Advancing Green Finance Mechanisms and Environmental Accountability in the Global Economy

Abstract

This study investigates the integration of sustainability into financial decision-making and the advancement of green finance mechanisms, with a focus on environmental accountability. Through a mixed-methods approach analyzing leading companies across diverse industries, the research examines key areas including the integration of environmental factors into corporate finance, sustainability reporting practices, green investment strategies, carbon accounting, and ESG performance. Findings reveal that while awareness of environmental considerations is growing, their effective integration varies significantly and is enhanced by dedicated sustainability teams, robust governance, and standardized frameworks. The study demonstrates that green investments, particularly green bonds, can offer competitive financial returns alongside environmental benefits, challenging the perceived trade-off between profitability and sustainability. A positive correlation between strong ESG performance and long-term financial returns is observed, though this relationship is complex and context dependent. The study concludes that collaborative efforts among financial institutions, corporations, policymakers, and investors are essential for advancing green finance mechanisms and embedding environmental accountability into the core of financial systems to foster a sustainable global economy.