Research on Green Finance Facilitating Enterprise ESG Development

Abstract

While past studies have focused on the emergence and application of green finance as a contemporary financial concept, little attention has been given to its relationship with environmental, social, and governance (ESG) performance. Green finance and ESG intertwine systematically and complexly, making it essential for organizations to employ suitable coordination frameworks to facilitate the control of the relationship. This research paper aims to explore how advancements in green finance research facilitate ESG development. Using a secondary research literature review approach, the research paper expounds on the conceptual foundation of green finance and ESG, the intersection between green finance and ESG, and the influence of green finance in environmental stewardship, corporate social responsibility, and enhancing organizational governance. The assessment identifies and outlines the future investment consequences of green financing, including how it will influence the establishment of circular economies at the organizational and national levels. The results underline the crucial importance of facilitating further research on green financing.