In:
Ukrainian Journal of Applied Economics and Technology, Drukarnia Madryd, Vol. 7, No. 4 ( 2022-12-26), p. 92-97
Abstract:
The traditional view of the financial market role in economic science appeals to the theory of the primacy of financial development, according to which deep, stable and effective financial markets functioning has a positive effect on sustainable economic growth, while contributing to a fair redistribution of the aggregate public welfare. However, in recent years it has become more and more obvious that the theory of primacy is not able to reflect the variety of new global challenges related to environmental, socio-economic, organizational problems, and for developing countries focused on the export of hydrocarbon and energy-intensive products, the new challenges can be the divestiture of financial assets with high climate risks and the realization of credit, market and reputational risks in the event of decarbonization of the world economy, affecting not only the state of financial markets, but also many other important aspects of socio-economic development. It is obvious that the transition to sustainable development, inclusive growth and a carbon-neutral economy requires large-scale investment, both from private investors and the public sector (for example, multilateral development banks). Changing public attitudes as a response to new challenges is also manifested in the practice of conducting business and state regulation. Against the background of these trends, the importance of responsible investors is increasing, who are increasingly interested in the non-financial effect of their investments and in choosing companies that adhere to the principles of environmental, social and corporate responsibility. As a result, the demand for financial instruments of responsible investment is growing. The implementation of the principles of responsible investment on the scale of the global economy contributes to mitigating the consequences of global challenges, reducing climate risks, achieving the goals of sustainable expanding investment asset classes, providing new risk management tools and increasing level of financial inclusion, quality of corporate governance, environmental and social responsibility of business.
Keywords: green bonds, investment, ESG, greening, ecological effect, investment project.
Type of Medium:
Online Resource
ISSN:
2415-8453
DOI:
10.36887/2415-8453-2022-4
DOI:
10.36887/2415-8453-2022-4-12
Language:
Ukrainian
Publisher:
Drukarnia Madryd
Publication Date:
2022
Permalink
