Chapter 4 Finance

This chapter is by Julia S. Kwok, Northeastern State University, 3100 E. New Orleans Street, Department of Accounting and Finance, College of Business and Technology, Broken Arrow, OK 74014. E-mail: kwok@nsuok.edu; Phone: 918-449-6516.

The intersection of sustainability and finance occurs on many fronts. In this chapter, we will discuss how sustainability impacts various activities associated with the finance function, such as investments, banking, trading, insurance, and more. The chapter starts with capital investments, which are long-term corporate finance decisions related to fixed assets and capital structure. The discussion of the valuation techniques centers on the inclusion of sustainability measures in the analysis. Green and socially responsible investment opportunities, such as green bonds and emissions trading, are explored in the financial investment section. We then turn to financial services, such as banking and insurance.