This study investigates the impact of sustainability-related uncertainty (SRU)âcaptured via the Sustainability-related Uncertainty Index in equal-weighted (ESGUI_EQ) and GDP-weighted (ESGUI_GDP) formsâon the volatility of green financial assets, focusing on decentralized finance (DeFi) protocols and Environmental, Social, and Governance (ESG)-focused Exchange-Traded Funds (ETFs). Employing a fuzzy logic framework, complemented by 3D surface visualization, Rule Viewer analysis, diagnostic validation, and Granger causality tests, the study uncovers non-linear, asymmetric, and time-varying responses of these assets to sustainability ambiguity. Empirical results reveal a structural divergence: DeFi protocols amplify volatility due to fragmented governance, speculative investor behavior, and sensitivity to policy-driven signals, often exhibiting bidirectional predictive feedback with SRU, whereas ESG ETFs maintain stability through diversification, regulatory oversight, and rigorous ESG screening, primarily absorbing sustainability shocks. These findings extend sustainable finance theory by integrating governance, technology, and policy dimensions, and illustrate the value of fuzzy logic combined with Granger causality in modeling complex, ambiguous markets. From a practical standpoint, the study provides actionable guidance for investors, fund managers, and policymakers, emphasizing the importance of technology-informed governance, standardized ESG disclosures, regulatory sandboxes, and continuous monitoring of SRU.
This study investigates the relationship between public attention to the Sustainable Development Goals (SDGs) and cryptocurrency demand, specifically for Bitcoin (BTC) and Cardano (ADA). Given the environmental concerns associated with Proof-of-Work (PoW) and the sustainability benefits of Proof-of-Stake (PoS), we hypothesize that increased SDG attention leads to higher demand for green cryptocurrencies like Cardano and lower demand for non-green cryptocurrencies like Bitcoin. Using Ordinary Least Squares (OLS) regression and supervised machine learning algorithms, we analyze weekly cryptocurrency returns and Google Trends data from 2020 to 2025. The findings suggest that SDG attention has a statistically significant but weak negative impact on Bitcoin returns, while no significant effect is observed for Cardano. Machine learning models fail to predict cryptocurrency demand effectively. These results indicate that sustainability awareness alone is not a primary driver of cryptocurrency investment behavior.
Stephen Bishibura Erick, Bonamax Mbasa, Kulwa Mangâana
This study conducts a comprehensive bibliometric analysis of scholarly research on green economy and sustainable finance from 2014 to 2024. Drawing upon a dataset of 692 peer-reviewed publications indexed in Scopus and analysed using the Bibliometrix R package, the study maps the fieldâs intellectual landscape, thematic development, and collaborative networks. The findings reveal a consistent increase in scientific output, with a pronounced surge in publications after 2018. This growth trend aligns with global policy milestones such as the Paris Agreement, the European Union [EU] Sustainable Finance Action Plan, and the proliferation of Environmental, Social, and Governance [ESG] integration and green bonds. China emerges as the most productive country, while institutions such as Jiangsu University, the Southwestern University of Finance and Economics, and the Lebanese American University lead in publication volume and collaboration intensity. Keyword co-occurrence and thematic mapping identify dominant themes related to green finance, environmental sustainability, ESG frameworks, and renewable energy, alongside emerging topics like climate risk disclosure and transition finance. Conceptual and co-word network analyses further reveal the interdisciplinary integration of finance, economics, policy, and environmental science. The study also demonstrates the growing decentralization of institutional influence and the rise of both NorthâSouth and SouthâSouth collaborations. These findings offer valuable insights into the evolving structure of research in sustainable finance and inform future academic inquiry and policy development.
