In 1987, the United Nations World Commission on Environment and Development published a report entitled “Our Common Future”[1]. The report drew attention to the causes of global environmental problems and defined sustainable development as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.
Sustainability is shaping companies and capital markets as a transformative force. Capital markets are evolving towards an approach that takes into account not only direct financial gains but also social and environmental impacts. As a reflection of the sustainability transformation in capital markets, environmental, social and corporate governance criteria are becoming increasingly important. Investors and other capital market players now pay attention not only to financial performance, but also to companies’ environmental impact, social contributions and ethical governance practices. This leads to environmental, social and corporate governance criteria playing an important role in investment decisions.
The impact of sustainability on companies is reflected in the projects they undertake and the financing of these projects. In this context, green finance offers an innovative approach to financing environmentally friendly projects. Green bonds are used by companies to attract investors who are particularly interested in investing in environmental and energy efficiency projects.