyue Jin
Sustainability 2025, 17(12), 5409; https://doi.org/10.3390/su17125409 - 11 Jun 2025
Abstract
Intensifying challenges posed by global warming have elevated the urgency of improving corporate carbon performance and curbing carbon emissions. Green financial instruments serve a vital function in advancing corporate transitions toward environmentally responsible and low-carbon operational models. This research explores the influence of [...] Read more.
Intensifying challenges posed by global warming have elevated the urgency of improving corporate carbon performance and curbing carbon emissions. Green financial instruments serve a vital function in advancing corporate transitions toward environmentally responsible and low-carbon operational models. This research explores the influence of green funds on carbon performance at the firm level, aiming to clarify the micro-level mechanisms through which green financial instruments promote low-carbon development. The study utilizes data from Chinese listed companies spanning 2012 to 2021 and employs a TWFE regression model to empirically assess the effects. The findings indicate that green funds contribute to improved carbon performance. Furthermore, this effect is positively moderated by executive green awareness and financial background, indicating that managerial cognition and experience play a vital role in amplifying the benefits of green finance. Notably, green funds exert a stronger positive effect in highly polluting industries, suggesting that green financial resources should be directed not only to low-emission sectors but also to high-emission ones to improve their carbon efficiency. These findings extend existing literature by offering firm-level evidence on the effectiveness of green financial instruments and underscore the importance of targeted policy support to encourage green upgrading across all industry types. Full article
(This article belongs to the Topic Sustainable and Green Finance)
28 pages, 440 KiB  
Article
Impact of Sustainable Finance on Business Financial Performance: Insight from London Stock Exchange Firms
by Hani A. Omran Elarabi and Wagdi Khalifa
Sustainability 2025, 17(11), 4898; https://doi.org/10.3390/su17114898 - 27 May 2025
Viewed by 363
Abstract
The United Kingdom has enacted rules to support green investment, enhancing the financial sustainability of enterprises adopting sustainable practices. These enactments offer financial incentives to enterprises that invest in sustainable initiatives. Companies that do not adopt sustainable practices face increasing operating expenses, a [...] Read more.
The United Kingdom has enacted rules to support green investment, enhancing the financial sustainability of enterprises adopting sustainable practices. These enactments offer financial incentives to enterprises that invest in sustainable initiatives. Companies that do not adopt sustainable practices face increasing operating expenses, a declining market share, and diminished investor trust. This study leveraged the stakeholder theory to examine the impact of sustainable finance on business financial performance. The study focused on 143 non-financial companies listed on the London Stock Exchange, using 17 years of data between 2008 and 2024 obtained from Thomson Reuters Eikon DataStream. The data were analyzed using the two-step Generalized Method of Estimation (GMM) due to endogeneity identified in the data. The study discovered that green financing initiatives, policies for emission reduction, and sustainable product initiatives had a positive and significant impact on business financial performance. The study also revealed that environmental investment initiatives negatively and significantly impacted business financial performance. Investing in green finance and sustainable products enhances financial performance by fostering investor trust and bolstering corporate reputation, fortifying firms. Adhering to international sustainability standards promotes long-term value creation and market alignment. To mitigate financial strain, environmental investments necessitate stringent cost management. An equitable strategy ensures that, by mitigating risks, sustainability measures enhance profitability. By meticulously integrating these projects, companies can achieve environmental and financial benefits while sustaining a competitive advantage in a rapidly evolving corporate landscape. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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35 pages, 3634 KiB  
Article
Ripple Effect or Spatial Interaction? A Spatial Analysis of Green Finance and Carbon Emissions in the Yellow River Basin
by Jiayu Ru, Lu Gan and Gulinaer Yusufu
Sustainability 2025, 17(10), 4713; https://doi.org/10.3390/su17104713 - 20 May 2025
Viewed by 273
Abstract
Grounded in the theory of new economic geography, this research develops a comprehensive theoretical framework to examine the spatial interaction mechanisms between the Green Finance Index and carbon emissions. Employing a range of econometric techniques—including three-dimensional kernel density estimation, spatial quantile regression, bivariate [...] Read more.
