Sustainable development through green finance—An exploratory investigation in the financial industry of France

Mariam Sohail, Soha Khan, Ahsan Akbar, Martina Hedvicakova, Syed Arslan Haider

Article ID: 4668
Vol 8, Issue 7, 2024

VIEWS - 1608 (Abstract)

Abstract


In order to meet the Sustainable Development Goals (SDGs) of the United Nations and address the growing global concern for ecologically responsible activities, this study examines the role that French financial institutions play in financing a green future and promoting sustainable development (SD). Through semi-structured interviews with twelve participants from banks and Fintech companies, the research investigates their familiarity with green financing commitments to international organizations and associations, their views on the growth potential of green finance, and the provision of green finance products. Additionally, it explores the connection between green finance and its positive influence on SD. Data analysis was performed using NVivo 12. The findings highlight a strong commitment to green finance and sustainable practices among these institutions, emphasizing the significance of integration and utilization of green finance products across various sectors. This research emphasizes the crucial role of financial institutions in France in driving a greener and more sustainable future through green finance.


Keywords


green finance; sustainable development; Environmental, Social, and Governance (ESG); financial institutions

Full Text:

PDF


References


Afzal, A., Rasoulinezhad, E., & Malik, Z. (2022). Green finance and sustainable development in Europe. Economic Research-Ekonomska Istraživanja, 35(1), 5150–5163. https://doi.org/10.1080/1331677x.2021.2024081 Agirman, E., & Osman, A. B. (2019). Green finance for sustainable development: A theoretical study. Avrasya Sosyal ve Ekonomi Araştırmaları Dergisi, 6(1), 243-253. Agricole, C. (2020). Green finance Crédit Agricole. Available online: https://www.credit-agricole.com/en/news-channels/the-channels/green-finance (accessed on 12 January 2024). Akadiri, S. S., & Adebayo, T. S. (2021). Asymmetric nexus among financial globalization, non-renewable energy, renewable energy use, economic growth, and carbon emissions: impact on environmental sustainability targets in India. Environmental Science and Pollution Research, 29(11), 16311–16323. https://doi.org/10.1007/s11356-021-16849-0 Akbar, A., Gul, A., Sohail, M., et al. (2024). Impact of Renewable and Non-Renewable Energy Resources on CO2 Emission: Empirical Evidence from SAARC. International Journal of Energy Economics and Policy, 14(1), 141. Alola, A. A., Alola, U. V., Akdag, S., et al. (2022). The role of economic freedom and clean energy in environmental sustainability: implication for the G-20 economies. Environmental Science and Pollution Research, 29(24), 36608–36615. https://doi.org/10.1007/s11356-022-18666-5 Alseiari, K., & Nobanee, H. (2021). The Role of Green Bonds in Aiding Sustainable Development. Available online: https://www.researchgate.net/publication/354375957_The_Role_of_Green_Bonds_in_Aiding_Sustainable_Development (accessed on 12 January 2024). AMF. (2021). Sustainable finance: for 76% of French people, the environmental impact of investments is an important issue. Available online: https://www.amf-france.org/en/news-publications/news-releases/amf-news-releases/sustainable-finance-76-french-people-environmental-impact-investments-important-issue (accessed on 12 January 2024). Arslan, H. M., Khan, I., Latif, M. I., et al. (2022). Understanding the dynamics of natural resources rents, environmental sustainability, and sustainable economic growth: new insights from China. Environmental Science and Pollution Research, 29(39), 58746–58761. https://doi.org/10.1007/s11356-022-19952-y Barber, B. M., Morse, A., & Yasuda, A. (2021). Impact investing. Journal of Financial Economics, 139(1), 162–185. https://doi.org/10.1016/j.jfineco.2020.07.008 Bhardwaj, A., Dagar, V., Khan, M. O., et al. (2022). Smart IoT and Machine Learning-based Framework for Water Quality Assessment and Device Component Monitoring. Environmental Science and Pollution Research, 29(30), 46018–46036. https://doi.org/10.1007/s11356-022-19014-3 Bhutta, U. S., Tariq, A., Farrukh, M., et al. (2022). Green bonds for sustainable development: Review of literature on development and impact of green bonds. Technological Forecasting and Social Change, 175, 121378. https://doi.org/10.1016/j.techfore.2021.121378 Boddy, C. R. (2016). Sample size for qualitative research. Qualitative Market Research: