What is Sustainable Finance? (Concepts, ESG, and Impact Explained) | Sustainable Finance Ep. 1
In this video, Prof LJ introduces the concept of sustainable finance and explains how financial systems are evolving to support environmental sustainability, social responsibility, and long-term economic resilience.
Sustainable finance integrates environmental, social, and governance (ESG) factors into financial decision-making, enabling investors, businesses, and governments to address global challenges such as climate change, social inequality, and sustainable development.
This lesson explains how sustainable finance represents a paradigm shift from traditional finance—which primarily focuses on short-term profitability and shareholder value—toward a broader perspective that incorporates long-term sustainability risks and opportunities.
This video is part of the Sustainable Finance Series: Financing the Future (Episode 1), designed to provide a structured introduction to sustainable finance concepts and their role in shaping the global economy.
Topics covered:
• Meaning and definition of sustainable finance
• The paradigm shift from traditional finance to sustainable finance
• ESG integration in financial decision-making
• Impact investing and social impact initiatives
• Green finance and climate-related investments
• Green bonds and sustainability-linked loans
• Climate transition financing
• Challenges and future developments in sustainable finance
This lesson is intended for students in Finance, Accounting, Sustainability, and Business, as well as professionals seeking to understand how financial systems are adapting to global sustainability challenges.
For the full Sustainable Finance series, please access the playlist here: • Sustainable Finance – ESG, Green Finance, ...
References:
Schoenmaker & Schramade (2019)
Zhang et al. (2020)
Monira (2024)
Kennedy (2025)
IMF (n.d.)
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