This paper introduces CarbonLedgerProof (CLP), a novel cryptographic traceability algorithm designed to connect asset-level emissions data with financial statement estimates for enhanced Environmental, Social, and Governance (ESG) assurance and impairment testing. The proposed CLP algorithm bridges the gap between carbon emissions reporting and the financial implications of environmental risks, ensuring transparency and traceability across asset portfolios. By integrating blockchain technology and zero-knowledge proofs (ZKPs), CLP offers a secure and efficient way to validate emissions data against financial estimates, addressing challenges in ESG data integrity and providing an automated framework for impairment testing in the context of sustainability. In comparison to existing algorithms such as GreenLedger, CarbonProof, ESG-Chain, and a Traditional Audit (TradAudit) baseline. CLP demonstrates superior performance in terms of scalability, data integrity, and computational efficiency. Through an extensive experimental evaluation, we showcase CLP's ability to significantly reduce verification time and enhance the accuracy of ESG assurance processes. The results indicate that CLP outperforms traditional methods in integrating emissions data into financial systems, offering an innovative approach for real-time emissions monitoring and risk assessment. This paper concludes by proposing CLP as a transformative tool for corporate ESG reporting, with practical implications for financial institutions, auditors, and regulators seeking to streamline the integration of carbon data into decision-making frameworks.
Nurgul Bakytbekovna Aiupova, Md Tota Miah, Krisztina Taralik
ABSTRACT Blockchain technology has emerged as a potential disruptor in nonâfinancial reporting practices for firms to publicly report their social and environmental impact with its promise of immutability and decentralization. In this context, this study employs a bibliometric analysis to explore the scientific advancements of blockchain applications in CSR reporting from 2015 to 2025. VOSviewer and Biblioshiny in Rstudio applications were employed to perform the required analysis. Drawing data from Scopus and Web of Science (153 articles), the results reveal a significant shift in focus from traditional corporate social responsibility (CSR) reporting mechanisms toward technologyâenabled sustainability reporting. The thematic analysis presents five significant areas for further exploration, including corporate governance and sustainability strategy, technologyâdriven sustainable finance, CSR reporting and credibility, ESG performance and digital innovation, and blockchain for accountability and responsibility. The proposed conceptual framework suggests integration of technologyâorganizationâenvironment (TOE) elements when introducing new technology within the organization. Future researchers can empirically test the framework's antecedents to assess the socioâeconomic context of different types of nonâfinancial reporting.
Jerusa Alberton, Marcelo CabĂșs Klötzle, Marcelo Guedes Pecly, Carlos de Lamare Bastian-Pinto
This paper examines whether the release of ESG ratings for blockchains and tokens influences investor behavior in cryptocurrency markets. In October 2021, Green Crypto Research (GCR) published the first systematic ESG ratings for digital assets, addressing growing institutional demand for sustainability information. Building on Ammann et al. (2018), who documented increased flows into high-ESG mutual funds after Morningstarâs ESG rating release, we use an Event Study methodology to analyze abnormal trading volumes before and after the GCR announcement. We find no significant increase in trading activity for highly rated blockchains or tokens, providing no evidence that investors reallocated funds toward higher-rated cryptocurrencies. These findings are relevant for investors evaluating ESG integration in digital assets, for policymakers considering sustainability disclosure in crypto markets, and for researchers studying the intersection between ESG and emerging financial technologies.
We examine how capital allocation responds to the technological abatement of a major environmental externality in cryptocurrency markets. Exploiting 34 million account-level trades around Ethereum's The Merge, a quasi-natural experiment that reduced the asset's carbon footprint by over 99.9%, we examine the presence of environmentally conscious (green) investors. To disentangle environmental concerns from general yield-seeking or reactions to altered protocol tokenomics, we identify these investors ex-ante by their revealed preference to divest when public attention to global warming escalated during a pre-event quiet period. Results show that these sophisticated green investors apply a significant brown discount pre-Merge, purchasing less Ether than their peers. Interestingly, this gap closed entirely post-Merge, indicating the rational removal of an environmental penalty rather than a market-wide pursuit of new staking yields. A decomposition of returns reveals that green investors earned superior financial gains relative to the non-green peers pre-Merge. However, the advantage vanished thereafter, indicating that the trading activeness reflects the sophisticated pricing of environmental transition risk rather than pure altruism. Overall, we argue that technological abatement can reshape capital flows and thus serve as a powerful complement to environmental regulation.
