Aug 2026· Energy & Environment· 0 citations· 89 references
Abstract
The growing concern about environmental sustainability has driven the emergence of FinTech solutions that can promote sustainable finance (sustainable finance index (SFI)) and incorporate environmental, social, and governance aspects. However, significant challenges remain that limit its scope and influence, and further research is necessary to clarify its role and effectiveness in the sustainability domain. The main objective of the study is to investigate the interrelationship among FinTech, institutional quality (institutional quality index (IQI)), sustainable finance (SFI), and environmental and social sustainability in the G20 economies. The study employs a battery of methodological tools, including the Method of Moments-Quantile Regression, System-Generalized Method of Moments, and Panel Quantile-on-Quantile Kernel Regularized Least Squares, using panel data covering the period from 2004 to 2023. The empirical results show that FinTech enhances the SFI, and its impact is heterogeneous across various levels of sustainable finance distribution. IQI moderates this association, showing that strong governance, high-quality regulatory frameworks, and sound legal institutions are essential to maximizing FinTech's influence on the SFI. The results also support the idea that the SFI is environmentally and socially sustainable, as evidenced by reductions in ecological footprint and improvement in social welfare. However, FinTech development increases the ecological footprint, creating a sustainability paradox unless it is compatible with green infrastructure, clean energy transitions, and strong institutional frameworks. The study therefore recommends scaling FinTech and SFI initiatives by strengthening institutions, offering incentives to promote green innovation, and harmonizing policies and strategies to achieve socially inclusive, environmentally sustainable development in G20 member states.
Financial technology (FinTech) is recognized as an important enabler of sustainable development. However, it presents a fragmented and limited explanation of how FinTech may contribute to achieving the Sustainable Development Goals (SDGs). Through this hybrid systematic review of 93 articles published between 2015 and May 2026, this study explores responses to these questions. First, it synthesizes four mechanisms through which FinTech contributes to the SDGs: financial inclusion and access to capital, transparency and governance, risk mitigation and resilience, and data‐driven decision‐making. This review develops an integrated theoretical framework combining institutional, innovation diffusion, capability, and stakeholder perspectives. Our analysis suggests that FinTech may contribute unevenly across the economic, social, and climate‐related SDGs and that uncertainty is increasingly conditioning sustainability outcomes. Finally, this review offers theoretical, policy, and future research implications on the subject.
JEL Classification:
A1O1O3
Salman Bahoo, G. Kondrateva, Ramil Khabirov et al.· Business Strategy and the En...· 2 citations
Environmental sustainability has become a critical global concern due to accelerating climate change, environmental degradation, and increasing carbon emissions, highlighting the need for financial systems that support sustainable development. This study examined the influence of sustainable finance on environmental sustainability by investigating the roles of green investment, carbon emissions, and economic growth within the Pakistani context. A quantitative cross-sectional research design was employed, and primary data were collected through a structured five-point Likert scale questionnaire administered via an online Google Form. The study targeted university students, academics, banking and finance professionals, corporate employees, environmental experts, and policymakers from the provinces of Punjab and Sindh, Pakistan, including participants from major public and private universities, financial institutions, and environmental organizations. Using a convenience sampling technique, data were obtained from 433 respondents and analyzed using IBM SPSS Statistics. The analysis included descriptive statistics, Cronbach's alpha reliability analysis, Pearson correlation, multiple linear regression, independent samples t-test, and one-way analysis of variance. The findings revealed that sustainable finance and green investment have significant positive effects on environmental sustainability, whereas carbon emissions exert a significant negative influence. Green investment emerged as the strongest predictor of environmental sustainability, while sustainable finance and economic growth also contributed positively to sustainable environmental outcomes. The study further identified significant differences in environmental sustainability based on respondents' gender and age groups. The results demonstrate that strengthening sustainable financial practices and promoting green investments can effectively support environmental protection while facilitating sustainable economic growth. The study contributes to the growing body of knowledge on sustainable finance by providing empirical evidence from a developing economy and offers practical implications for policymakers, financial institutions, investors, environmental organizations, and corporate decision-makers in designing policies and investment strategies that accelerate the transition toward a low-carbon and environmentally sustainable economy. The findings also provide a valuable foundation for future research on sustainable finance, green investment, and environmental sustainability in emerging economies.
