Volume 4 , Issue 1 , PP: 23-28, 2024 | Cite this article as | XML | Html | PDF | Full Length Article
Mohamed Elkholy 1 * , Ahmed A. El-Douh 2
This research paper responds to the growing global demand for environmentally and socially responsible financial practices by outlining a strong framework for incorporating sustainable and green finance into effective trading portfolio management. The study acknowledges the current difficulties of reconciling financial goals with sustainability criteria and uses a methodological approach that includes risk-sensitive asset allocation, mean-variance optimization, and strategic maximization of the Sharpe ratio. By carefully examining and analyzing this research, it explores the complex dynamics of sustainable finance, thus providing a holistic understanding of how financial success is related to environmental and social responsibility. The findings of this study provide important insights into ongoing discussions on responsible investment strategies, thereby giving investors and policymakers a guide on how to align their financial objectives with sustainable development imperatives.
Sustainable finance , green finance , Trading portfolio , financial sustainability , Investment strategy , Portfolio optimization , Ethical investing , Risk management , Corporate social responsibility (CSR).
[1] Lee, Jung Wan. 2020. “Green Finance and Sustainable Development Goals: The Case of China.” Lee, Jung Wan (2020). Green Finance and Sustainable Development Goals: The Case of China. Journal of Asian Finance Economics and Business 7 (7): 577–86.
[2] Sadiq, Muhammad, Sakkarin Nonthapot, Shafi Mohamad, Ooi Chee Keong, Syed Ehsanullah, and Nadeem Iqbal. 2022. “Does Green Finance Matter for Sustainable Entrepreneurship and Environmental Corporate Social Responsibility during COVID-19?” China Finance Review International 12 (2): 317–33.
[3] Mohd, Sharif, and Vijay Kumar Kaushal. 2018. “Green Finance: A Step towards Sustainable Development.” MUDRA: Journal of Finance and Accounting 5 (1): 59–74.
[4] Hussain, Shahid, Abdul Rasheed, and Saad ur Rehman. 2023. “Driving Sustainable Growth: Exploring the Link between Financial Innovation, Green Finance and Sustainability Performance: Banking Evidence.” Kybernetes.
[5] Ye, Jianmu, and Efifania Dela. 2023. “The Effect of Green Investment and Green Financing on Sustainable Business Performance of Foreign Chemical Industries Operating in Indonesia: The Mediating Role of Corporate Social Responsibility.” Sustainability 15 (14): 11218.
[6] Dörry, Sabine, and Christian Schulz. 2018. “Green Financing, Interrupted. Potential Directions for Sustainable Finance in Luxembourg.” Local Environment 23 (7): 717–33.
[7] Fathihani, Jumadil Saputra, Mohd Hassan Che Haat, Mohd Yusoff Yusliza, Zikri Muhammad, and Abdul Talib Bon. 2021. “A Review of Sustainable Green Finance Literature: Mini-Review Approach.” In Proceedings of the International Conference on Industrial Engineering and Operations Management, 3194–3207.
[8] Macchiavello, Eugenia, and Michele Siri. 2022. “Sustainable Finance and Fintech: Can Technology Contribute to Achieving Environmental Goals? A Preliminary Assessment of ‘Green Fintech’and ‘Sustainable Digital Finance.’” European Company and Financial Law Review 19 (1): 128–74.
[9] Thompson, Simon. 2021. Green and Sustainable Finance: Principles and Practice. Vol. 6. Kogan Page Publishers.
[10] Kumar, Love, Farah Nadeem, Maggie Sloan, Jonas Restle-Steinert, Matthew J Deitch, Sohail Ali Naqvi, Avinash Kumar, and Claudio Sassanelli. 2022. “Fostering Green Finance for Sustainable Development: A Focus on Textile and Leather Small Medium Enterprises in Pakistan.” Sustainability 14 (19): 11908.
[11] Cunha, Felipe Arias Fogliano de Souza, Erick Meira, and Renato J Orsato. 2021. “Sustainable Finance and Investment: Review and Research Agenda.” Business Strategy and the Environment 30 (8): 3821–38.
[12] Berensmann, Kathrin, and Nannette Lindenberg. 2019. “Green Finance: Across the Universe.” In Corporate Social Responsibility, Ethics and Sustainable Prosperity, 305–32. World Scientific.
[13] Naeem, Muhammad Abubakr, Sitara Karim, Mustafa Raza Rabbani, Abu Bashar, and Satish Kumar. 2023. “Current State and Future Directions of Green and Sustainable Finance: A Bibliometric Analysis.” Qualitative Research in Financial Markets 15 (4): 608–29.
[14] Ferri, Giovanni, Bonnie Annette Acosta, and others. 2019. “Sustainable Finance for Sustainable Development.” Center for Relationship Banking and Economics Working Paper Series 30.
[15] Grijalvo, Mercedes, and Carmen Garc\’\ia-Wang. 2023. “Sustainable Business Model for Climate Finance. Key Drivers for the Commercial Banking Sector.” Journal of Business Research 155: 113446.
[16] Zheng, Guang-Wen, Abu Bakkar Siddik, Mohammad Masukujjaman, and Nazneen Fatema. 2021. “Factors Affecting the Sustainability Performance of Financial Institutions in Bangladesh: The Role of Green Finance.” Sustainability 13 (18): 10165.
[17] Munitlak-Ivanovic, Olja, Jovan Zubović, and Petar Mitić. 2017. “Relationship between Sustainable Development and Green Economy Emphasis on Green Finance and Banking.” Економика Пољопривреде 64 (4): 1467–82.
[18] Muthuswamy, M. and M. Ali, A. (2023) “Sustainable Supply Chain Management in the Age of Machine Intelligence: Addressing Challenges, Capitalizing on Opportunities, and Shaping the Future Landscape”, Sustainable Machine Intelligence Journal, 3. doi: 10.61185/SMIJ.2023.33103.
