Unlocking the Potential of Sustainable Finance

Dr. Isabelle Hinsche-McLardy

doi:10.5771/9783689004651

Summary

Unlocking the Potential of Sustainable Finance explores how financial markets, instruments and banks can mobilise urgently needed investments for the climate transition. It examines whether sustainability-linked bonds reach the companies with the biggest impact potential, how banks can adapt financing solutions to different business sizes and sectors, and how instruments must evolve for SMEs and firms relying on traditional bank-based financing. Combining data-driven analysis with insights from the financial and real economy, it highlights challenges, opportunities, and solutions for unlocking the potential of sustainable finance and thereby securing a resilient, climate-neutral economy. Dr. Isabelle Hinsche-McLardy is a finance and sustainability expert with a PhD in Economics and Sustainable Finance from Goethe University Frankfurt. She completed her studies in the Netherlands, the USA, and Germany. Her work focuses on topics related to the energy and sustainability transition, in particular sustainable finance, where she advises on how financial markets and instruments can support a successful sustainability transformation. This Title is also Available as Open Access.

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Bibliographic data

Copyright year: 2025
ISBN-Print: 978-3-68900-464-4
ISBN-Online: 978-3-68900-465-1
Publisher: Tectum, Baden-Baden
Series: Wissenschaftliche Beiträge aus dem Tectum Verlag: Wirtschaftswissenschaften
Volume: 111
Language: English
Pages: 252
Product type: Book Titles

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1. Acknowledgments
2. Summary of the Thesis
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1. Abstract
2. 1.1 Introduction
3. 1. 1.2.1 The Action Plan on Sustainable Finance Growth
  2. 1.2.2 Transition Financing
  3. 1.2.3 Sustainability-Linked Bonds
  4. 1.2.4 Sustainability-Linked Bond Market
  5. 1.2.5 Risks and Challenges for Sustainability-Linked Bonds
4. 1. 1.3.1 Sustainability Transformation Target Groups
  2. 1.3.2 Market Characteristics
  3. 1.3.3 Company Characteristics
  4. 1.3.4 Financial Characteristics
5. 1. 1.4.1 Probit Choice Model
  2. 1.4.2 Data and Sample Selection
  3. 1.4.3 Data Summary
  4. 1.4.4 Empirical Methodology
6. 1. 1.5.1 SLB Market Attracts Carbon-Intensive Industries – But Not ESG Laggards
  2. 1.5.2 Influential Market, Company and Financial Characteristics
7. 1.6 Discussion and Conclusion
8. References
9. Appendix A: Tables
10. Appendix B: Figures
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1. Abstract
2. 2.1 Introduction
3. 1. 2.2.1 Regulatory Framework
  2. 2.2.2 Why Do Companies and Banks Care About Sustainable Finance?
4. 1. 2.3.1 Survey Design
  2. 2.3.2 Methodology
  3. 2.3.3 Data
  4. 2.3.4 Representativeness
5. 1. 2.4.1 Identifying Company Groups
  2. 2.4.2 Sustainable Finance Instrument Use
6. 1. 1. 2.5.1.1 Perceived Regulatory Pressure
    2. 2.5.1.2 Perceived Transformation Risk
    3. 2.5.1.3 Perceived Risk to Lose Financing Access
    4. 2.5.1.4 Perceived Likelihood of Sustainability & Credit Condition Linkage
    5. 2.5.1.5 Company’s Sustainability Awareness
    6. 2.5.1.6 Company’s Sustainability Action
    7. 2.5.1.7 Company’s Sustainable Finance Knowledge
  2. 1. 2.5.2.1 Companies’ Reported Perceived Barriers to SFI Use
    2. 2.5.2.2 Ranking of Barriers and Motivations to Use SFIs
7. 1. 1. 2.6.1.1 Bank Sustainability Support Rating
    2. 2.6.1.2 Bank SFI Recommendation
    3. 2.6.1.3 Bank’s Role in Sustainability Transformation
  2. 2.6.2 Variation in Sustainable Finance Support Based On Company Size
  3. 2.6.3 The Role of Promotional Loans
8. 1. 2.7.1 Improve Sustainable Finance Awareness and Knowledge
  2. 2.7.2 Simplify the Implementation and Communicate Expectations
  3. 2.7.3 Provide Tailored Sustainable Finance Support
9. 2.8 Conclusion
10. References
11. Appendix A: Tables
12. Appendix B: Figures
13. Appendix C: Survey
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1. Abstract
2. 3.1 Introduction
3. 1. 1. 3.2.1.1 Transparency & Comparability
    2. 3.2.1.2 Sustainability Criteria in Risk Assessments
  2. 1. 3.2.2.1 Existence of a Risk Differential
    2. 3.2.2.2 Sustainability Risk Regulations
    3. 3.2.2.3 Reputation and Pricing as Additional Motivational Factors
4. 1. 3.3.1 Germany’s Bank-Based Financial System
  2. 3.3.2 The House Bank Model
  3. 3.3.3 SMEs and the House Bank Model
5. 1. 3.4.1 Research Questions
  2. 3.4.2 Existing Literature
  3. 3.4.3 Methodology
  4. 3.4.4 Data and Data Summary
6. 1. 1. 3.5.1.1 Motivational Factors
    2. 3.5.1.2 Motivational Factors of SMEs Not Active in Capital Markets
  2. 1. 3.5.2.1 Implementation Factors
    2. 3.5.2.2 Qualitative Assessment of Companies’ Implementation Barriers
    3. 3.5.2.3 Implementation Factors of SMEs Not Active in Capital Markets
  3. 1. 3.5.3.1 Enabling Factors
    2. 3.5.3.2 Qualitative Assessment of Companies’ Bank Support Expectations
    3. 3.5.3.3 Enabling Factors of SMEs Not Active in Capital Markets
  4. 1. 3.5.4.1 Promotional Loan Interest, Knowledge and Use
    2. 3.5.4.2 Promotional Loans and SMEs Not Active in Capital Markets
7. 3.6 Discussion
8. 3.7 Conclusion
9. References
10. Appendix A: Tables