Environmental finance under ESG: A literature review and synthesis

This paper aims to review the literature on ESG (environment, social, and governance) Finance based on the Scopus database and to synthesize the review. Three advantages of embracing ESG into corporate finance are identified based on the literature reviewed. First, this positively influences financial investment decisions; second, it can leverage advancements in technology and innovations; and third, it can create proactive risk management. Overall, it is still believed and conceptually accepted that integrating ESG criteria within the investment decision-making process brings a consolidated approach to the investment strategy, aligning social and environmental benefits with financial returns and driving positive performance and shareholder value in the long run.