Sustainable and socially responsible finance: Introduction

Salvatore Perdichizzi and Giuseppe Torluccio

International Review of Financial Analysis, 2025, vol. 107, issue C

Abstract: This Special Issue on Sustainable and Socially Responsible Finance examines how sustainability considerations enter asset pricing, corporate reporting, and prudential oversight. The contributions jointly show that outcomes hinge on the interaction of heterogeneous preferences, the design and credibility of information (ratings, labels, disclosures, stress tests), and real-world constraints faced by investors, firms, and banks. Methodologically, the Issue combines portfolio construction, experimental evidence on investor motives, large-scale analyses of financial reporting around climate shocks, and market reactions to supervisory climate exercises. The unifying message is pragmatic: when sustainability information is credibly produced and appropriately integrated into decision rules, markets can accommodate alignment goals without mechanically sacrificing efficiency; where information is noisy or discretion is high, incentives and governance determine whether sustainability claims translate into real change. We conclude by outlining implications for product design, assurance, and the architecture of climate-related supervision.

Keywords: Sustainable finance; ESG investing; Islamic finance; Climate disasters; Climate stress tests (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:107:y:2025:i:c:s1057521925007070

DOI: 10.1016/j.irfa.2025.104620

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