Investment Attractiveness of "Green" Financial Instruments

Authors

  • Alina Shaydurova Financial University under the Government of the Russian Federation, Moscow
  • Svetlana Panova Financial University under the Government of the Russian Federation, Moscow
  • Raisa Fedosova Financial University under the Government of the Russian Federation, Moscow
  • Galina Zlotnikova Financial University under the Government of the Russian Federation, Moscow

Keywords:

Sustainable development, sustainable investing, ESG principles., "green" bonds, "green" indices

Abstract

Nowadays the largest institutional investors and exchange-traded funds invest a great part of their portfolio in the assets connected with environmental-friendly activities. "Green" financial instruments can accumulate resources for climate change adaptation and infrastructure projects in areas such as renewable energy generation, energy effectiveness, clean water, low-carbon transport, etc. Thus, the concept of sustainable development not only pay attention to the climate risks but also creates new factor of investment attractiveness and makes the investment process more conscious and less speculative. Governments are also interested in the development of "green" instruments as their can play a significant role in the adaptation to the climate change and movement of the capital flows from the financial sector into the ecological industrial projects. The study shows that the necessary funds can be accumulated successfully due to defensive character of "green" instruments and their sustainability to the market shocks.

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Published

2018-11-12

Issue

Section

Special Issue - Modern Corporate Finance: New Approaches and Decisions