Does green financing help to improve environmental & social responsibility? Designing SDG framework through advanced quantile modelling

Avik Sinha; Shekhar Mishra; Arshian Sharif; Larisa Yarovaya

doi:10.1016/j.jenvman.2021.112751

Does green financing help to improve environmental & social responsibility? Designing SDG framework through advanced quantile modelling

J Environ Manage. 2021 Aug 15:292:112751. doi: 10.1016/j.jenvman.2021.112751. Epub 2021 May 12.

Authors

Avik Sinha¹, Shekhar Mishra², Arshian Sharif³, Larisa Yarovaya⁴

Affiliations

¹ Centre for Excellence in Sustainable Development, Goa Institute of Management, India. Electronic address: f11aviks@iimidr.ac.in.
² Department of Business Management, C.V. Raman Global University, Bhubaneswar, Odisha, India. Electronic address: shekhar.ximb2019@gmail.com.
³ Othman Yeop Abdullah Graduate School of Business, University Utara Malaysia, Sintok, Kedah, Malaysia; Department of Business Administration, Faculty of Management Sciences, ILMA University, Karachi, Pakistan. Electronic address: arshian.aslam@gmail.com.
⁴ Southampton Business School, University of Southampton, UK. Electronic address: l.yarovaya@soton.ac.uk.

PMID: 33991831
DOI: 10.1016/j.jenvman.2021.112751

Abstract

Striving to achieve the Sustainable Development Goals (SDGs), countries are increasingly embracing a sustainable financing mechanism via green bond financing. Green bonds have attracted the attention of the industrial sector and policymakers, however, the impact of green bond financing on environmental and social sustainability has not been confirmed. There is no empirical evidence on how this financial product can contribute to achieving the goals set out in Agenda 2030. In this study, we empirically analyze the impact of green bond financing on environmental and social sustainability by considering the S&P 500 Global Green Bond Index and S&P 500 Environmental and Social Responsibility Index, from October 1, 2010 to 31st July 2020 using a combination of Quantile-on-Quantile Regression and Wavelet Multiscale Decomposition approaches. Our results reveal that green financing mechanisms might have gradual negative transformational impacts on environmental and social responsibility. Furthermore, we attempt to design a policy framework to address the relevant SDG objectives.

Keywords: Agenda 2030; Environmental and social responsibility; Green bonds; Green financing; Quantile; Wavelet.

MeSH terms

Social Responsibility*
Sustainable Development*