The role of green finance in attaining environmental sustainability within a country's ESG performance
The ongoing issues that follow climate change require the implementation of relevant strategies and instruments to accelerate countries’ efforts toward environmental sustainability. Thus, the pursuit of environmental sustainability has become a global imperative as countries increasingly adopt measu...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-03-01
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| Series: | Journal of Innovation & Knowledge |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2444569X25000241 |
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| author | Aleksy Kwilinski Oleksii Lyulyov Tetyana Pimonenko |
| author_facet | Aleksy Kwilinski Oleksii Lyulyov Tetyana Pimonenko |
| author_sort | Aleksy Kwilinski |
| collection | DOAJ |
| description | The ongoing issues that follow climate change require the implementation of relevant strategies and instruments to accelerate countries’ efforts toward environmental sustainability. Thus, the pursuit of environmental sustainability has become a global imperative as countries increasingly adopt measures to enhance their environmental, social, and governance (ESG) performance. Moreover, an effective system of financial support is needed. This paper aims to assess the impact of green finance on the environmental dimension of ESG performance in European Union (EU) countries from 2008 to 2020. The study applies the following methods: (1) a spatial Durbin model to examine the relationship between green finance and environmental performance within the EU context and (2) entropy methods to assess the environmental dimension of ESG performance. The findings reveal that green finance initiatives play a significant role in driving positive environmental outcomes within a country's ESG performance. By channeling financial resources toward environmentally friendly projects and businesses, green finance facilitates the transition to a low-carbon and resource-efficient economy. It enables the implementation of renewable energy projects, energy efficiency improvements, sustainable infrastructure development, and ecosystem preservation efforts. These initiatives contribute to reducing greenhouse gas emissions, mitigating climate change risks, conserving natural resources, and protecting biodiversity. |
| format | Article |
| id | doaj-art-082147c5cec249bf8950b287be929de1 |
| institution | OA Journals |
| issn | 2444-569X |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Innovation & Knowledge |
| spelling | doaj-art-082147c5cec249bf8950b287be929de12025-08-20T01:49:22ZengElsevierJournal of Innovation & Knowledge2444-569X2025-03-0110210067410.1016/j.jik.2025.100674The role of green finance in attaining environmental sustainability within a country's ESG performanceAleksy Kwilinski0Oleksii Lyulyov1Tetyana Pimonenko2Department of Marketing, Sumy State University, 40007 Sumy, Ukraine; The London Academy of Science and Business, 120 Baker St., London W1U 6TU, UK; Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, Poland; Corresponding author.Department of Marketing, Sumy State University, 40007 Sumy, Ukraine; Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, PolandDepartment of Marketing, Sumy State University, 40007 Sumy, Ukraine; Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, PolandThe ongoing issues that follow climate change require the implementation of relevant strategies and instruments to accelerate countries’ efforts toward environmental sustainability. Thus, the pursuit of environmental sustainability has become a global imperative as countries increasingly adopt measures to enhance their environmental, social, and governance (ESG) performance. Moreover, an effective system of financial support is needed. This paper aims to assess the impact of green finance on the environmental dimension of ESG performance in European Union (EU) countries from 2008 to 2020. The study applies the following methods: (1) a spatial Durbin model to examine the relationship between green finance and environmental performance within the EU context and (2) entropy methods to assess the environmental dimension of ESG performance. The findings reveal that green finance initiatives play a significant role in driving positive environmental outcomes within a country's ESG performance. By channeling financial resources toward environmentally friendly projects and businesses, green finance facilitates the transition to a low-carbon and resource-efficient economy. It enables the implementation of renewable energy projects, energy efficiency improvements, sustainable infrastructure development, and ecosystem preservation efforts. These initiatives contribute to reducing greenhouse gas emissions, mitigating climate change risks, conserving natural resources, and protecting biodiversity.http://www.sciencedirect.com/science/article/pii/S2444569X25000241F64F65O36Q01Q56 |
| spellingShingle | Aleksy Kwilinski Oleksii Lyulyov Tetyana Pimonenko The role of green finance in attaining environmental sustainability within a country's ESG performance Journal of Innovation & Knowledge F64 F65 O36 Q01 Q56 |
| title | The role of green finance in attaining environmental sustainability within a country's ESG performance |
| title_full | The role of green finance in attaining environmental sustainability within a country's ESG performance |
| title_fullStr | The role of green finance in attaining environmental sustainability within a country's ESG performance |
| title_full_unstemmed | The role of green finance in attaining environmental sustainability within a country's ESG performance |
| title_short | The role of green finance in attaining environmental sustainability within a country's ESG performance |
| title_sort | role of green finance in attaining environmental sustainability within a country s esg performance |
| topic | F64 F65 O36 Q01 Q56 |
| url | http://www.sciencedirect.com/science/article/pii/S2444569X25000241 |
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