An International Journal, 19(4), 426–432. https://doi.org/10.1108/qmr-06-2016-0053 Camana, D., Manzardo, A., Toniolo, S., et al. (2021). Assessing environmental sustainability of local waste management policies in Italy from a circular economy perspective. An overview of existing tools. Sustainable Production and Consumption, 27, 613–629. https://doi.org/10.1016/j.spc.2021.01.029 Cen, T., & He, R. (2018). Fintech, Green Finance and Sustainable Development. Proceedings of the 2018 International Conference on Management, Economics, Education, Arts and Humanities (MEEAH 2018). https://doi.org/10.2991/meeah-18.2018.40 Cheberyako, O. V., Varnalii, Z. S., Borysenko, O. A., et al. (2021). “Green” finance as a modern tool for social and environmental security. IOP Conference Series: Earth and Environmental Science, 915(1), 012017. https://doi.org/10.1088/1755-1315/915/1/012017 Chin, M.-Y., Ong, S.-L., Ooi, D. B.-Y., et al. (2022). The impact of green finance on environmental degradation in BRI region. Environment, Development and Sustainability, 26(1), 303–318. https://doi.org/10.1007/s10668-022-02709-5 Chishti, M. Z., & Sinha, A. (2022). Do the shocks in technological and financial innovation influence the environmental quality? Evidence from BRICS economies. Technology in Society, 68, 101828. https://doi.org/10.1016/j.techsoc.2021.101828 Chowdhury, T., Datta, R., & Mohajan, H. (2013). Green finance is essential for economic development and sustainability. International Journal Of Research In Commerce, Economics & Management, 3(10), 104-108. Clarke, V., & Braun, V. (2013). Teaching thematic analysis: Overcoming challenges and developing strategies for effective learning. The psychologist, 26(2), 120-123. Constantinou, C. S., Georgiou, M., & Perdikogianni, M. (2017). A comparative method for themes saturation (CoMeTS) in qualitative interviews. Qualitative Research, 17(5), 571–588. https://doi.org/10.1177/1468794116686650 Deng, H, & Cheng. (2019). FinTech and Sustainable Development: Evidence from China based on P2P Data. Sustainability, 11(22), 6434. https://doi.org/10.3390/su11226434 Duchêne, S. (2020). Review of Handbook of Green Finance. Ecological Economics, 177, 106766. https://doi.org/10.1016/j.ecolecon.2020.106766 Finance, G. (2016). A bottom-up approach to track existing flows. International Finance Corporation (IFC), World Bank Group (WBG). Flammer, C. (2021). Corporate green bonds. Journal of Financial Economics, 142(2), 499–516. https://doi.org/10.1016/j.jfineco.2021.01.010 Fu, W., & Irfan, M. (2022). Does Green Financing Develop a Cleaner Environment for Environmental Sustainability: Empirical Insights From Association of Southeast Asian Nations Economies. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.904768 Fugard, A. J. B., & Potts, H. W. W. (2015). Supporting thinking on sample sizes for thematic analyses: a quantitative tool. International Journal of Social Research Methodology, 18(6), 669–684. https://doi.org/10.1080/13645579.2015.1005453 Garg, S., & Sharma, V. (2017). Green marketing: an emerging approach to sustainable development. International Journal of Applied Agricultural Research, 12(2), 177-184. Geoghegan, T. (2015). Global goals for sustainable development. Available online: https://www.iied.org/global-goals-for-sustainable-development (accessed on 12 January 2024). GFI, Globalising Green Finance: The UK as an International Hub City of London. (2016). Available online: https://www.cbd.int/financial/gcf/uk-hubgreenfinance.pdf (accessed on 12 January 2024). Giglio, F. (2021). Fintech: A Literature Review. European research studies journal, XXIV(Issue 2B), 600–627. https://doi.org/10.35808/ersj/2254 Gilchrist, D., Yu, J., & Zhong, R. (2021). The Limits of Green Finance: A Survey of Literature in the Context of Green Bonds and Green Loans. Sustainability, 13(2), 478. https://doi.org/10.3390/su13020478 Habiba, U., & Xinbang, C. (2022). The impact of financial development on CO2 emissions: new evidence from developed and emerging countries. Environmental Science and Pollution Research, 29(21), 31453–31466. https://doi.org/10.1007/s11356-022-18533-3 Hassan, S. T., Batool, B., Zhu, B., et al. (2022). Environmental complexity of globalization, education, and income inequalities: New insights of energy poverty. Journal of Cleaner Production, 340, 130735. https://doi.org/10.1016/j.jclepro.2022.130735 He, Z., Liu, Z., Wu, H., et al. (2020). Research on the Impact of Green Finance and Fintech in Smart City. Complexity, 2020, 1–10. https://doi.org/10.1155/2020/6673386 Hennink, M. M., Kaiser, B. N., & Marconi, V. C. (2016). Code