A Review of Sustainable Finance and Financial Performance Literature: Mini-Review Approach
https://doi.org/10.56225/ijfeb.v1i1.1
Keywords:
sustainability finance, financial institutions, financial performance, mini-review approachAbstract
Sustainable development is a concept of how finance interacts with the economy, society, and the environment. As a form of transformation, a sustainable financial system exists to direct business practices by allocating investment funding to productive activities. Financial institutions, especially banks as funders, must ensure that all funds used for company activities create long-term value for the environment and society. Implementing sustainable finance is expected to help deal with uncertain environmental issues, such as carbon emissions on climate change. This paper seeks to provide an understanding of the literature on sustainable finance financing and corporate financial performance in the global banking sector. This research was designed using a qualitative approach through a literature study. Reviews on sustainable finance were conducted by reading and analyzing 30 peer-reviewed journal articles and summarized in two tables, e.g., article journal and publisher distribution and article category on the basis of the subject. The result shows that sustainable finance has a significant positive relationship with banking financial performance. In conclusion, this study identified that companies began to adopt sustainability practices, and it has a positive impact on financial performance and survival, and many organizations are beginning to incorporate the elements of the SDGs into their business operations.
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