Green Finance for Sustainable Aviation: Stakeholder Perspectives and Systematic Review

Abstract

Purpose: This systematic literature review aims to examine the relationship between ESG ratings, sustainability performance, and green finance in the aviation industry. The primary purpose of this study is to provide insights into the opportunities and challenges of green and sustainable finance in the aviation industry. Theoretical framework: The study draws on the concept of green finance, which has gained significant attention in recent years. The theoretical framework of this study is based on the need for a comprehensive approach that includes policy incentives, technological innovation, and sustainable fuels to achieve sustainable aviation. Design/methodology/approach: The study adopted the systematic literature review (SLR) method to analyse the existing literature, following three steps for research; planning the review, conducting the review, and reporting. Findings: The study finds that sustainable finance and investment are critical in achieving sustainable aviation. The use of sustainable aviation fuel is essential, but investment is needed to scale up production and reduce costs. Stakeholder involvement in financing ESG factors and sustainability issues is crucial, with standardization, awareness, and incentives necessary to promote sustainable finance and ESG practices in the aviation industry. Green finance can support emissions reduction and promote sustainable development in aviation, but more investment and collaboration are required. Research, Practical & Social implications: The study recommends transitioning to a low-carbon industry, with sustainable finance playing a critical role in making this transition possible. The study has practical implications for understanding the subject in the context of ESG criteria and its contribution to sustainability in the aviation industry. The originality value lies in the comprehensive analysis of the existing literature, highlighting the importance of green and sustainable finance in achieving sustainability goals. The study's social implications are significant, given the critical role aviation plays in global emissions, underscoring the need for a sustainable aviation industry. Originality/value: The study's originality value lies in the comprehensive analysis of the existing literature, highlighting the importance of green and sustainable finance in achieving sustainability goals. It provides insights into the opportunities and challenges of green and sustainable finance in the aviation industry, making a significant contribution to the existing literature.