Ylva Baeckström, Akanksha Jalan, Roman Matkovskyy, Julia Roloff
Abstract Individual investors dominate the rapidly growing US$2.73 trillion cryptocurrency market. Cryptocurrencies are highly controversial because of their real and expected ethical and environmental impacts. Surveying 1500 individual investors in Denmark, Finland, and Sweden, we reveal that beliefs about the ethical, sustainability, and environmental implications of cryptocurrencies influence current and intended ownership. While future participation intentions are predicated on currently owning cryptocurrencies, this relationship is moderated by investorsâ ethical and sustainability perceptions. Cryptocurrency knowledge and education significantly moderate the relationship between belief and intended ownership. Furthermore, we identify notable gender differences: ethical beliefs more strongly mediate future holding intentions among men, while sustainability perceptions have a greater mediating effect among women. In line with dual-process theory concepts, previous cryptocurrency trading experience and knowledge further reinforce this relationship. Our research has broad relevance to stakeholders, including policy makers, particularly in light of the current debate about Fintechâs role in fostering financial inclusion and the dubious ethical, sustainable, and environmental position of cryptocurrency mining and trading.
The effect of competitive pressure on ESG may diverge. On the one hand, when competitive pressure increases, firms have incentives to increase moral capital by fulfilling ESG to hedge against risks, on the other hand, the decline in firm performance due to competition may weaken firms' ability to fulfill ESG. Research on this issue has important theoretical and practical significance. Based on data from Chinese listed companies from 2010 to 2022, we used business similarity as a proxy for competitive pressure and find it significantly improves corporate ESG performance, i.e., the risk hedging effect of ESG dominates. Corporate financing constraints negatively moderate this effect. The ability of firms to transfer risk increases as their business becomes more decentralized, which in turn weakens this effect. Conversely, when firms have more concentrated sales, their ability to transfer risk diminishes, amplifying this effect. Our study explores the measure of competitive pressure and business similarity, also expands the research on the impact of business characteristics on the non-economic consequences of firms and ESG motivations.
Leonardo Henrique Lima de Pilla, Alketa Peci, Rodrigo de Oliveira Leite
ABSTRACT Corporatization in the public sector entails decentralizing the provision of public goods and services to more autonomous entities, including state-owned enterprises (SOEs). Research indicates that the decision to corporatize is driven, among other factors, by the pursuit of financial sustainability in public organizations. A continuing debate revolves around whether the political ideology of incumbents is linked to the creation of SOEs. However, limited attention has been given to understanding if incumbentsâ ideology shapes SOEsâ financial performance and, hence, financial sustainability. This is concerning because SOEs operate beyond political cycles, facing pressures from ideologically different governments over time. Herein, we investigate whether the incumbentsâ ideologies shape SOEsâ financial performance. We hypothesize that the more right leaning the incumbent, the greater the SOEsâ financial performance. However, given that incumbentsâ decisions are influenced by their political partiesâ behaviors, the effects of ideology may be contingent on these factors. Thus, we investigate whether the association of incumbentsâ ideology with SOEsâ financial performance is weaker when incumbentsâ political parties display non-policy behaviors (e.g., by prioritizing electoral outcomes or office occupation). We analyze a 2019â2022 panel of 317 SOEs controlled by 27 subnational governments in Brazil with both FGLS and instrumental variable regression approaches. The data comprising 1,116 SOE-year observations confirm our hypotheses. Our research contributes to scholarship on the drivers of public organizationsâ financial performance and sheds light on the role of political contingencies, such as incumbentsâ ideology and party predominant behaviors regarding SOEsâ financial performanceâa commonly overlooked gap in current research.
