Green Bonds: A Mini-Review
19 Pages Posted: 10 Mar 2020
Date Written: February 15, 2020
The globalization process continues to threaten various sectors due to the associated adverse effects of climate change. Financial management has been found to have a positive correlation with sustainable practice. With many institutions increasingly expressing concerns about the reality of global warming, sustainability has become a critical tool in responding to climate changes. The objective of this mini literature review was to explore the published literature to comprehend the role of green bonds in aiding sustainability. The articles used for the analysis were obtained from two sets of databases. Twenty publications were retrieved from Scopus, an online repository with thousands of scholarly references, while the remaining five were obtained from the SSRN database. The findings revealed that green bonds are obviously used by various agencies to achieve sustainable growth, thus addressing the problem of climate change. Notably, the effective execution of financial management has the potential to enhance sustainable business operations. Critical to achieving this objective is the issuance of green bonds to finance ecologically sound projects. Nonetheless, the feasibility of green bonds in contributing to sustainability is undermined by several challenges. Some of the significant impediments include the absence of appropriate organizational arrangements, the high cost of processing transactions, and the considerable volatility clustering. The role of green bonds in aiding sustainability can be significantly improved by addressing these critical limitations.
Suggested Citation: Suggested Citation