Introduction

Abstract

This chapter, written by the editors, provides the motivations of the book, describes its structure and summarizes the content of each chapter. The authors argue that globalization, climate change, and resource waste have led to the adoption of socially responsible economic behavior in financial industries. Also International initiatives like the UN Principles for Responsible Investment, climate bonds, and the Paris Agreement have promoted environmental, social, and governance (ESG) responsibility in investment decisions. This has led socially responsible investments (SRI) to evolve from a limited activity to an important part of the International Asset Management Capital Market. Proponents argue that SRI can influence companies to address corporate social responsibility, deliver “dual yields”, stabilize financial markets, and finance social policies. However, opponents argue that SRI strategies may have lower returns, higher expenses, and reduce market freedom. Recently, the EU has implemented regulatory measures to promote sustainable economic growth, reduce carbon emissions, and mitigate climate change through green finance. Critics argue that a balance between regulatory measures and market-based solutions is essential for effective implementation and enforcement across member states. The volume aims to analyze these issues by adopting a multidisciplinary perspective, incorporating contributions from scholars of economics, finance, law, and economic history.