Integrating Sustainability: A Theoretical Review of Green Finance Practices and Their Impact on Organizational Performance

Green financing is to increase level of financial flows (from banking, micro-credit, insurance and investment) from the public, private and not-for-profit sectors to sustainable development priorities. A key part of this is to better manage environmental and social risks, take up opportunities that bring both a decent rate of return and environmental benefit and deliver greater accountability. Green financing could be promoted through changes in countries’ regulatory frameworks, harmonizing public financial incentives, increases in green financing from different sectors, alignment of public sector financing decision-making with the environmental dimension of the Sustainable Development Goals, increases in investment in clean and green technologies, financing for sustainable natural resource-based green economies and climate smart blue economy, increase use of green bonds, and so on. This theoretical paper aims to define and discuss the Green finance construct, strategies, and consequences. This paper seeks to review the literature in order to understand the drivers of Green finance, the different practices involved in the process, and the difficulties likely to be encountered in the implementation of green strategies. The issues mentioned in the review of Green finance are also the benefits of Green finance on the organization and its performance, employee involvement, and sustainability. Finally, this paper aims to offer recommendations to organizations that want to strengthen their environmental accountability finance strategies.