Abstract
The longstanding debate of whether environmental, social and governance (ESG) issues impact financial performance appears to have given way to identifying the best way for firms to achieve long-term sustainability. In this essay, we suggest that overlaying ESG issues with the United Nations’ Sustainable Development Goals (SDGs) provides an avenue for firms to transition to sustainable business models. To this end, the pursuit of sustainable opportunities via blended finance, mechanisms whereby the private sector, nonprofits and public actors work together in an effort to tackle the most pressing global challenges, could help to de-risk private sector involvement in sustainable development. We argue that de-risking occurs through three mechanisms: (1) identification of material ESG issues for firms, (2) the use of subsidy via blended finance instruments, and (3) trust brokering from civil society and public sector actors. Through two illustrative case studies, we identify the challenges and opportunities of blended finance to serve as a tool to meet Agenda 2030.
| Original language | English |
|---|---|
| Title of host publication | Measuring sustainability and CSR |
| Subtitle of host publication | From reporting to decision-making |
| Editors | Slobodan Kacanski, Johannes Kabderian Dreyer, Kristian J. Sund |
| Publisher | Springer Science and Business Media B.V. |
| Pages | 37-48 |
| Number of pages | 12 |
| ISBN (Electronic) | 978-3-031-26959-2 |
| ISBN (Print) | 978-3-031-26958-5, 978-3-031-26961-5 |
| DOIs | |
| State | Published - 2023 |
| Externally published | Yes |
Publication series
| Name | Ethical Economy |
|---|---|
| Volume | 64 |
| ISSN (Print) | 2211-2707 |
| ISSN (Electronic) | 2211-2723 |
Bibliographical note
Publisher Copyright:© 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.
