Green Finance, Corporate Performance, and the Role of Financial Institutions

Fateh Saci and Boualem Aliouat

Chapter 13 in Green Finance and Sustainable Development Goals, 2024, pp 337-368 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This chapter mainly deals with the systemic relevance and paradoxes of green finance, both in terms of organizational performance and the contribution of conventional or unconventional financial institutions in achieving the objectives of a sustainable environmental economy. The objective of this chapter is to highlight the impact of climate risks on the financial performance of the company and to show to what extent the durability and competitiveness of companies are based on an adjustment toward a “sustainable” strategy. Our chapter focuses on the effect of CO2 emissions on corporate performance. Using CDP data from a sample of the world’s 500 largest companies, the results of our regression model show a negative correlation between CO2 emissions and company performance scores. The results of our qualitative interviews with 14 interviewees attest to the progressive disengagement of banks toward polluting companies.

Keywords: Green Finance; Financial Development; ESG Performance; Climate Change; Climate-Vulnerable Asian Countries; Environmental Disclosure in Financial Institutions; Environmental; Social; and Governance Issues in Corporate Valuation; Financing Renewable Energy; Gross Ecosystem Product; Green Banking Disclosures; Climate-Related Risks; Green Banking Disclosures; Development and Impact Analysis (search for similar items in EconPapers)
JEL-codes: Q01 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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