This study presents a bibliometric analysis of sustainable finance research using data exclusively from the WoS and Scopus database and visualization via VOSviewer. The aim is to map the intellectual landscape, identify thematic clusters, and explore global collaboration patterns within this rapidly evolving field. Keyword co-occurrence analysis highlights "sustainable finance" as the central theme, surrounded by related concepts such as ESG, green finance, green bonds, and sustainable development goals. Temporal and density visualizations reveal a shift in focus from traditional sustainability issues to emerging topics like greenwashing, decentralized finance, and fintech. Author and country collaboration maps uncover influential scholars and strong regional networks, particularly among institutions in the United Kingdom, India, Germany, and Italy. While the field shows high growth and thematic diversity, it also displays gaps in methodological variety, geographic inclusion, and institutional integration. The findings contribute to a comprehensive understanding of sustainable finance research trends and provide directions for future interdisciplinary inquiry.
The assessment and promotion of responsible and ethical practices within the dynamic fintech banking sector are crucial, and sustainable ratings play a pivotal role in achieving these objectives. As the fintech industry disrupts traditional banking, it becomes imperative to evaluate its environmental, social, and governance (ESG) performance to effectively manage risks and maximize positive impacts. This abstract delves into the significance, challenges, and recommendations surrounding sustainable ratings in fintech banking. Although fintech and digital banking offer great potential, they also pose ESG risks. Innovations in areas like digital payments, decentralized finance, big data analytics, robo-advisory, and lending platforms reshape the financial landscape and contribute to financial inclusion, consumer empowerment, and efficiency. However, the long-term sustainability implications of these advancements remain uncertain. To address this, tailored ESG rating mechanisms are needed to assess fintech banking based on material sustainability issues. These ratings evaluate performance across key metrics such as climate action, ethical AI, data stewardship, financial inclusion, and governance. Stakeholders can leverage these ratings to identify sustainability leaders and align investments with the United Nations Sustainable Development Goals. Mainstreaming fintech sustainability ratings requires collaboration among multiple stakeholders, encompassing the establishment of reporting standards, disclosure frameworks, assurance mechanisms, and capacity-building initiatives. Challenges in this pursuit include the absence of sector-specific measurement standards, the reluctance of fintech firms to allocate resources to sustainability efforts, limited internal expertise, and concerns surrounding confidentiality and security. Overcoming these challenges necessitates the introduction of mandatory sustainability disclosure policies by regulators, the development of industry-specific reporting standards by industry associations and standard setters, and the integration of sustainability due diligence into the decision-making processes of investors. Furthermore, capacity-building programs are essential to educate fintech leaders on material ESG risks and integrate sustainability considerations into their strategic planning. Ultimately, sustainable ratings in fintech banking serve as a framework for evaluating and incentivizing responsible practices, empowering stakeholders to direct investments towards sustainable fintech innovation and fostering an inclusive and sustainable financial ecosystem.
