Journal Press India®

GBS Impact: Journal of Multi Disciplinary Research
Vol 12 , Issue 1 , January - June 2026 | Pages: 266-293 | Research Paper

A Study on Sustainable Finance and Green Investments: Impact on ESG Performance, Environmental Sustainability and Economic Growth

Author Details ( * ) denotes Corresponding author

1. * Karthik N L, Assistant Professor, Commerce and Management, Jain College, Bangalore, Karnataka, India (nazare.karthik@gmail.com)
2. Archana Ambekar, Academic Dean, PG Department, PG Commerce , Jain College (Autonomous) , Bangalore, Karnataka, India (dr.archana.ab@gmail.com)

Sustainable finance and green investments have become essential in addressing climate change, environmental degradation, and sustainable economic development. Sustainable finance integrates Environmental, Social, and Governance (ESG) factors into financial decisions, while green investments support renewable energy, clean technology, sustainable infrastructure, and carbon reduction initiatives. This study examines the growth, significance, challenges, and impact of sustainable finance and green investments on economic and environmental sustainability. Using a descriptive and analytical approach, the study relies on secondary data from research journals, sustainability reports, government publications, and international financial institutions. Findings reveal substantial growth in global sustainable investment assets and increasing investor preference for ESG-focused strategies. Companies with strong ESG performance achieve better financial returns, enhanced investor confidence, and lower risk exposure. Green investments contribute significantly to carbon emission reduction and environmental sustainability. However, challenges such as lack of ESG standardization, greenwashing, limited awareness, and regulatory issues persist. The study concludes that sustainable finance is vital for long-term economic growth and sustainable development.

Keywords

Sustainable Finance, Green Investments, ESG (Environmental, Social, and Governance), Renewable Energy, Green Bonds, Sustainable Development, Environmental Sustainability, Climate Change, Carbon Emission Reduction, Responsible Investment, Sustainable Economic Growth, ESG Reporting, Green Finance, Corporate Sustainability, Low-Carbon Economy

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