Mohid Sadiq Lone, Muhammad Ali Nawaz, Manahil Asif· Journal of Global Social Tra...· 0 citations
This study examines the relationship between environmental, social, and governance (ESG) performance and firm value in the global energy sector, with a focus on the moderating effects of national culture and green innovation. It analyzes 1960 firm‐year observations from publicly traded energy companies in 35 countries from 2014 to 2023. Results show that ESG performance is positively associated with accounting‐based performance, while its impact on market valuation is limited. National culture plays a significant role: individualism enhances the financial benefits of ESG, whereas power distance and uncertainty avoidance reduce them. Green innovation improves operational performance but does not strengthen the ESG–firm value link, likely because of the short‐term costs of implementation and adjustment. The findings underscore the critical role of institutional context and organizational capabilities in driving value through sustainability initiatives in the energy sector. These results hold consistently across ESG measures, subsample analyses, and endogeneity tests.
Atar Derj, Adil Bami, Slimane Ed-dafali et al.· Corporate Social Responsibil...· 0 citations
The purpose of this study is to examine whether financial development can promote environmental sustainability in the MENA region. In particular, the study investigates the potential of green finance mechanisms as channels through which financial systems may contribute to ecological preservation and reduced environmental degradation. It also assesses the current state of green finance adoption and the broader institutional conditions that shape its effectiveness. To achieve the set of research objectives, four Pooled OLS (Panel Regression) Analysis have been conducted for assessing the impact of financial development under the adoption of green policy trends and institutional quality on the environmental degradation- through its four proxies- in the MENA region, since saving the ecological system is one of the major requirements needed for achieving economic sustainability. Nine countries in the MENA region have been incorporated in the analysis; namely Egypt- Israel- Jordon- Lebanon- Saudi Arabia-Turkey- Qatar- Algeria- and UAE., with the variables throughout the period from 1999 to 2021. The dataset includes various metrics of environmental deterioration and financial development, as well as a thorough set of control variables to account for cofounding influences. The key findings indicate that financial development indicators—namely, private sector credit as a percentage of () and net inflows () ()—exhibit a statistically significant negative relationship with environmental degradation, as measured by carbon dioxide emissions, natural resource depletion, greenhouse gas emissions, and energy use.
Ghada H. Ashour, M. Sayed, Abdelaziz Abdelmegid Ali· International Journal of Ene...· 0 citations
The rapid diffusion of Environmental, Social and Governance (ESG) frameworks has reshaped the objectives of corporate sustainability, placing environmental policy at the core of responsible business transformation. Yet, the pathways through which environmental regulations influence ESG performance remain insufficiently understood, and governance strategies to optimize regulatory outcomes are still evolving. This study investigates the multidimensional impacts of environmental policy on provincial ESG performance, focusing on regulatory intensity, policy instruments, and institutional environments. Drawing on a mixed‐quantitative analytical approach, the research reveals that during the period from 2007 to 2023, ESG levels exhibited a continuous upward trend. There are substantial differences in ESG level across regions in China. The implementation of environmental policy can effectively improve the level of ESG. The greater the level of economic development (lnx1), population density (lnx2), fiscal revenue level (lnx3), and advanced industrial structure (lnx4), the higher the regional ESG level. Moreover, it differs considering region, population size, and economic development. Moreover, policy effectiveness is amplified when supplemented by transparent information systems and stakeholder participation. This paper provides practical guidance for policymakers, regulators, and enterprises in designing integrated development strategies that leverage environmental policy as a catalyst for sustainable ESG development.
Min Li, Jinrui Zhang, Fangfang Wang et al.· Sustainable Development· 0 citations
Sustainability for small and medium-sized enterprises involves the balanced integration of economic, social, environmental and governance objectives into their daily activity. For SMEs, sustainable development does not only mean reducing negative environmental impact, but also using resources efficiently, strengthening responsibility toward employees and the community, respecting ethical principles and maintaining stable economic performance in the long term. The purpose of this paper is to analyze the main sustainability principles applicable to SMEs and to highlight their role in increasing competitiveness and resilience. The research methodology is based on qualitative analysis, comparative analysis and the examination of specialized literature and sustainability frameworks. The findings emphasize that the adoption of ESG principles contributes to improved operational efficiency, stronger stakeholder trust, better access to financing and long-term business stability. At the same time, SMEs face challenges related to limited financial resources, managerial expertise and access to green technologies. Therefore, sustainability should be integrated into the strategic development of SMEs and supported through institutional initiatives and simplified sustainability reporting frameworks.
Svetlana Vrabie, Alina Suslenco· Development Through Research...· 0 citations