Sustainable Finance: From Green Bonds to ESG Controversies

Résumé

Sustainable finance has grown substantially during the last decade, evolving from a niche to now firmly embedded in mainstream financial practice. However, several questions remain open: Do green financial instruments improve environmental outcomes? Do regulations change corporate behaviour without public scrutiny? Can we trust ESG scores when rating agencies disagree? The debate has matured, no longer fixated on ESG’s value, but on deeper, contextual questions about when, how, and for whom it matters. This special issue of Bankers, Markets & Investors brings together four articles that address these questions directly, examining the real effects of green bonds, the conditions under which climate regulation affects fossil fuel companies, the biases embedded in ESG scoring models, and how financial markets respond when firms face ESG controversies. In terms of perspective, we discuss some research avenues related to green finance, during a period of uncertainty.