Exploring the Potential of Green Finance: a Narrative Literature Review

Abstract

Objective: Investigate the potential of green finance in order to explore its impact on environmental sustainability and the financial performance of companies.   Theoretical Framework: The fundamental concepts underpinning the research are presented, with a focus on green finance, sustainable investments, green bonds, and ESG criteria. This provides a solid basis for understanding the research context.   Method: The research was conducted through a narrative review of the literature with a bibliographic and qualitative nature, involving scientific references in the Google Scholar and CAPES periodical databases. A total of 45 relevant publications were selected from the database using a combination of keywords to present the results of this study.   Results and Discussion: The findings indicate that green finance implementations exert a favorable influence on environmental sustainability, underscoring the efficacy of green financial instruments in promoting sustainable projects and, consequently, fostering renewable energy production and enhancing energy efficiency. The analysis further indicates a growing body of literature on green finance, underscoring the importance of sustainable finance in the current global context.   Research Implications: The practical and theoretical implications of this research reflect on how green finance can be integrated into business strategies and influence practices in the field of financial management, contributing to sustainability.   Originality/Value: It contributes to the literature by offering a comprehensive review of green finance, highlighting its relevance in a growing context of environmental concern and the need for responsible financial practices.