Year: 2025
Type: article
Abstract: The growing danger of climate change leads to a rising need for green financial solutions and environmental investment that aids Sustainable Development Goals. Researchers study the development of green finance with ESG investing through climate risk management strategies, particularly to understand their effect on financial risk reduction. Environmental sustainability drives sustainable economic transformation through green finance that distributes funds to sustainable projects with the support of financial incentives and policy guidance. Financial markets benefit from ESG investing by obtaining competitive returns and end up supporting green corporate behavior. Green finance operations need rigorous macroprudential policies together with accurate national governance structures to maintain stability in the financial system. The study examines the influence of physical risks and transition risks linked to climate change on financial stability. These financial threats produce concrete economic results, which such instruments as green bonds and ESG indices can help determine. The paper aims to supply government officials with theoretical guidance and specific recommendations about promoting healthy growth of green finance and ESG investments throughout climate risk management complexities.
DOI: 10.71222/00d71j98
Author: Ruyi Zhang
Institution: Sungkyunkwan University
Language: English
Subfield: Finance
Domain: Social Sciences
SDG: Climate action
Open Access status: bronze
OpenAlex ID: W4407865960