The intersection of Environmental, Social, and Governance (ESG) investing and decentralized finance (DeFi) introduces innovative pathways for integrating sustainability into financial markets. This study conducts a comparative analysis of ESG-focused DeFi protocols, such as KlimaDAO and Regen Network, and traditional ESG investment funds, including the Vanguard ESG U.S. Stock ETF and BlackRock Sustainable Advantage Large Cap Core Fund. Using data from March 2021 to March 2023 and quantitative methods such as ordinary least squares (OLS) regression, the study evaluates financial performance, transparency, and impact assessment. Results indicate that ESG-focused DeFi protocols provide enhanced transparency and potential for higher returns but are hindered by greater volatility and regulatory uncertainty. Conversely, traditional ESG funds offer stability and robust governance frameworks but lack the real-time transparency inherent to DeFi platforms. The findings underscore the need for standardized ESG reporting and offer actionable insights for investors aiming to align sustainability goals with financial performance
Xinlai Liu, Wenbiao Liang, Yelin Fu, George Q. Huang
Investors are increasingly relying on Environmental, Social, and Governance (ESG) indexes to obtain a third-party assessment of corporate sustainability performance. Various ESG indexes are, therefore, released by prominent rating agencies, including MSCI, Sustainalytics, Refinitiv, etc. However, existing ESG indexes overvalue the usage of massive ESG metrics while ignoring various ESG disclosure levels, leading to critical issues such as limited company coverage, inflexible ESG framework, and obscure assessment processes. This paper proposes a novel Dual ESG Index (DESGI) model using blockchain technology to provide a flexible and transparent corporate sustainability assessment. Firstly, the DESGI model is developed by analogy to the rationale and concepts of the academic credit system due to its advantages of scalability and flexibility. Secondly, blockchain is used to build a transparent environment for ESG assessment. Thirdly, the smart contract and crypto token, as the core blockchain constructs, are used to achieve the dual-dimensional ESG depth and width assessment using ESG GPA and ESG credit, respectively. Finally, a case study is carried out to validate the DESGI by using real-life ESG data and comparing it with four existing ESG indexes. Several managerial implications are also found: (1) DESGI can expand the scope of companies evaluated by ESG criteria regardless of company size or scale; (2) DESGI provides a good potential to fight against greenwashing through the blockchain-based traceability; (3) DESGI can identify the ESG elites who disclose fewer ESG metrics but with excellent ESG performances, which can hardly be achieved using traditional ESG indexes.
Uli Wildan Nuryanto, Basrowi Basrowi, Icin Quraysin, Ika Pratiwi
This research investigates the intricate relationships between Environmental Management Control Systems (EMCS), Blockchain Adoption (BCHA), Cleaner Production (CLPR), Product Efficiency (PROD), Environmental Reputation (ENRE), and Environmental Performance (ENPE) within organizational contexts in Indonesia. The study aims to shed light on the role of technology adoption, sustainability practices, and reputation management in shaping environmental outcomes. Methodologically, the research employs a quantitative approach, utilizing survey data from diverse organizations. Structural equation modeling (SEM) analyzes the data and tests the hypothesized relationships. The findings reveal significant positive relationships between EMCS and BCHA, EMCS and CLPR, EMCS and PROD, BCHA and CLPR, BCHA and PROD, and BCHA and ENRE. Cleaner Production demonstrates a substantial positive impact on both ENRE and ENPE. Product Efficiency influences ENRE positively. However, the direct influence of PROD on ENPE is found to be inconclusive. The study contributes to understanding sustainability dynamics by highlighting the pivotal roles of EMCS, BCHA, CLPR, and PROD in driving environmental reputation and performance within organizations. Furthermore, it underscores the significance of aligning perceived reputation with tangible environmental commitment. Limitations include potential data constraints and the challenge of establishing causality due to the study's correlational nature. Future research is encouraged to explore diverse contexts, conduct in-depth case studies, and investigate moderating variables. This research offers novel insights into the complex interplay between technology adoption, sustainability practices, reputation management, and environmental outcomes, providing valuable guidance for organizations striving to navigate the sustainability landscape in an era of heightened environmental awareness.
The field of sustainability accounting aims to integrate environmental, social, and governance factors into financial reporting. With the growing importance of sustainability practices, emerging technologies have the potential to revolutionize reporting methods. However, there is a lack of research on the factors influencing the adoption of blockchain and cloud-based sustainability accounting in China. This study employs a mixed-methods approach to examine the key drivers and barriers to technology adoption for sustainability reporting among Chinese businesses. Through a systematic literature review, gaps in knowledge were identified. Primary data was collected through an online survey of firms, followed by in-depth case studies. The findings of the study reveal a positive relationship between company size and reporting behaviors. However, size alone is not sufficient to predict outcomes accurately. The industry type also has significant but small effects, although its impact on reporting behaviors varies. The relationship between profitability and reporting behaviors is intricate and contingent, requiring contextual examination. The adoption of blockchain technology is positively associated with capabilities, resources, skills, and regulatory factors. On the other hand, cloud computing adoption is linked to resources, management support, and risk exposures. However, the specific impacts of industry on adoption remain inconclusive. This study aims to offer empirical validation of relationships, shedding light on the intricate nature of interactions that necessitate nuanced conceptualizations incorporating contextual moderators. The findings underscore the importance of providing customized support and adaptable guidance to accommodate the evolving practices in sustainability accounting. Moreover, the assimilation of technology and organizational changes highlights the need for multifaceted stakeholder cooperation to drive responsible innovation and address the challenges posed by digital transformations in this field.
