Sustainable and Climate Finance: An Integrative Framework from Corporates to Markets and Society

This paper revisits the study of climate and sustainable finance. We conduct a systematic review of existing research and develop an integrative conceptual framework that starts with a corporate finance perspective to (1) encompass the perspective “inside the firm”, to then (2) broaden from corporate finance to capital markets, and finally (3) from capital markets to an ecosystemic perspective. Within each of these three classes, we discern pivotal concepts in the domains of (A) climate finance, (B) sustainable finance, and (C) financial reporting and rating. We conclude by identifying promising avenues for policy and research that, in our perspective, merit increased consideration by researchers and regulators when designing future studies or policy interventions