Blockchain and Risk Management in Sustainable Finance Ecosystems

Abstract

This chapter examines the role of blockchain technology in strengthening risk mitigation within sustainable finance ecosystems. As sustainable finance seeks to align investments with ESG goals, it faces challenges like greenwashing, inconsistent data, carbon credit fraud, and complex regulatory landscapes. Blockchain offers a transparent, decentralized, and tamper-proof infrastructure to address these vulnerabilities. Through smart contracts, automated compliance, and real-time verification, blockchain enhances trust, accountability, and efficiency in ESG practices. The chapter explores use cases and frameworks to demonstrate blockchain's potential to build resilient and credible, and sustainable finance systems.