Grounded in the theory of new economic geography, this research develops a comprehensive theoretical framework to examine the spatial interaction mechanisms between the Green Finance Index and carbon emissions. Employing a range of econometric techniques—including three-dimensional kernel density estimation, spatial quantile regression, bivariate spatial autocorrelation analysis, and the spatial linkage equation model—the dynamic evolution, spatial pattern shifts, and mutual influences of green finance and carbon emissions in the middle and lower reaches of the Yellow River from 2003 to 2022 are systematically assessed. The findings indicate that (1) both carbon emissions and the Green Finance Index have experienced a trajectory of continuous growth, phased decline, and structural optimization, accompanied by a gradual shift in the regional center of gravity from coastal economic zones towards resource-intensive and traditional industry-concentrated areas; (2) significant spatial clustering is evident for both green finance and carbon emissions, demonstrating a strong spatial correlation and regional synergy effects; (3) a persistent negative spatial correlation exists between green finance and carbon emissions; and (4) green finance exerts a stable negative spatial spillover effect on carbon emissions, suggesting that the influence of green finance extends beyond localities to adjacent regions through spatial externalities, manifesting pronounced spatial transmission and linkage characteristics. By unveiling the bidirectional spatial association between green finance and carbon emissions, this study highlights the pivotal role of green finance in driving regional low-carbon transitions. The results provide theoretical insights for optimizing green finance policies within the Yellow River Basin and offer valuable international references for similar regional low-carbon development initiatives. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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30 pages, 1617 KiB  
Article
Does Green Finance Facilitate the Upgrading of Green Export Quality? Evidence from China’s Green Loan Interest Subsidies Policy
by Jinming Shi, Jia Li, Shuai Jiang, Yingqian Liu and Xiaoyu Yin
Sustainability 2025, 17(10), 4375; https://doi.org/10.3390/su17104375 - 12 May 2025
Viewed by 379
Abstract
In the global pursuit of sustainable development and climate change mitigation, reconciling export growth with environmental protection has emerged as a universal challenge. As the world’s largest developing economy, China has traditionally relied on a resource-intensive development model to fuel rapid foreign trade [...] Read more.
In the global pursuit of sustainable development and climate change mitigation, reconciling export growth with environmental protection has emerged as a universal challenge. As the world’s largest developing economy, China has traditionally relied on a resource-intensive development model to fuel rapid foreign trade growth. However, this extensive growth pattern has not only led to environmental pollution domestically but has also encountered hurdles from international green trade barriers. Finance, as a key driver of stable economic growth, plays a pivotal role in achieving high-quality trade development. Against this backdrop, the Chinese government has introduced the green credit interest subsidies policy. This policy aims to coordinate government financial resources and guide capital toward green production, alleviating financing constraints and fostering the upgrading of export product quality. Utilizing data from the World Bank, China Customs statistics, and provincial panels from 2011 to 2020, this study employs a multi-period difference-in-differences (DID) model to examine the causal impact of the green credit subsidies policy on efforts to upgrade the export quality of green products across China’s regions. The benchmark regression results indicate that the green credit interest subsidies policy has significantly improved the export quality of green products across China’s manufacturing industries. Heterogeneity analysis shows that this policy has had a more pronounced positive impact on green product quality in industries with quality-based competition strategies, in regions with well-coordinated local finance and financial policies, as well as in countries that have concluded environmental clauses with China. Mechanism analysis reveals that, on the export side, the policy enhances green product quality by easing financing constraints, increasing green credit, boosting productivity, and upgrading industrial structures. On the import side, the policy promotes green product quality by expanding the scale, variety, and quality of green intermediate goods. This research offers valuable insights for developing countries aiming to establish export-oriented green transformation and upgrading strategies. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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29 pages, 316 KiB  
Article
Macro Stewardship: A Transformative Approach in Sustainable Finance for Achieving Sustainability
by Diana George, Ian Christie and Walter Wehrmeyer
Sustainability 2025, 17(8), 3287; https://doi.org/10.3390/su17083287 - 8 Apr 2025
Viewed by 608
Abstract
This conceptual paper introduces Macro Stewardship (Ma-S) as a transformative approach in sustainable finance to challenge financial market failures that contribute to systemic collective action issues such as climate change, biodiversity loss, and inequality. It argues that traditional Environmental, Social, and Governance (ESG) [...] Read more.
This conceptual paper introduces Macro Stewardship (Ma-S) as a transformative approach in sustainable finance to challenge financial market failures that contribute to systemic collective action issues such as climate change, biodiversity loss, and inequality. It argues that traditional Environmental, Social, and Governance (ESG) strategies focus on individual corporate actions and often fail to drive systemic change. Ma-S, on the other hand, leverages the power of financial institutions to engage governments, policymakers, and stakeholders in addressing market failures tied to sustainability. Unlike Micro Stewardship (Mi-S) or ESG approach, which centers on corporate-level engagement, Ma-S promotes collaborative interventions to align the interests of businesses, governments, and society. This approach aims to influence regulatory changes, shape public policy, and support the United Nations Sustainable Development Goals (SDGs). The paper is guided by the research question: How can Macro Stewardship by financial institutions serve as a transformative approach in sustainable finance to achieve systemic change? It proposes a definition for Ma-S, outlines its practical applications, identifies implementation challenges, and presents a research agenda to evaluate its effectiveness and impact. In doing so, the paper lays a foundation for future empirical studies and calls for a shift in how financial systems contribute to global sustainability. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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