The role of financial markets in promoting sustainability – are view and research framework

Increased financial innovation is changing the role of financial markets in the global economy. This research provides a comprehensive literature review on the work done so far on the role financial markets play in building a safe and enduring world, and, on the basis of the review, builds a research framework for assessing the link between finance and sustainable development. The study provides an assemblage of empirical evidence and highlights the burning issues that require the attention of policy makers, researchers, practitioners, global development finance institutions and other stakeholders. The study concludes by elaborating critical research gaps. We find that the majority of the research is concentrated on Financing Sustainability & Responsible Investing and Sustainability & Performance while the sustainability implications of Islamic Finance and the Policy and Regulation dimensions of sustainability have received little attention.