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Socially Responsible Investing (SRI) has grown to become a $40 trillion market in 2024 and accounts for about 36% of global assets under management (AUM). This expansion in ethical investment is a huge step towards sustainability as investors today expect both financial return and social and environmental returns. Green bonds, one of the most prominent areas of sustainable finance, have witnessed exponential growth with more than $3 trillion issuance with 30% yearly growth since 2020. These financial products have facilitated investment in renewable energy, climate adaptation projects and green infrastructure around the world. Climate finance is expected to reach $5 trillion a year by 2030. It is very important for companies and startups to make the transition to low-carbon business models. Impact investing, as a type of socially responsible investing (SRI), has provided better financial returns. Nearly 60% of impact investment funds have outperformed conventional market indices in a five-year span. ESG (Environmental, Social, and Governance) metrics have also gained prominence, impacting 88% of institutional investors in their investment decisions. Even with such advancements, challenges such as regulatory fragmentation, greenwashing and limited access for nascent sustainable entrepreneurs still exist. It has been discovered that more than 70% of SMEs find it challenging to access climate-compatible finance, and this calls for inclusive financing instruments. Policy interventions including tax credits, ESG disclosure requirements and state-backed green investment funds can assist in filling the finance gap. This chapter is an empirical study of SRI's contribution to sustainable entrepreneurship, supported by empirical facts, case studies and worldwide financial trends. With green bonds and climate finance, companies can power economic growth with net-zero ambitions. The future of sustainable finance is based on open disclosure, investor confidence and adopting technology-based models of investing, including blockchain-based ESG tracking.

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The Financial Power of Socially Responsible Investment (SRI): Green Bonds and Climate Finance as Catalysts for Sustainable Entrepreneurship

  • 章节

  • 发表日期：

    2026年

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  • Priyant Banerjee,
  • Arshad Bhat,
  • Firdous A. Malik

摘要

Socially Responsible Investing (SRI) has grown to become a $40 trillion market in 2024 and accounts for about 36% of global assets under management (AUM). This expansion in ethical investment is a huge step towards sustainability as investors today expect both financial return and social and environmental returns. Green bonds, one of the most prominent areas of sustainable finance, have witnessed exponential growth with more than $3 trillion issuance with 30% yearly growth since 2020. These financial products have facilitated investment in renewable energy, climate adaptation projects and green infrastructure around the world. Climate finance is expected to reach $5 trillion a year by 2030. It is very important for companies and startups to make the transition to low-carbon business models. Impact investing, as a type of socially responsible investing (SRI), has provided better financial returns. Nearly 60% of impact investment funds have outperformed conventional market indices in a five-year span. ESG (Environmental, Social, and Governance) metrics have also gained prominence, impacting 88% of institutional investors in their investment decisions. Even with such advancements, challenges such as regulatory fragmentation, greenwashing and limited access for nascent sustainable entrepreneurs still exist. It has been discovered that more than 70% of SMEs find it challenging to access climate-compatible finance, and this calls for inclusive financing instruments. Policy interventions including tax credits, ESG disclosure requirements and state-backed green investment funds can assist in filling the finance gap. This chapter is an empirical study of SRI's contribution to sustainable entrepreneurship, supported by empirical facts, case studies and worldwide financial trends. With green bonds and climate finance, companies can power economic growth with net-zero ambitions. The future of sustainable finance is based on open disclosure, investor confidence and adopting technology-based models of investing, including blockchain-based ESG tracking.