Developments in sustainable finance: A new era of financial innovation

Sustainable finance has made remarkable strides over the past decade, with fund managers and corporations increasingly under pressure from stakeholders and shareholder activism to integrate environmental, social, and governance (ESG) criteria into their portfolios and asset allocation strategies.

This shift has been driven by growing awareness of climate risks and the demand for responsible investing. Developments in green and sustainability-linked bonds, and ESG-focused investment portfolios highlight the growing importance of aligning financial practices with sustainable goals. These innovative financial instruments help bridge the gap between environmental and financial sectors, contributing to the global effort to address climate change and other pressing environmental challenges. Moreover, regulatory frameworks and policy initiatives such as the European Union's Sustainable Finance Disclosure Regulation (SFDR) have been instrumental in pushing forward the sustainable finance agenda (European Commission, 2024).

However, recent geopolitical tensions have begun to slow this momentum. A particularly significant setback occurred with President Trump’s second withdrawal from the Paris Agreement, which undermined global climate commitments and introduced uncertainty about the future direction of climate policy. This withdrawal, along with other geopolitical factors, has led some companies to hesitate in fully pursuing their ESG agendas, fearing that the lack of cohesive international policy could create financial and operational risks.

Despite these challenges, there are rising calls to harness rapid technological advancements—particularly in artificial intelligence (AI)—to drive more innovative solutions to the climate crisis. AI offers tremendous potential for improving the accuracy of climate risk assessments, optimizing energy consumption, and developing sustainable infrastructure, which could help mitigate the impact of climate change. By leveraging these technological innovations, the financial sector could help accelerate progress toward sustainability, even in the face of uncertain political climates.

Looking ahead, sustainable finance is expected to continue evolving as both market demand and regulatory pressures increase as global environmental challenges become more urgent, however, the dynamics of sustainable finance in directing capital flows towards environmentally and socially responsible projects will be different to cope with the recent development on geopolitical uncertainty. Therefore, this conference will highlight the latest developments in sustainable finance during these volatile times, focusing on how innovation, particularly through emerging technologies, can help address climate challenges and drive the global economy towards a more sustainable future fostering a resilient and sustainable global economy for future generations.

This three-day conference will feature an evening reception, Gala dinner and Conference paper presentations.

Key note speaker

Bill Megginson is Professor and Price Chair in Finance at the University of Oklahoma’s Michael F. Price College of Business. He is also a Finance Area Editor at the Journal of International Business Studies and Visiting Professor at the University of International Business and Economics (Beijing).

His research interests in recent years have focused on the privatization of state-owned enterprises, sovereign wealth fund investments, energy finance, and investment banking principles and practices. He has published refereed articles in several top academic journals, including the Journal of Economic Literature, the Journal of Finance, the Journal of Financial Economics, the Journal of Law and Economics, the Review of Financial Studies, the Journal of Financial and Quantitative Analysis, and the Journal of International Business Studies. His research has been frequently cited in academic and professional publications, and his articles have been downloaded over 83,000 times from the Social Sciences Research Network, while his books and articles have been cited over 29,000 times (according to Google Scholar).

His co-authored study documenting significant performance improvements in recently privatized companies received one of two Smith Breeden Distinguished Paper Awards for outstanding research published in the Journal of Finance 1994.

He is author or co-author of nine textbooks, and has also served as a privatization consultant for the New York Stock Exchange, the OECD, the IMF, the World Federation of Exchanges, the European Bank for Reconstruction and Development, and the World Bank.