IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-030-75405-1_33.html
   My bibliography  Save this book chapter

Financial Sector Growth, Consolidation, and New Technologies Make It a Powerful Actor in Tackling Global Environmental Challenges

In: Industry 4.0

Author

Listed:
  • Vasily N. Tkachev

    (Moscow State Institute of International Relations (MGIMO University))

  • Elizaveta V. Kiseleva

    (Moscow State Institute of International Relations (MGIMO University))

  • Olga V. Fedyanina

    (British Embassy Moscow)

Abstract

The research aims to provide a comprehensive review of the current state and prospects for deploying the Industry 4.0 digital technologies, primarily artificial intelligence, by the global financial industry to promote sustainable development and tackle global environmental challenges. Analysis of publications of specialized international organizations, statistical data, and news releases has revealed that the financial sector holds a special place in the modern economy and therefore has to play a key role in confronting environmental challenges by mobilizing financial resources for sustainable activities, providing insurance coverage and helping to manage and hedge ESG-associated risks. However, despite the growing willingness of individuals to invest sustainably, institutional investors now face numerous difficulties when trying to respond to this shift in demand by adapting their investment strategies and offering specialized financial instruments. These difficulties include, among others, the lack of standardized definitions of sustainable activities and instruments; the voluntary and inconsistent nature of corporate ESG disclosure; the complex and long-term character of ESG-related risks. Digital technologies, such as big data and artificial intelligenceartificial intelligence, can contribute to elimination of these difficulties by identifying, collecting, standardizing, and analyzing the vast amounts of inconsistent ESG-related data in order to evaluate sustainability risks and to provide insights on a company’s ESG performance even in the absence of standardized disclosure and at significantly reduced cost in comparison with manual research. However, digital technologies can themselves pose ESG-related risks, producing negative effects on environment, employment, inequality, and raising privacy concerns. It is therefore recommended that national authorities should not only promote the wider use of digital technologies in sustainable finance, but also set up legal frameworks to guard against the associated risks.

Suggested Citation

  • Vasily N. Tkachev & Elizaveta V. Kiseleva & Olga V. Fedyanina, 2021. "Financial Sector Growth, Consolidation, and New Technologies Make It a Powerful Actor in Tackling Global Environmental Challenges," Springer Books, in: Elena B. Zavyalova & Elena G. Popkova (ed.), Industry 4.0, chapter 0, pages 375-388, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-75405-1_33
    DOI: 10.1007/978-3-030-75405-1_33
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abbas, Jawad & Wang, Lisu & Ben Belgacem, Samira & Pawar, Puja Sunil & Najam, Hina & Abbas, Jaffar, 2023. "Investment in renewable energy and electricity output: Role of green finance, environmental tax, and geopolitical risk: Empirical evidence from China," Energy, Elsevier, vol. 269(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-030-75405-1_33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.