SYNOPSIS This study examines widespread greenwashing practices in corporate environmental disclosures and the potential of blockchain and smart contracts to address this problem. We define six types of greenwashing risks in environmental disclosures: misconduct, selective disclosure, misclassification, hollow promise, in name only, and misleading presentation. To combat greenwashed disclosures, we propose a comprehensive framework that integrates blockchain and smart contracts to create automated controls and provide tamper-resistant audit evidence. On the basis of this framework, we design and implement smart contracts on blockchain to combat greenwashing practices in Shell plcâs environmental disclosures. This study provides automatic, real-time, and secure greenwashing risk controls with early warnings for auditors and regulators. In addition, it introduces new audit tasks such as using blockchain information to verify environmental disclosures; creates novel opportunities for environmental experts to set rules for greenwashing; and offers insights on greenwashing risk detection, market monitoring, and policy development for regulators. JEL Classifications: M41; M42.
Blockchain technology is a public ledger that stores data in a chain of blocks which can radically improve the quality of our records from ârecords that might be trustworthyâ to ârecords that trust is absoluteâ. This chapter explores one area that blockchain technology can radically transform but has not yet received significant attention. We evaluate the suitability of applying blockchain technology for corporate social responsibility (CSR) reporting. We demonstrate that blockchain technology is suitable in the context of CSR reporting since there is a strong need for an immutable common database shared among various stakeholders with potential trust issues. We also argue that blockchain technology does not completely eliminate existing trusted third parties such as governments, international organizations that provide CSR reporting standards, major CSR reporting assurance companies and major CSR infomediaries. In particular, blockchain technology can be used as a platform that integrates all traditional trusted third parties, transforms their functions, and reduces their drawbacks for advancing CSR reporting. We also demonstrate that a permissionless public blockchain would be the most suitable structure.
Simone Pizzi, Andrea Caputo, Andrea Venturelli, Fabio Caputo
Purpose The purpose of this paper is to evaluate blockchainâs enabling role for sustainability reporting. This study extends the scientific knowledge about the impacts related to the notarisation of mandatory sustainability reports through a publicly available blockchain. Design/methodology/approach Building on the idea journey framework, this paper presents the case study of Banca Mediolanum in Italy, a first-mover who notarised its non-financial declaration on a public blockchain to mitigate the information asymmetries that negatively impact stakeholder engagement. Findings The analysis reveals that the notarisation of the non-financial reports through a publicly available blockchain can represent a tool useful to mitigate the asymmetric information between organisations and stakeholders. Practical implications Although academics and practitioners have observed the benefits of its implementation, only a few companies have adopted blockchain systems to ensure their informationâs reliability. The findings underline the opportunity for socially responsible organisations to signal their orientation towards sustainable development through the adoption of an innovative tool. Social implications The proliferation of non-financial reports prepared on mandatory basis mitigated the signalling effects related to the disclosure of non-financial information. The case study underlines the opportunity for socially responsible organisations to overcoming this criticism through notarisation. Originality/value To the best of the authorsâ knowledge, this is the first study about sustainability reporting practices and blockchain. This research contributes to the currently scarce discussion about the role of blockchain in non-financial reporting. In addition, the authors contribute to the scientific conversation about the need to rethink assurance in non-financial reporting practices.