Sustainable Finance

Proceedings of The 5th International Academic Conference on Management and Economics

Year: 2022



Sustainable Finance

Ali Akgün



Although many years have passed since the global environmental and social context of sustainability, it is seen that socioeconomic and environmental constraints on sustainable development continue. In this case, the inadequacy and incompleteness of conventional finance, which is the current paradigm, in meeting the financing required for sustainable development has accelerated the discussions on sustainable finance, which is called the new paradigm in finance. Sustainable finance is a concept related to domestic or global financing of investments that support sustainable development goals and aim to reduce or adapt to climate change. While traditional finance focuses only on financial risk and return, sustainable finance, on the contrary, is seen as the key to the transition from the narrow sense partnership model we know to the broader stakeholder model, taking into account the combination of financial, social and environmental returns. Sustainable finance supports sustainable development by incorporating environmental, social and governance principles into decision-making processes, economic development and investment strategies. It is a known fact why and how financial mechanisms contribute to sustainable development. The role of financial markets, which mediate sustainable development, is increasing day by day, and at the same time, the robustness of the financial markets where the country’s savings are carried directly affects sustainable development. In this context, this study will clarify the issues of green finance, blue finance and climate finance under the title of sustainable finance.

keywords: Blue Finance; Climate Change; Climate Finance; Green Finance; Sustainable Development.