Building a Sustainable Future: Factors Influencing the Growth of Green and Sustainable Bonds in India Using PLS SEM and IPMA
摘要
Overview: This research examines the key factors influencing investors in India’s growth of the GSB market. It examines the diverse behaviour and motivations of investors in influencing the various factors for the expansion of the Indian GB market. This research aims to provide a broad understanding of the factors and obstacles of the GSB market in India. Methodology: This study uses Smart PLS-SEM to test hypotheses about factors influencing GSB growth in India. It also uses IPMA to provide a practical framework for understanding the importance and current performance of these factors. This approach offers concrete, actionable recommendations for participants. The model includes constructs representing financial, social and environmental, economic and political, and infrastructural factors. Conclusion: The market must expand to establish a sustainable financial system that can support green initiatives and national environmental objectives. The expansion of the market depends upon sound financial incentives and a well-defined infrastructure. Reducing greenwashing risks by independent verification can also enhance public trust in GSBs. With these coordinated efforts among issuers, legislators, investors, and stakeholders can advance GSB transition in India. Managerial and social Implications: The finding suggests that issuers should focus on the financial aspects of GSB, such as lower borrowing costs. It also suggests focusing on improving infrastructure through defined regulations concerning issuance, reporting, and verification. This research highlights that public awareness and engagement through social media play a very important role in shaping investor sentiment and motivates enterprises to adopt sustainable practices in the GSB market.