Saturation Versus Meaning Saturation. Qualitative Health Research, 27(4), 591–608. https://doi.org/10.1177/1049732316665344 Huang, Z., Liao, G., & Li, Z. (2019). Loaning scale and government subsidy for promoting green innovation. Technological Forecasting and Social Change, 144, 148–156. https://doi.org/10.1016/j.techfore.2019.04.023 Hunjra, A. I., Hassan, M. K., Zaied, Y. B., et al. (2023). Nexus between green finance, environmental degradation, and sustainable development: Evidence from developing countries. Resources Policy, 81, 103371. https://doi.org/10.1016/j.resourpol.2023.103371 International Institute for Sustainable Development-Sustainable Development. (2020). Available online: https://www.iisd.org/mission-and-goals/sustainable-development (accessed on 12 January 2024). Irfan, M., & Ahmad, M. (2022). Modeling consumers’ information acquisition and 5G technology utilization: Is personality relevant? Personality and Individual Differences, 188, 111450. https://doi.org/10.1016/j.paid.2021.111450 Jayathilake, S. (2019). Impact of Green Financing for the Corporate Governance in the Banking Industry. OIDA International Journal of Sustainable Development, 12(11), 23-30. Kader, F. A., & Nobanee, H. (2022). Sustainable financial practices in France. Research Gate. Available online: https://www.researchgate.net/publication/358916379_Sustainable_Financial_Practices_in_France (accessed on 12 January 2024). Khan, S., Akbar, A., Nasim, I., et al. (2022). Green finance development and environmental sustainability: A panel data analysis. Frontiers in Environmental Science, 10, 1039705. Kwilinski, A., Lyulyov, O., & Pimonenko, T. (2023). Spillover Effects of Green Finance on Attaining Sustainable Development: Spatial Durbin Model. Computation, 11(10), 199. https://doi.org/10.3390/computation11100199 Lélé, S. M. (1991). Sustainable development: a critical review. World development, 19(6), 607-621. https://doi.org/10.1016/0305-750X(91)90197-P Li, C., & Umair, M. (2023). Does green finance development goals affects renewable energy in China. Renewable Energy, 203, 898–905. https://doi.org/10.1016/j.renene.2022.12.066 Li, Z.-Z., Li, R. Y. M., Malik, M. Y., et al. (2021). Determinants of Carbon Emission in China: How Good is Green Investment? Sustainable Production and Consumption, 27, 392–401. https://doi.org/10.1016/j.spc.2020.11.008 Ma, M., Zhu, X., Liu, M., et al. (2023). Combining the role of green finance and environmental sustainability on green economic growth: Evidence from G-20 economies. Renewable Energy, 207, 128–136. https://doi.org/10.1016/j.renene.2023.02.046 Nassiry, D., & Wheeler, D. (2011). A Green Venture Fund to Finance Clean Technology for Developing Countries. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1824645 Nations, U. (2021). Financing for Sustainable Development Report 2021. UN Department of Economic and Social Affairs. Available online: https://reliefweb.int/report/world/financing-sustainable-development-report-2021?gad_source=1&gclid=EAIaIQobChMIv_WX07WHhQMVr4q5BR0waAcqEAAYAiAAEgJNpvD_BwE (accessed on 3 October 2023). Nawaz, M. A., Seshadri, U., Kumar, P., et al. (2020). Nexus between green finance and climate change mitigation in N-11 and BRICS countries: empirical estimation through difference in differences (DID) approach. Environmental Science and Pollution Research, 28(6), 6504–6519. https://doi.org/10.1007/s11356-020-10920-y Nguyen, A. H., Do, M. H. T., Hoang, T. G., et al. (2022). Green financing for sustainable development: Insights from multiple cases of Vietnamese commercial banks. Business Strategy and the Environment, 32(1), 321–335. Portico. https://doi.org/10.1002/bse.3132 Ozili, P. K. (2022). Green finance research around the world: a review of literature. International Journal of Green Economics, 16(1), 56. https://doi.org/10.1504/ijge.2022.125554 Pham, T. T. T. (2018). Assessing the role of green credit for green growth and sustainable development in Vietnam [Master’s thesis]. University of Tampere. PRI-Development of sustainable finance policy in France. (2022). Available online: https://www.unpri.org/news-and-press/development-of-sustainable-finance-policy-in-france/10631.article (accessed on 3 October 2023). Rahman, S., Moral, I. H., Hassan, M., et al. (2022). A systematic review of green finance in the banking industry: perspectives from a developing country. Green Finance, 4(3), 347–363. https://doi.org/10.3934/gf.2022017 Reboredo, J. C. (2018). Green bond and financial markets: Co-movement, diversification and price spillover effects. Energy Economics, 74, 38–50. https://doi.org/10.1016/j.eneco.2018.05.030 Sachs, J. D., Woo, W. T., Yoshino, N., et al. (2019). Why Is Green Finance Important? