The role of stock exchanges in promoting the banking sector in adopting green finance: a global analysis with insights from emerging markets

Over the last 50 years, the field of finance has evolved from three traditional pillars to include a fourth critical pillar to ensure planetary survival, sustainable finance. The urgency to transition from traditional finance to sustainable finance has never been greater, as climate change accelerates, regulatory pressures intensifies globally with developing economies further falling into poverty with increasing biodiversity loss, and investors increasingly face lack of market transparency and demand environmentally and socially responsible portfolios to mitigate long-term risks and secure equitable economic growth. This paper examines the increasing need of cohesion required by stock exchanges, governments and banks in pushing their economies towards following the pathways towards limiting the rise of global temperatures to below 1.5°C and achieving the 2050 goal of Net-Zero. By synthesizing over 64 sources, the study further focuses on scaling sustainable financial instruments and provides an overview of both the financial and sustainability industry. This research study sets an agenda in scaling sustainable finance in the 21st century.