Page 32 - IMDR JOURNAL 22-23

IMDR’s Journal of Management Development and Research 2022-23

peak of the COVID-19 pandemic in 2020, more than eight out of ten sustainable investment funds outperformed
non-ESG-based share portfolios.

Customer attitudes are changing, which is yet another factor. According to a study conducted, two-
thirds of consumers of all ages prefer to buy from companies that share their values. This figure rises to
83% among millennials (people aged 18 to 34). According to a global survey, consumers are four to
six times more likely to buy from a brand that has a corporate purpose that they support.
However, if a company does something with which they disagree, three-quarters said they stopped
buying from that brand and encouraged others to do the same. Carbon-intensive industries such as
coal, oil, and gas are also finding it difficult and costly to raise capital as major lenders refuse to do
business with them.
According to McKinsey research, sustainable businesses are more likely to win contracts, save money
by using fewer resources, have less regulation, retain the best people, and avoid losing money on old
carbon-intensive processes. According to Bloomberg, the total value of ESG investments is on track to
exceed $53 trillion by 2025, accounting for more than a third of all global investments.

Conclusion
One of the most important discussions of our time is about the future of sustainable finance. With the
global economy on an unsustainable path, it is more important than ever to finance a more sustainable
future. There are many different perspectives on what the future of sustainable finance should look like,
but some common themes emerge.
sustainable finance should address more than just environmental concerns; it should also address social
and governance concerns. sustainable finance should be patient and long-term, with a focus on creating
value for future generations. sustainable finance should be inclusive, with a particular emphasis on
those most vulnerable to climate change.

These are just a few of the ideas being discussed as part of the sustainable finance debate. Whatever the
future of sustainable finance looks like, one thing is certain: it is a critical component of ensuring a
more sustainable future for all.

Sustainable finance is a burgeoning industry that is becoming increasingly important in the global
economy. Despite some challenges, sustainable finance provides several advantages, including the
ability to address pressing global issues, generate high returns for investors, and promote economic
development that is compatible with environmental protection. There are several ways to participate in
sustainable finance, including investing in green bonds, impact investments, and banking responsibly.
As the world transitions to a low-carbon economy, sustainable finance will become even more critical.

The trend is clear: financial institutions and investors will be compelled to review, monitor, and declare
the sustainability of their investments more frequently. While regulatory action in some markets is
rising, voluntary measures are being implemented in others. Although the measures are likely to
increase corporate costs, they also provide an opportunity for the development of new products and
services. In the face of climate danger, the financial industry has an opportunity to innovate, which can
produce wealth while also furthering climate-related and ESG objectives.

32