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3327149 Sadiq, M., Le-Dinh, T., Tran, T. K., et al. (2023). The role of green finance, eco-innovation, and creativity in the sustainable development goals of ASEAN countries. Economic Research-Ekonomska Istraživanja, 36(2). https://doi.org/10.1080/1331677x.2023.2175010 Saleena, T. A. (2014). Go Green: Banking Sector’s Perspective. Abhinav-National Monthly Refereed Journal of Research in Commerce & Management, 3(11), 26-32. Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students. Pearson education. Research Methods for Business Students. Pearson, New York. Shahbaz, M., Nasir, M. A., & Roubaud, D. (2018). Environmental degradation in France: The effects of FDI, financial development, and energy innovations. Energy Economics, 74, 843–857. https://doi.org/10.1016/j.eneco.2018.07.020 Shahzad, A., Zahrullail, N., Akbar, A., et al. (2022). COVID-19’s Impact on fintech adoption: Behavioral intention to use the financial portal. Journal of Risk and Financial Management, 15(10), 428. Sun, Y., Sun, H., Ma, Z., et al. (2022). An Empirical Test of Low-Carbon and Sustainable Financing’s Spatial Spillover Effect. Energies, 15(3), 952. https://doi.org/10.3390/en15030952 Udeagha, M. C., & Ngepah, N. (2023). The drivers of environmental sustainability in BRICS economies: Do green finance and fintech matter? World Development Sustainability, 3, 100096. https://doi.org/10.1016/j.wds.2023.100096 Volz, U. (2018). Fostering Green Finance for Sustainable Development in Asia. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3198680 Wang, Y., & Zhi, Q. (2016). The Role of Green Finance in Environmental Protection: Two Aspects of Market Mechanism and Policies. Energy Procedia, 104, 311–316. https://doi.org/10.1016/j.egypro.2016.12.053 Wang, X., & Wang, S. (2020). The Impact of Green Finance on Inclusive Economic Growth—Empirical Analysis Based on Spatial Panel. Open Journal of Business and Management, 08(05), 2093–2112. https://doi.org/10.4236/ojbm.2020.85128 Wang, D., Dong, L., & Mei, J. (2023). An advanced review of climate change mitigation policies in Germany, France, and the Netherlands. Environmental Research Letters, 18(10), 103001. https://doi.org/10.1088/1748-9326/acf58f Wei, R., Ayub, B., & Dagar, V. (2022). Environmental Benefits From Carbon Tax in the Chinese Carbon Market: A Roadmap to Energy Efficiency in the Post-COVID-19 Era. Frontiers in Energy Research, 10. https://doi.org/10.3389/fenrg.2022.832578 Wu, B., Jin, C., Monfort, A., et al. (2021). Generous charity to preserve green image? Exploring linkage between strategic donations and environmental misconduct. Journal of Business Research, 131, 839–850. https://doi.org/10.1016/j.jbusres.2020.10.040 Yanarella, E. J., Levine, R. S., & Lancaster, R. W. (2009). Research and Solutions: “Green” vs. Sustainability: From Semantics to Enlightenment. Sustainability: The Journal of Record, 2(5), 296–302. https://doi.org/10.1089/sus.2009.9838 Youngho, C. (2019). Green finance in Singapore: Barriers and solutions. Available online: https://www.adb.org/sites/default/files/publication/480756/adbi-wp915.pdf (accessed on 8 November 2023). Yu, L., Zhao, D., Xue, Z., et al. (2020). Research on the use of digital finance and the adoption of green control techniques by family farms in China. Technology in Society, 62, 101323. https://doi.org/10.1016/j.techsoc.2020.101323 Zhang, C., Khan, I., Dagar, V., et al. (2022). Environmental impact of information and communication technology: Unveiling the role of education in developing countries. Technological Forecasting and Social Change, 178, 121570. https://doi.org/10.1016/j.techfore.2022.121570 Zhang, D., Awawdeh, A. E., Hussain, M. S., et al. (2021). Assessing the nexus mechanism between energy efficiency and green finance. Energy Efficiency, 14(8). https://doi.org/10.1007/s12053-021-09987-4 Zheng, G.-W., Siddik, A. B., Masukujjaman, M., et al. (2021). Green Finance Development in Bangladesh: The Role of Private Commercial Banks (PCBs). Sustainability, 13(2), 795. https://doi.org/10.3390/su13020795 Zubair Mumtaz, D. M., & Alexander Smith, D. Z. (2019). Green Finance for Sustainable Development in Pakistan. IPRI Journal, 1–34. https://doi.org/10.31945/iprij.190201



DOI: https://doi.org/10.24294/jipd.v8i7.4668

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Mariam Sohail, Soha Khan, Ahsan Akbar, Martina Hedvicakova, Syed Arslan Haider

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.